Evening star., 1949-03-15
Sales Tax Defeat
Threatens New
Budget SIashes
House Action Storts
Desperate Search for
Revenue Formula
By Don S. Worren

-
By Don S. Warren
Alternatives to a retail sales tax
killed by the House late yes
terday-were being sought desper-
ately today at the Capitol to
balance the District budget and
give city workers their delayed pay
raise.
Fears were voiced that, unless
some acce- table new formula can
be found, there may have to be
even further slashes in the 1850
budget, already reduced to bare
bones level.
In the search for new revenue
possibilities, talk at first centered
on proposals for a sharp increase in
realty and personal property taxes,
a broader income levy, a big jump
in liquor taxes and an appeal for
an increased Federal payment.
176-166 Vote.
The Districts SIG, 900 900 revenue
bill. with a 2 per cent sales tax as
its base, weathered sharp attacks
through more than five hours of
House debate yesterday. But a last
minute upset. on a roll call vote
on final passage. after it had sur
vived two earlier test votes, scut-
tied the sales tax by a count Of
176-166.
House members who had been
elected with labor and liberal
group support. many of them
freshmen in Congress, contributed
largely to defeat of the sales levy.
Their spokesmen were jubilant
over their victory. They had called
the sales tax unjust, discrimina-
tory. regressive, nefarious, iniqui-
tous and measure that would
bear most heavily on the poor.
For the time being, however,
the defeat of the tax bill left Dis
trict finances, budget and pay
raises in a more uncertain predic-
ament than ever. There was no
present assurance new bill
could be reported from the Dis
trict Committee.
Ironically, one of the chief sub
stitutes proposed by sales tax op-
ponents was sharply slapped down
by the House yesterday before it
rejected the sales tax plan. This
was a motion by Representative
Klein. Democrat, of New York, to
substitute for the sales tax broad
new city income levy, with higher
rates, applying to most all persons
maintaining a place of abode"
here, regardless of State domicile.
This was defeated by a standing
vote of ITO to so.
Sponsors Dismayed.
In the hot remarks made by
some members as the House ses-
sion ended, there were sug.
gestions that finance leaders
on the District Committee resign"
or step aside" to let others as
sumo responsibility. These words
were softened later, but there still
were suggestions that the work be
lett to sales tax opponents.
Sponsors of the sales tax plan
were astonished and dismayed
over the sudden, last-minute de-
feat of the bill, which they had
perfected after weeks of intense
study of the whole city finance
picture.
They quickly put the RESPONSE
bility for some substitute program
in the laps of those who led the
fight to kill the sales tax.
Representative Smith, Democrat.
OF Virginia, chairman of the Dis
trict Fiscal Subcommittee, and
Representative Bates, Republican.
of Massachusetts,. ranking minor
ity member, both promptly de-
clared:
Let the members who voted
against the sales tax find the
money. It's their responsibility
now.
Challenge Accepted.
There are a lot of members
here who vote for all appropria-
tions and against all tax plans.
They killed the bill; let them find
the substitute"
The challenge was promptly
accepted by several members Of
the District Committee who had
led the fight against the sales
levy.
1--WE will flnds the money, all
right: we will find it easily" said
(Continued on Page, AS, Col. l.)
Snow FIIIrries