Evening star., 1948-03-22
D. G.. Fiscal
Continued From First Page)


ship. This covered every fourth
member, questionnaires being sent
to 2,162, on which there was .
37.9 per cent return, figure deemed
high enough Ito be conclusive" as
to membership sentiment.
OF those answering the poll 83.1
per cent voted for enactment OF a
sales tax If added city funds were
necessary. A breakdown also showed
66.8 per cent favored a 2 per cent
sales tax, coupled with repeal OF
the personal income tax.
Estimates of the receipts from a
District sales tax were based mostly
on experiences in New York City,
Baltimore and New Orleans, which
indicated the returns would amount
to roughly 1.6 per cent of the vol
ume of retail sales.
William Press, executive secre-
tary of the Board Of Trade, said
on this basis the receipts here
should run to about SIS ,000,0 900, and
that 1t was felt justifable to rely
on at least 80 per cent of this
calculation, or not less than $13,-
100000 for a full year Of operation.
Womens' Club Indorse Plan.
The recommendations of the
Board of Trade were generally in
dorsed by spokesmen for the Dis
trict Federation of Womens' Clubs
and the Federation Of Business
Mems Association.
Opposition, however, was regis
tered by Frank Reagan and Orville
.. Dick, for Columbia Lodge 174 of
the Machinists' Union, who pro-
tested that a sales tax would place
too much of burden on the work.
ing man and the poor.
Mrs. Harvey w. Wiley, speaking
for the Women's Federation, coupled
with Endorsement of the sales tax
a plea for dropping the personal in
come levy. She asked for, the exern-
ton of all items selling for Is cents
or less instead of the IA cent level
proposed by the Board of Trade.
Mrs. Wiley said sales tax would
produce q large amount of revenue
without putting severe burden on
any one group because all would
contribute something. She added
that the several million visitors who
come to the National Capitol each
year are responsible for some of the
costs of the city government, receive
benefits from city services and
should contribute to district reven-
ues, as they would through q sales
tax.
Businessmen Reverse Stand.
J. Nelson Anderson, general coun-
sci for the Business Mems Fedora
ton, said his group was reversing
its stand of last year in recon-
mending the sales tax. He sug-
gested repeal of the personal prop
erty tax. There would be no neeo
for additional taxes, he said, if the
Federal payment to the District
were high enough to be in keeping
with services the city renders the
United States and the amount ot
property tax exempt because it il
Federally owned.
While Mr.. Morgan was testifying
Chairman Bates of the House Dis
trict Fiscal Subcommittee brought
out that a 1-cent tax would be re-
quired on the sale of a ham sand
wich at small eating place. The
witness said this was the same as
in Maryland and that while at first
Maryland customers protested tax
on such items he had not heard
objections lately.
Mr.. Morgan said the effort was
to make the District sales tax pro.
visions as nearly parallel with Mary
land as possible. He assured Mr.
Bates the proposed District Law
would not be broader than Mary.
lands, but in fact, would be a Bit
less broad since gas and electricity
Sus here would not be taxed.
Repeats Stand on Spending Curb.
Mr.. Bates repeated his earlier
declarations for restraint in Distric
spending for capital improvement.
and said that's fine" when Gen
McCoach said the trade body wa
recommending an $4,000, 900 limi
each year on general fund, outlays
not including highway and waite
funds.
Gen. McCoach also said the Boar,
of Trade did not look with favo
on borrowing for permanent i'm
proves except where a positive nee,
was proved. In such a case, h
went on, the borrowing should b
"very closely scrutinized" with tn
loan to be authorized out Of annus
budget payments, and with ever
effort made to stretch such project
over q period Of years.
Chairman Bates voiced fear Of ex
travagance in the pending schot
construction program and won
promise from Gen. McCoagh I
make q personal study of thes
programs in connection with pre-
posed abandonment Of a number {
old school buildings.
!: Mr.. Bates declared 1t "just doesn
make sense for the District to b
abandoning older buildinbs, an
building expensive new schools q