Evening star., 1948-05-30
D. {. Fiscal Bills
To Be Pushed as
|DeddIine Nears
ToiIoring Of Budget,
Tax Proposals Due
For EorIy Attention
By Don S. Worren

Vital District budget and tax bills.
along with batch Of other city
are expected to be pushed
this week in race with adjourn
ment.
In addition, the Auchincloss bill
for an elected and reorganized Dis
trict government may be given an
other hearing in the House this
week or next.
Even with House passage. how
ever, the District charter measure
was given only miracle" chance
of Senate action by this Congress,
because of the late hour and posi-
bilities of a Senate filibuster
The Dworshak Subcommittee Of
the Senate Appropriations Commit
tee is scheduled to decide Tuesday
how much should be cut off the
1a49 District supply bill as means
of meeting impending deficits.
S1.60O,o00 Cut Expected.
A cutback of at least $l.600,000
from the s101, ,165. 900 granted by the
House has been expected. The
Dworshak group had scheduled
meetings for last Friday and yester-
day but other business interfered.
The bill now is scheduled for a
report Tuesday, with Senate action
expected before the end of this week.
Senate decisions as to a budget
cut and several other steps to lessen
the size of city deficits will pave
the way for action on the city's new
tax bill.
AS now planned this calls for a
two per cent retail sales tax coupled
with a drastic revision of the per-
sonal income levy so as to exempt
incomes up to $4,000 and to apply
the resulting high level" tax to all
persons maintaining "a place OF
abode" here for seven months or
more of the taxable year.
The tax now is limited to only
SO, 900 out of a possible 100000 tax
payers, by exempting the Govern
ment salaries of all persons living
here but claiming State domicile.
Informally Approved.
Members of the Fiscal Subcon-
mittee of the House District Com
mittee, headed by Representative
Bates, Republican. of Massachusetts.
already have given informal APP
proval to the sales tax-high income
levy plan. Chairman Bates has
been delaying action until some
final decision on the spending pro-
gram was in sight.
The sales tax, under his plans.
would take effect in July OF next
year, unless Congress orders Gov
ernment pay raise now. In that
event, Mr.. Bates has agreed the
sales levy would have to be put into
effect July l of this year.
Even with or without a govern
ment pay raise, which would add
$1,000, 900 or more to the city's pros
pective deficit, Mr.. Bates has con-
tended, the District will need
limited loan to finance some OF
the more pressing school construc-
ton projects.
He has planned to delay the loan
proposal, however, until the next
Congress, assuming that other steps
could be taken now to solve the inn
mediate crisis in city finance.
Tax Action Conjectural.
The House District Committee Is
scheduled to meet Thursday to act
on the unfinished business on It's
calendar. Whether any tax program
recommended by the Bates Subcom-
mittee will be ready for action then
was conjectural last night.
Members of the House and Senate
Fiscal Subcommittee, which have
been making a joint study of the
revenue problem, have been pressing
for quick action, since failure OF a
tax bill would mean sharp in
crease in District realty taxes. Pass
age of the record breaking budget
along with a possible government
pay raise, but without new city
revenue bill, it has been calculated,
would skyrocket the property tax
rate from 50 to about S255.