Evening star., 1949-04-22
Johnston Fires
Opening Shot at
SaIesTax Plan
e Senotor Files Bill
For Bend Issues on
Copitol improvements

S~SAtEA ~R<stAksAA<AEs4 &ESssSNSAt CT
South Carolina has area hls arst
shoi AGAINST The proposed Dasirses
saiss tax ~gih q h.1 10 suthc.sss
the Commissioner Ia feat scaas
toH capital Improvements
The measure Nhea xers - Ire
DsstTset Committee Would restrict
the total bond gSkaes al any ere
tine TO rot more than : pr cent
of the assessea ealue q tAxAnls
real property IN tlae city
The District revenue hsil tn-
eludinE . pet cent xales tar.
now is On the Senate calendar,
awaiting action II ALREADY has
been passed es the Hease II IL
designed to ral~ about SIS 200 600
TO prevent oefeii In the coming
nscai wear. beginning July !
Exemptions Under RtFi.
Under the bill as amended ey
the Senate District Committee.
exemptions would include groceries
for home consumption, restaurant
meals up TO 81 so, eli medicines.
and such items As candy. bottled
soft drinks and crutehes and other
aids 70 the Handicapped
The meAsurx also would increase
the realty tax rate sy Is certs.
raise liquor licenSr fees and heser-
sRe taxes. put a special i-eent- per
pack tax on cigarettes and revise
the city's income tax,
Senator Johnston. q foe Of
both the sales tax and legislation
for Washington home rule. vas
TODAY 20 be rcShaping
his drive against the sales tax and
Soliciting support from its OPP
ponents. especially In the Dis
trict Committee.
Tells Of Minority Report
Senator FTeaT. Democrat. of
Delaware. who voted against the
city revenue bill including tho
sales tax when IL vas approved
by the Senate District Committee,
for the press some Of The
features contained in q minority
report. he said had been prepared
by Senator Johnston.
One OF the proposals TO which
he objected. Senator Frear said.
was the authority TO fsoat bonds
for capital improvements
When the bond prosiso vas
eliminated from the minority re-
port. Senator Frear said he signed
the report But later Senator
Johnston said the rest Of thu
minority report vas torn up and
would be rewritten,
Other Features In DRAFT.
Among the other features In
the original draft. Senator Frear
said. were:
An increase OF 30 per cent 90
more In the present Federal pays
meni u si2.ooo 600 towards city
expenses.
Virtual doubling Of District tn
come tAx rates. with extension of
the levy 70 salaries Of Federal
officials. who nov are exsmp. be-
cause they maintain legal resi-
dence In the States.
Increase In liquor taxes higher
than the 30 per cent raise recon-
mended In the present bill.
A ascent increase In property
tax rates here from the present
% rate. as compared 70 the Is
cent boost carried In the pending
bill.
The minority report. Senator
Frear said. opposed any sales tar
for the District.
The Delaware iawmaker tndi-
Gated he will not fight the present
revenue bill on the Senate floor.
He said he believes 10 wtil bs
passed by the Senate.
Johnston Gives Statement
When Senator Johnston intro
duced his bill for bond issues, hs
issued q formal statement In
which he said there are few
cities which have not from time
TO time borrowed money st low
interest rates 10 make needed i'm
Certainly" he added. mo city
40 large as Washington would
think OF waiting for the needed
school building or other puhilc
project until all Of the cash vas
In the bank. OF course munich
paiities as individuals can do too
much borrowing. but In my opin-
Ion the City Of Washington has
suffered from an inability 10 bor-
row money when needed for i'm
portant and necessary capital
projects"
.p--~s--==-~-~sae--~s--a----=---sssa-