Evening star., 1948-06-02
Joint Unit Votes
Sales
And Big Incomes
Combination Plan
Would Hit Those
With $4,000 Net
By Don S. Worren

A combination sales tax and
high level" income tax for the
District was approved today by
the joint fiscal subcommittee Of
the House and Senate District
Committees.
The measure, estimated to bring
in at least $6500, 900 in the first year
of it's operation, would 60 in effect
July If Congress passes a Govern
ment pay raise bill, or a year hence
if the pay bill is shelved.
The proposed high level" income
tax would apply to all persons hav-
ing net incomes above $4,000 and
maintaining place of abode" here
for seven months or more Of the
year. Specific exemptions would be
elective officers of the Government,
including members of Congress, and
presidential appointees who are sub
ject to Senate confirmation.
The sales tax would be 2 per
cent tax on all purchases here ex-
cepting food for contemporaries
consumption, medicines and other
goods already covered by special
taxes.
The s6,5ooOoo is needed to cover
impending deficits.
Full Committees to Meet.
The combination income and sales
tax bill was ordered reported favor
ably at session attended by Chair
man Bates and Representatives
Talle. Republican. of Iowa, and
Smith, Democrat, of Virginia. of the
House section of the joint fiscal
group and Chairman Cain of the
Senate, branch of the joint fiscal
subcommittee. Other members of
the two groups have indicated ac-
ceptance of the bill in view OF the
Districts financial straits.
Approval of the measure is to be
asked at meetings of the full House
and Senate District Committees,
now scheduled for tomorrow morn
ing.
Some minor differences between
the bills as reported to the two Dis
trict Committees are expected to be
settled. After passage of the bills
by the House and Senate, the meas
ure then would 60 to conference.
AS the legislative process works
out, final action might be taken IN
the last few days of this Congress.
allowing time for final decision by
Congress as to whether there Is to
be a Government pay raise which
would increase the size of the pro-
spective District deficit by upwards
of S7,O00,000
Details Are Studied.
Members of the joint group de-
voted some time in today's session
going over many of the details of
the provisions of the bill Sitting
with the group were Thu mas Hen
derson, assistant counsel to the Sem
ate committee; Corporation Counsel
Vernon E. West, and William Press,
executive secretary Of the Board Of
Trade.
Meanwhile, somewhat reduced but
still record breaking budget for the
year beginning July was to be
placed before the Senate Appro-
priations Committee late today by
the Dworshak subcommittee.
This subcommittee, it Is indicated.
is recommending that the House,
proposed outlay of $10l, ,l65 900 be
reduced by about 81, 5000 This Is
one step suggested as means of
meeting the impending $500, 900
deficit next year.
Other steps proposed include sale
of all the remainder of the Districts s
wartime capital investment fund and
the diversion of some improvement
appropriations to operating ex-
| penSeS.
Senate action may be taken later
this week on the District budget.
Any changes made on the Senate
side would require acceptance by the
House. Chairman Horan of the Dis
trict Subcommittee of the House
Approximations Committee has in
dicated he will accept minor changes
in the interest OF an agreement on
new revenue program.
| In adopting a revenue bill, there
may be fight in the House Dis
trict Committee over adoption OF
a sales tax. Representative Klein.
Democrat, of New York, already has
reacted with bill to meet the Dis
trict's deficits by boosting the per-
sonal income tax rate and broaden
ing its coverage to include all per-
sons resident in the District for
seven months or more of the year.
i The latter move has been aban-
doned by District Committee leaders
as a practical impossibility. since
Congress last year knocked down a
(See D. C. FISCAL, Page A-4)