Evening star., 1948-01-13
Studies Of D. {. Tax
And Budget Problems
Under Way on Hill
By Don S. Warren

Studies of both tax and budget
problems of the District are under
way today on Capitol Hill, but hear
ings are not expected to be ordered
until after March l.
Oficials of House and Senate
District groups in charge of revenue
and expenditure problems generally
were taking "let's see" attitude,
although some asserted general
sales tax seems indicated for prom
tnent consideration.
Representative Bates, Republican,
OF Massachusetts,, who heads the
Fiscal Subcommittee of the House
District Committee, said he is ready
to consider any and all sources OF
District revenue. To this he added
4. hope that the record -breAking
budget of more than $101 600, ,000-l
$4,000, 900 above anticipated revenues
for next tyear-can be cut.s----=sssss's'-rI
as,Reviews Revenue Picture.
Mr.. Bates, who Is already review
ing the District revenue picture and
who plans a more detailed study OF
how the l947 revenue act is work
ing, said his group may schedule
hearings during March or April.
Asked for his reactions to the
proposed $6,OO0,000 increase in the
budget over this year, Mr.. Bates
commented that the proposed lS49
outlay is more than twice as great
as total costs of the District only
10 years ago. Congress, he said,
must ascertain the reasons Tor
such a. rise in costs.
The chairman of the companion
subcommittee on the Senate side,
Senator Cain, Republican, of Wash
ington, likewise said the first re-
sponsibility of Congress is to de-
termine "how many dollars will be
needed"
To Consider Sales Tax.
Senator Cain added that he and
the Senate District Fiscal Sub
committee will examine the budget
to learn what cuts might be made.
A sales tax, along with any other
revenue plan, he continued, will be
considered when the time comes.
"I don't want to see any addi-
tional tax imposed on the people
unless it is absolutely necessary
the Washington Senator said.
The most positive view came
from Representative Koran, Repub-
lican, of Washington, who heads
the House Appropriations Subcom-
mittee which will write the Dis
tricts appropriation act for the
year beginning July l.
He issued a statement saying he
still believes enactment of the sales
tax "is the only solution" OF the Dis
trict's finance problem.
Noncommittal on Sum.
Mr.. Horan said he could not say
whether the District budget as sub
mitted by the President should be
increased or decreased. He said he
Is convinced, however, of the need
Of raising more revenue for the Dis
trict and that Congress should act
on this problem this year.
In renewing his call for a sales
tax, he said he would leave to the
District Committee the decision as
to when and If the District income
tax on individuals should be abol-
ished. Senator Cain has bill pend
ing before the Senate District Com
mittee calling for repeal Of the per-
sonal income levy.
Chairman Horan listed several
items in the budget which, he said,
demand scrutiny in advance OF ap-
preparation hearings.
Includes School Construction.
Among these, he said, are school
construction, which must be pushed
as quickly as practicable; Gallinger
Hospital and other similar institu-
tions, facilities for handling patients
who may be discovered in the pres
ent mass tuberculosis case-finding
program, and more efficient and eco
nomical grouping Of District police
forces.
With regard to Gallinger Hos
pital, Mr.. Koran said: II have seen
no evidence that the troubles in
that institution are the result of any
failure on the part of the Congress
to appropriate adequate funds
However, If the required improve
rents for making the hospital a
credit to the Nations Capital indi-
cate a need for more money. shall
be glad to give full consideration
to any reasonable request"
He complimented the District on
making a number Of improvements
In the last year. He said he was
pleased at the speed with which
the recorder Of deeds carried out the
instructions Of Congress to modern