Evening star., 1947-02-03
No. /.


some of the departments, such as health
and welfare.
AS a result, the Commissioners have
taken the two other courses. They are
planning to ask the boss-Congress and
the community-for raise in the form
of new or increased taxes, and bigger
Federal payment. They also want to
borrow something less than $4,000, 900 on
a long basis from the Treasury
this money specifically to 60 toward ex-
pansion of the city's supply of drinking
water to meet the expected demand.
There has been no adjustment in the
tax structure toward increasing reve-
nues since 1899, when the present in
come tax was enacted.
To get better break from the citizens
of the United States the Commissioners
are pushing the O'Mahoney bill, under
which the city stands to get Federal
payment of about $12,000,000. The bill
prescribes formula relating the per-
centage of Federal payment to the per-
centage Of federally owned tax-exempt
land of the whole District acreage, ex-
elusive of parks, streets and alleys. Sem
ator O'Mahoney, Democrat. of Wyoming
Is its present sponsor. Senator Overton
Of Louisiana was the original sponsor.
In addition to the O'Mahoney bill, the
Commissioners are asking eight new or
increased taxes. AL were recommended
by a special tax committee of citizens
and officials headed by Corporation
Counsel Vernon E. West.
Seven of these would feed the So
called general fund, against which all
city expenses are charged with the ex-
ception of water, highways, traffic and
a portion of police salaries. In full
year, 1t is expected these would yield
$17,75O,000.
Here Are v.e Tax Proposals.
Proposed taxes and the amounts they
would produce are:
l. Broadening the present income tax
to apply to residents rather than persons
legally "domiciled" here and to catch in
comes earned in the District by nonresi-
dents: $2,500,000.
2. A 2 per cent general retail sales
tax with companion "use" tax at the
same rate on articles bought outside the
city which would be taxable If bought
here: 100000.
3. A 5 per cent levy on income of
unincorporated businesses, similar to
the corporation income tax: 100000.
4. A 2 per cent tax on gas, electric
and telephone bills, amounting to an ex-
tension of the general sales tax to
these businesses: 100000.
S. A 1-cent levy per package of 20
cigarettes: $800,000
8. Doubling most of the taxes on
liquor: $2,8O0,000.
7. A 10 per cent ticket tax on the
amusement industry: 100000.
The final tax boost being asked is
a 1-cent increase in the gasoline tax,
which is now cents gallon. This
would give the highway fund, which also
finances traffic expenses and a part Of
the policy salary bill, an additional ST.
100000. With this would go a measure
increasing the present 50-cent fee for
automobile inspection to 81. This would
help to make the inspection service
more nearly self sustaining.
The proposed long-term loan, coupled
with charging the Federal and District
governments for the water they now re-
ceive free, would make unnecessary any
immediate increase in the water rates by
balancing the charges against the third
Of the city's three revenue funds.
Both the tax program and the request
for water fund loan are being sub
mitted to Congress as balancing items
for the sos, 900 900 budget sought by the
Commissioners for the year beginning
next July l. The O'Mahoney bill is being
backed independently because the Bu-
reau of the Budget would not permit its
inclusion as balancing item.
If the entire tax program and water
loan are enacted the District will have
balanced budget for the coming year and
$3,700,000 left in, war savings for the gen.
eral fund. All water savings are due to
be sold under the money-raising plan.
If the OMahoney plan is enacted, an
additional 100000 would be available
II this were approved first, some adjust
ment could be made in the tax program
(Tomorrow-Our shortage Of local
taXpayers)