Evening star., 1947-05-27
Formula 10 Fix
u. 5. Aid on DC.
Costs Pushed
Income Tax Bill Also
Put Ahead; House
Gets Teacher Bill
By Don s. Worren

gress today were pressing for action
on legislation to regulate the size OF
the Federal payment toward Dis.
trict costs by a fixed formula.
Chairman Dirksen OF the House
District Committee and Chairman
Bates Of Its Fiscal Subcommittee set
this and action on a new District
income tax measure as the next
major steps to solve the Districts
financial headache.
The way was cleared for these
subjects when the House District
Committee reported the revised
teacher pay bill and sent 1t to the
House calendar. Shortly after the
House met, Majority Leader Halleck
obtained House consent for consid-
Grafton Thursday of the teacher pay
bill and other District measures.
This was contingent, however, on
the completion of House action on
the pending Agriculture appropria-
ton bill.
VIII Confer With Taber.
Mr.. Dirksen and Mr.. Bates were
seeking to confer later In the day
with Chairman Taber of the House
Appropriation Committee regard
ing the Federal payment formula.
Heretofore, Mr.. Taber has main
tained the present $8,000,000 lump
sum Federal payment was sufficient
Congressional leaders in charge OF
the District revenue program have
declared an increase is essential since
q heavy additional tax load on
District residents is held necessary
to meet record breaking budget re-
quirements, They are contending
for the justice of formula, which
would annually fix the size Of the
payment, as substitute for an arbi-
trarily fixed lump sum.
A fiat declaration for the need
Of formula came from Chairman
Dirksen.
When an observer commented
that under the lump-sum system
the size of the Federal share was
fixed "by guess and by God" Mr..
Dirksen said that is right. We
must settle this question by adop-
ton of fixed formula, so that Dis
trict finance officers may know how
much Federal payment they can
count on from year to year as per-
centage Of proposed budgets"
Teacher Bill Action Due. 4
Final action of the teacher pay
bill may be taken today by the Sen
ate District Committee 1t was
scheduled to meet at 2 pm. AS a
preliminary to this, its Fiscal Sub
committee, headed by Senator Cain, |
Republican, of Washington, met |
briefly this morning and reported
out the revised bill, which gives I
teachers an increase Of $3.50 over |
present temporary scales, or 5000
above the old basic levels.
Shortly after noon, Chairman
Cain announced his subcommittee
had approved the new District in
come tax bill. It will go before the
full District Committee for action
later today.
The bill is designed to bring thou
sands of additional persons living |
in Washington onto the income tax
roster. Instead of the present law
provision limiting application of the I
tax only to persons found "domi-
ciled' here. the new bill would apply |
the tax to all living here for seven |
months or more of the year-unless
they can show they have paid
State income or Intangible levy back
home.
Senator McGrath, Democrat, of
Rhode Island, member of the Cain
subcommittee, approved the bill but
suggested the wisdom of leaving the
present exemptions as they stand
$2,500 for a married couple, 1000
for single person and $400 for
dependent. The pending bill pro-
poses to reduce the exemption for
a married couple to $4,000 and to
raise exemption for dependent to |
$500.
Up to Full Committee.
Senator Cain said this was a ques-
ton that could be determined by
the full committee, but he spoke out
strongly of the justice of applying
the District income tax to persons
living here and using Washington's
facilities unless they pay back home.
'''If 1t Is fair for some $4,000 per-
sons who are domiciled here to pay |
the District income tax" he said, /
then 1t is fair for others living here
to pay also If their income is not
taxed In their home States. If this
cannot be done. then it, is my view
that the present District income levy |
should be repealed entirely"
He commented that his State,
Washington, has neither an income
or an Intangible tax, but he said he
was motivated by his study of Wash
ington's financial needs and the
Justice of requiring those using
Washington's facilities to pay "a
fair share of the burden"
At its meeting this morning, the |
House District Committee also re-
ported favorably on two bills in /