Evening star., 1947-04-08

tlldb tllC oS2Hidh POoP1Ss 49, oAAAAS
should have the right to pass or
details Of their permanent consti'
tuition.
Fiscal
Continued From First Page)
bills with an expected yield Of SIT.
10000, provided the city heads
stick to their earlier decision not te
press for the amusement and util-
tiles bills levies.
I'VE believe the yield Of all the
taxes the Commissioners have pro.
posed will exceed their estimates by
several million dollars" Gen. Nc
Coach told the committee. 1--WE be.
lieve that the tax program should
be one that will yield about $10,-
100000 in a full year"
Presents Three Plans.
Should this not prove enough, he
continued, the city heads coulo
make up any shortage through the
sale of all or part of the city's war
time invested surplus.
The general, a former District
Engineer Commissioner. presented
the committee three plans for rails
ing the s10,000,000. These were:
Plan /. Adoption of the Fedora
payment formula, broadening ths
income tax, including tax on I'm.
incorporated businesses; doubling
the liquor taxes and the sale o1
81 SOC, 900 in invested surplus.
Plan 2. The income and liquor
taxes plus a / per cent sales tax ano
the sale of 100000 from invested
surplus. This assumes failure Of
the Federal payment formula.
Plan 8. A 2 per cent sales tax
which the board estimates will yield
at least $12,000,000 a year. This
assumes failure of both the Fed
cral payment formula and the in
come tax extension.
Eight Million for Building.
The board estimates included pro-
vision for spending $8,0o0,0 900 a yeal
for new construction. In the event
this proves insufficient, Gen. Nc.
Coach suggested either special ad.
ditional Federal payment or linn.
tied borrowing from the Treasury.
Turning from the general func
to the highway fund, supported
chiefly by the gasoline tax, Gen. Nc
Coach indorsed the proposed 1-cent-
per-gallon increase proposed by the
Commissioners and the boost in
annual auto inspection fees from sc
cents to 81.
However, instead of indorsing a
permanent 1-cent increase, he pro-
posed that the Commissioners be
given authority to restore the levy
to its present 3 cents per gallon
should highway fund receipts &C
100000 over estimated expendi-
lures.
He asked that this fexible-rate
provision allow the city heads to
boost the tax to 4 cents again
whenever the balance falls below
81 900 900 in the fund.
d. C. Not Highest Tax City.
Supporting his tax discussion with
numerous charts, the former En-
gineer Commissioner admitted te
the committee that Washington /:
not the highest tax city in the
country.
In nearly every other jurisdiction
he pointed out, industry, which is
the largest employer, pro-
vides very significant proportion
of all tax income.
In Washington" he said, "the
amount of the Federal payment Will
in no way compare with the revenue
which would be received from g
private employer on the same scale.
The Federation's tax program q.
introduced into the record by Mr
Armstrong also included indorse-
ment of the McCarran bill to create
a public corporation to operate thu
city water system.
The water fund section of the
Commissioners money raising plar
contemplates charging both Fedora
and municipal governments for thu
water they now receive free and fol
borrowing some $22, ,000, 900 from the
Federal Government on a long tern
basis.
No Change In Administration.
1t does not, however, contemplate
any change in the administration oi
the system, as does the McCarrar
bill.
Mr.. Armstrong presented the com.
mittee a brief historical review oi
Federal-District fiscal relations ane
observed:
att appears that each financia'
crisis in which the local govern.
ment has found itself was the direci
result Of the failure of Congress ts
make adequate payments for the
municipal services rendered to the
United States Government proper
ties over a period of several years
preceding.
Both Mr.. Armstrong and Gen
McCoach said they believed in 8
higher Federal payment than Youle
be provided by the proposed for
mula, but they agreed upon 1t as
good starting point.
First witness to take the. stane
today was Milton S. Kronheim
wholesale liquor dealer. who urged
reduction in District expenses. Mr.
Kronheim predicted that enactment
of many new taxes would drive peo'
pie to jurisdictions where the levie'
were lower.
Gen Mccoach placed . corsid'