Evening star., 1947-01-01
DC. Faces Staggering Tax Year
If Project Plans Are Approved
By Don S. Worren

This will be staggering budget
and tax year for the District if the
new Congress adopts ambitious rev.
enue and spending programs
mapped out by municipal officials.
A big bundle of other legislation
also is being readied for early con-
gressional study, but money will be
the main issue The final answer
on this will not only determine the
size of the 1947-8 budget. but will
have a dramatic effect on the
chances of other legislation many
groups earnestly urge.
A record -shattering budget will
be transmitted to Congress next
week by President Truman. On its
heels will come new revenue bills
that would lay an additional burden
of about sl9 9,000, 900 on District tax
payers-almost quarter of this
years outlay.
Backlog of Needs.
So great is the backlog of needs
of Washington's swollen population,
the Commissioners believe District
residents are willing to dig deeper
into their purses. But Washington
also is calling on Congress to meet
its own partnership obligations by
ordering big and continuing boost
in the Federal payments.
Adoption of record budget and
revenue measures is confidently ex-
pected, regardless of how economy
minded the new Congress becomes.
Key members Of both the House
and Senate Appropriations Com
mittees, though advocates of rigid
economy in national affairs, have
declared the District must find ex-
panded revenues. District prob
lens, they say, must be considered
as matter separate from national
affairs.
Just what will be the size and
form of the new taxes, however, is
another matter. A lively fight is
expected over some of the proposals.
The proposed per cent general
sales tax-which would bring in
the biggest portion of the extra
revenue-has won many new friends
in Congress. Representative Dirk
sen, Republican, Of Illinois, top man
on the House District Committee,
once opposed to this tax, has voiced
the belief Congress will accept it.
Sut it is facing concerted opposi-
tion from Washington labor and
veterans groups, among Others
Higher income tax levies have been
suggested as a substitute.
Federal Payment Front.
Washington presents a united
front. however, on the question of
boosted Federal payment. The
Commissioners are solidly backed
in their view this Is vital II the
District is to provide necessary
services and stay out OF debt.
Senator O'Mahoney. Democrat, of
Wyoming, in charge of District fund
bills in recent sessions of Congress,
led a successful fight last summer
to raise the old s6,000,00O lump sum
to $4,000, 900. This was a Stopgap
Seeking a permanent equitable ar
rangement, he joined with Senator
Overton, Democrat, of Louisiana in
DILL to adjust the, size Of the Fed
eral payment each year in keeping
generally with the amount of tax
free Federal land holdings in the
Capital. For this fiscal year the
formula would have called for the
United States to pay 19 per cent of
the total budget, instead of only
about 10 per cent.
Thousands of additional District
residents will be billed If Congress
okays the revenue measures. A vital
section of the plan would broaden
the income tax base to apply the
levy to those who now escape by
claiming they are domiciled or have
legal residence in one of the
States, although they actually live
in the District or earn their in
comes here Members of Congress
and perhaps certain other Federal
officers would be exempted, but not
the general run of Government
workers.
/ District officials warn that failure
of any maj jor link in the revenue
program necessarily means major
slashes will have to be made in the
budget. In fact. 1t will be far out
OF balance until Congress orders
increased revenues for the year be-
ginning next July /.
District suffrage questions will be
placed before the new Congress at
the very outset of the session.
! Senator Capper, Republican, OF
A