Evening star., 1948-05-13
Drive for Broadened
District Income Tax
Barred This Session
Subcommittee Considers
Plea for Bond Issues
Instead of SoIes Levy
By Don S. Warren

Proposals for broadening the
base of the Districts personal
income tax cannot be adopted
in this Congress it was agreed
today by members of the House
Senate Joint Fiscal Subcommit-
tee considering means of meet
ing a heavy city revenue deficit.
A number of witnesses at hearings
on a proposed 2 per cent retail sales
tax, regarded by many as the only
practical solution at this time, de-
nounced the income levy as discrim-
inatory because it exempts all but
88 900 of a potential 100000 taxpay-
ers on the ground they are not
legally domiciled in the District
though living here.
Chairman Cain of the Senate Sec
ton of the joint committee agreed
the present income tax was inequit-
able, but he told the witnesses:
Congress considered broadening the
of the income levy last
year and said no in no uncertain
terms"
Chairman Bates of the House Dis
trict Fiscal Subcommittee put it in
stronger terms: The facts are, we
took a trouncing."
Smith Sees Future Effort.
Representative Smith, Democrat
of Virginia, another member of the
joint group, voiced full agreement
with his colleagues that another
effort might be made in some future
year but that it could not be relied
on in the remaining few weeks Of
this Congress.
Considerable attention was giver
today to the suggestion advanced by
Mr.. Bates that bond issues o
reasonably limited size be author.
lied for the financing of selected
capital improvements, such as schoo
construction. He contended it woule
be equitable to spread the cost o.
such Improvements over long tern
instead of laying the whole cost or
current tax payers. II this Is done
he contended, it would free con-
siderable current revenues for mu.
nicipal operations.
Several witnesses today urged {
higher Federal payment as beine
justified by the huge amount of Dis
trict land taken out of taxation fol
Federal use, and as one means O.
lessening the need for sales tax.
Candy Spokesman Object.
Also, the committee heard spokes
men for candy and chocolate manu-
facturers contend that their prod
ucts should not be subject to sale
tax if other food products are to b.
exempted These arguments wer'
made by Robert c. Hill and Charlie
F.. Scully, for the National Confec
TONERS Association, and Gordol
Peyton for the Association of Coco
and Chocolate Manufacturers.
| The sales tax plan was attacked
and defended by various witnesses
C. F.. Preller, for the Central Labo
Union, AFL, spoke against 1t as lay
ing hardship on persons in th'
lower income groups.
Opposition also was expressed b.
DR.. Dewitt Eldridge, George Wash
ington University professor and I
member of the board of the Wash
ington Committee for Wallace fo
President: Benjamin c. Sigal, presi
dent of the Washington Chapter
Americans for Democratic Action
and Vincinet Brown. representing
the District branch of the Nationa
Association for the Advancement O.
Colored People.
! DR.. Eldridge said alternatives to &
sales tax would include bond issues
small increase in the personal in
come tax rates. plus broader cover
age of the levy; reassessment o1
| (See SALES TAX, Page A-4J