Evening star., 1948-07-18
Johnston Urges
Liquor Tax Boost
For DC. Raises
Proposes Increase
Up to 81 in Levy Now
At 50 Cents q GolIon
By Harold B. Rooers

By Harold B. Rogers
Increased District taxes on whisky
were proposed last night by Senator
Johnston, Democrat, of South Caro-
lima. to help finance pay raises pro-
posed for city workers here.
The present 50-cents-a-gallon city
levy should at least be doubled or, ii
necessary, raised to as high as 81 q
gallon, he recommended, provided
the tax be passed on to consumers.
Pointing out that Washington s
liquor tax was among the lowest in
the Nation, Senator Johnston pro-
posed the increase instead of en-
acting the sales tax bill pending on
Capitol Hill
Il am still strongly opposed to the
bill for sales tax and high-level
income tax, which may come up for
action in the Senate at the special
session, beginning July 26," Senator
Johnston declared.
1evenue Bill Was Blockade.
The city revenue bill, already ap-
proved by the House, was intended
to raise sufficient revenue to meet
the cost Of pay increases for District
Government employees. But when
the sales tax was blocked in the
Senate by Senator Johnston near
the close of the last session, legis-
lation for city workers raises died
with it.
The sales tax and high-level in.
come tax combination was tied to
q city deficit. Appropriations now
are barely balanced by revenue.
Senator Johnston still favors a
big increase in the Federal payment
towards District operating costs
He reiterated his suggestion made
to reporters at the Democratic Ma
tional Convention that the Federal
payment should be raised from the
present $12,000,000 to about $25,-
100000.
Senator Johnston's suggestion OF
Increased liquor taxes to finance
higher pay was made as an alterna-
tive to the increased Federal Gov
ernment payment, to meet the prob
lem if the higher contribution is
not authorized.
Promises New Fight.
Il am for the little fellow" he
declared, repeating the philosophy
under which he had fought the sales
tax to a standstill. II shall fight
that bill, not for hours, but for days
II it is called up on the floor, I shall
read every line of that big bill. ]
intend to 60 into the whole history
Of fiscal relations between the Fed
eral Government and the District
For years the United States con-
trihuted so per cent of the cost of
running the National Capital. Now
with the city budget about 500. .000,-
900 the Federal payment is only IL
per cent. 1t ought to 60 up to at
least Is per cent"
II there is resistance to the jump
10 IS per cent, Senator Johnston
said he would compromise for 20
per cent. But in any event, he still
insists that a higher tax on liquor
here should be considered, to bolster
city income.
In his home State, Senator Johns
ton said, the State whisky tax is
81 gallon, contrasted to the so
cents a gallon imposed by the Dis
trict
A Federal tax of SO gallon is
imposed on whisky sold everywhere
in the country.
License Costs Compared.
In South Carolina, the Senator
pointed out, wholesale liquor
license imposed by the State costs
$4,000, contrasted with the $l,500
price here. His State also takes
part of both wholesale and retail
liquor taxes, the Senator asserted.
At the District Alcoholic Bever-
age Control Board, an official con-
hrmed Senator Johnston's conten-
ton that the tax on whisky here is
considerably lower than in most
Jurisdictions.
Board officials have taken the
position in the past that too high
an increase in liquor taxes here
might tend to drive some of the
liquor business into illegitimate
channels, even to moonshine.
Sales of hard liquors. listed as
ardent spirits" have been on the
decrease here for some time al
though wine and beer sales are up,
official figures show. Wholesalers
particularly have been complain
ing that some distributors are on
the verge of bankruptcy.
If Senator Johnston's proposal
for higher liquor taxes should come
before the special session, observers
expect the liquor business to make
q desperate fight to kill it.
Liquor dealers strongly supported
a bill in the last session to set up
price control of alcoholic beverages
here, but the measure was blocked
on the House floor by Representa-
tive Crawford, Republican, of
Michigan. Opponents of the bill
contended it would result in higher
liquor prices.
Informal indications last night
pointed to a new attempt by the
liquor interests here to have their
bill brought up for action on the
House floor, during the special ses-
sion If it is called up, a lively
battle is anticipated.