Evening star., 1948-05-07
Called
On Proposal for
D. Sales Tax
Views on Other Wuys
Of Raising Revenue \
Also to Be Sought
By Don S. Worren

Chairmen Bates and Cain ot
the House and Senate Fisca !.
subcommittee of the District
today agreed on the urgency of
settling the city's revenue prob
lem and scheduled public hear
ings for next week on proposals
for sales tax.
The hearings will be held Wednes-
day and Thursday at 10 am. in the
Senate District Committee room.
Decisions on this step we're
reached at a conference this morn
ing between the chairLlen of the
two revenue subcommittee. They
announced that the hearings on
the sales tax carried no commit
ment by them, as yet, on the type
Of new taxes which must be raised
by the District to balance next
years record-breaking budget Of
s10l ,l64 900.
One OF the main purposes of the
hearing. to be held jointly by the
TWO subcommittee. their spokes-
men emphasized, was to determine
the method of meeting the revenue
shortage and whether the proposed
sales tax was the best way.
- ,,-. Cain to Offer Bill.
AS a preliminary, Senator Cain
will introduce in the Senate Mon.
day companion bill to that spon-
sored in the House by Chairman
|
Committee for general retail
sales levy.
AS now written, this calls for a
z per cent rate, exempting only
medicine and groceries. but not res
taurant meals, and items selling for
IA cents or less.
Should the sales tax be finally
recommended, Senator Cain said
there undoubtedly would be changes
made in the bill
Senator Cain Is regarded as an
advocate of the sales tax as the
only adequate means by which the
District can solve its future revenue
problems. Representative Bates has
opposed sales levies and repeatedly
has insisted such legislation should
be enacted only as a last resort"
Long Series of Delays.
The conference ended a long
series OF delays over the question
OF whether tax measures for the
next fiscal year beginning July /
should be held up until Congress
enacts the city's appropriations for
that year. or whether the budget
should be delayed until Congress
| decides how much revenue will be
available.
Decision to go ahead promptly
with the revenue problem turned on
an agreement today by the two
chalrmen that the whole finance
situation now required that action
be taken as soon as possible.
The House passed the appropri-
alton bill this week without chang
ing a single item. Senator Cain
and Mr.. Bates were convinced this
morning that the Senate would
make no major changes.
1t was agreed that the District
faces the necessity of raising sew
eral million dollars of additional
revenue and that the only real
prospect OF change would be the
enactment of Government paw
raise which would add additional
millions OF dollars to the city's
deficit.
S4,5O0,000 Deficit in Prospect.
AS the financial picture now
shapes up, the prospective deficit in
the next fiscal year is estimated at
about $4500,000. Passage of a paw
raise for Federal and District work.
ers is estimated to add between
S6,000,000 and 100000 to the rev.
enue gap.
The House Senate Joint Fiscal
Subcommittee held hearings weeks
ago on the revenue needs. They
have been recessed to await House
action on the budgr .. A special
hearing on sales t" proposals had
been anticipated since the details
had not been considered at the
earlier hearings.
Pending before the Joint subcom-
mlttee is bill by Senator Cain to
repeal the Districts inequitabie per-
/ sonal income tax, which is applied
to about $4,000 out of a possible
100000 taxpayers.
The group also has in its files
earlier proposals for possible other
revenue measures, such as increased
taxes on liquor. cigarettes, amuse-
ments and utility bills. Under pres
ent law, If Congress passes the pres
ent budget and fails to enact new
revenue measures, the Commission
ers would be required to raise the
tax rate on real estate and tangible
personal property to met any deficit.
The realty rate was raised this year
from SITS to So and realty assess
ments were boosted 20 per cent.
Attending the conference were
Thomas Henderson. tax assistant to
the Senate District Committee,
Budget Officer Walter L. Fowler, and
his assistant, william G.. Wilding.