Evening star., 1948-05-22
LEADERS Agree
On Sales Levy
But Not on Date
Botes, Long Foe Of Tex,
Sees 1t Needed July ]
I'D. c. Pay Is Boosted
By Don S. Worren

Leaders of the Congressional
Joint Committee on District Fis-
cal affairs today agreed on the
necessity of imposing 2 per
cent sales tax on the city-but
were not in agreement as to
whether this should be effective
July l next or in the following
fiscal year.
Their problem, they explained,
was snarled by uncertainty whether
Congress is going to enact pay
raise now for Federal and District
government workers. If it does. it
will make a difference of about
$8,00O,000 in the size of the city's
deficit which must be met in the
year beginning July /.
Chairman Cain of the Fiscal Sub
committee of the Senate District
Committee was in full agreement
with Senator Dworshak, Republican
of Idaho, who is in charge of the
city's budget, on the necessity OF
sales tax beginning now.
The third member of the joint
conference, Chairman Bates of the
Fiscal Subcommittee of the House
District Committee, was not willing
to recommend a sales levy now
unless Congress orders the Gov
ernment pay raise. He did agree
it would be needed at least by the
following fiscal year. Mr.. Bates has
long been a foe of the sales tax.
Three Other Major Steps.
All three. however, were in agree
ment that at least three other major
steps must be taken now to meet
the city's deficit which already
amounts to about $5,500,000. These
include:
l. A reduction of $l.600,000 in
the record-breaking S10l, ,l64,90O
budget, now awaiting final action
by the Dworshak subcommittee Of
the Senate Appropriations Com
mittee. To accomplish this, the
group indicated, it would be neces-
sary to defer until the 1850 fiscal
year some funds for permanent i'm
provements.
2. To sell all of the remaining
securities in the public works in
vestment fund, built up during the
war, amounting to about $1,000, 900.
These funds would be turned to
maintenance and operation costs.
3. To make available for main
tenance and operation purposes
about $1600000 of funds appro-
priated or to be appropriated for
permanent improvements in the
1949 fiscal year. but which, city Of
ficials estimate. will not actually
have to be spent for such projects
in the fiscal year beginning July l.
These funds are called cash carry
overs
Realty Tax Boost Possible.
A possibility that the tax rate on
real estate and tangible personal
property might have to be increased
by 10 cents or so was kept in the
picture. The leaders of the joint
committee so far are not actually
recommending this.
But they believe that If Congress
should enact a Federal pay raise.
its effect on District government
payroll costs would require that a
needed layer of revenues would have
to come from either the suggested
ST 100000 cut in the pending budget
or from a direction to the Commits
sioners to increase the property tax
rate sufficiently to raise about tho
same amount.
If there is a Government pay
raise, also the group is in agree
ment that an effort should be made
for a 81 100000 increase in the Fed
eral payment toward District costs.
The general fund Federal pay
ment now is $11 ,000,0 900. Or about II
per cent of the Districts general
fund costs. The three legislators
agreed, ii was said, that the Federal
Government would have no know
ing intention of beneflting from
an additional Government tax bur-
den it imposed on the city. They
had before them rough estimates
that Government pay raise
arproximating $500 year would
{ Co..