Evening star., 1948-04-15
Par|eys on DC.
Budget Indicate
Increased Taxes
Dirksen Is Urging
Middle Ground on
Economy, Spending
By Don S. Worren

Increased District taxes for the
next fiscal year now appear more
certain than ever as a result OF in
formal conferences between lead
ers of congressional committees on
District legislative and budget AZ
fairs.
A sort Of middle ground between
economy and spending Is being
urged by Chairman Dirksen OF the
House District Committee. But he
told reporters late yesterday he be-
lieved District sales tax was "un-
avoidable."
Just what form the new city tax
burden would take remains to be
determined. There is strong pres
sure in both the House and Senate
District Committees for a 2 per
cent general sales tax, as recon-
mended by the Commissioners. Yet
to be convinced, however, is Chair
man Bates of the House District
Fiscal Subcommittee, in charge OF
city revenue measures. He opposes
sales levies as least desirable
form of taxation"
Dirksen Confers With Heran.
Chairman Dirksen, once an oppo-
nent of sales levies, discussed budget
needs with Chairman Horan OF the
Appropriations Subcommittee writ
ing the 1949 city supply bill. He
said he found evidence OF the need
for increased taxes.
For one thing, he noted that a
"record crop of children" soon would
be knocking at the doors OF city
schools, already overcroWded. "Ac-
commodations simply must be pro-
vided for these children he said
"a look at the vital statistics in
dicates we must begin our plan
ming now"
At the same time he agreed with
Fiscal Chairman Bates that the new
revenue program should not be so
broad as to serve as an incentive
to unnecessary spending" He said
he agreed on the thought that the
increased District tax burden should
be no higher than necessary to meet
established fund needs.
Bates Prepares to Act.
Mr.. Bates promised to go into the
revenue problem as soon as the
House had indicated the size of the
city appropriations for the year be-
ginning next July l. The Horan
budget hearings may be concluded
this week.
The revenue committee leader
however, said he could not go along
with the spending spree" proposals
he had noted in declarations by
Budget Chairman Koran. Mr.. Bates
repeated his insistence that the APP
preparations subcommittee cut about
s200O,O00 from the pending budget
which calls for record outlay OF
nearly $1O2, 100000. And he advised
again that this group heed the ad-
vice OF the Board of Trade to hold
general fund permanent improve
ments to an annual $8,000,000 level.
Revenue Solution Predicted.
After comforting with District
Chairman Dirksen, Mr. Horan said
he was satisfied the revenue problem
would be solved. He indicated he
would plan a l949 spending Dill
biased on needs" and leave to rev.
enue unit the problem of providing
necessary additional taxes.
Study of the tax problem is eX-
pected to be reactivated soon with
the return to Washington next week
of Chairman Cain of the Senate
District Fiscal Subcommittee.
The Koran Appropriations Sub
committee considered the budget
requests of Gallinger Hospital dur
ing it's executive session this morn
ing.
Afterward, Mr.. Horan explained
that the budget was discussed in
some detail, but he did not disclose
any results of the hearing, The
subcommittee was to resume its
executive session this afternoon on
further estimates for the District
l.