Evening star., 1949-02-16
D. 6. Tuxes
Continued From First Page.l

FURIOUS 10 Cne economy Oh the
District. This was taken to be an
objection to loading the extra
revenue burden either on real
estate owners or by merely jump
ing the rates on the Districts in
come tax which now is applied to
only a relatively small number of
potential taxpayers who are dom
giciled" here.
3. No other new source of reve-
nue. would supply sufficient reve-
nue. or match the sales tax return
4. The tax is peculiarly suited
to the economic characteristics OF
the District
S. The tax probably will be
less burdenSome" than any other
levy of similar magnitude.
Asks Broader Income Tax.
The Board of Trade repeated
it's almost annual recommenda-
ton that the city's income tax be
broadened to apply to all persons
who reside in the District. mean
ing it's application to the income
earned here of all persons who
claim they are domicued else
where, as we'll as to the income
Of those who accept the District
as their home.
But he explained the board had
turned to the sales tax as the only
practical solution because 1--WE
recognize that the history of in
come tax legislation for the Dis
trict leaves no room for optimism
respecting the chances Of passage
OF typical State income tax law
here"
Tax Exemption Delayed.
The trade group agreed with the
Commissioners that the urgent
need for much more money IN she
fiscal year beginning July~1 anaases
it necessary to postpone For a
year the plan to exempt from the
income tax net returns up to
$1,000.
1t had been planned to make
this effective next December 81,
but the Commissioners are asking
the change be delayed a year.
This postponement is estimated
TO save" $1,900,O00 in the COM
ing fiscal year.
The Board of Trade deferred
judgment temporarily on. another
feature of the Commissioners
1850 revenue plan-the reduction
from $4,000 to $4,000 in the ex-
emption for the 5 per cent income
tax levy on unincorporated busi-
nesses. This broadening of the
base for this section of the income
law is estimated to bring in an
additional $1.200.000.
Federation Supports Tax.
Support for the sales tax was
voiced by two spokesmen for the
Federation of Citizens Associa-
tions. They were Vernis Abscher
chairman of the Federation Fiscal
Affairs Committee. and Clifford
H. Newell, past president of the
federation.
Mr.. Abscher reported that the
federation approved the proposed
revision of the District income tax
to apply it to all persons main
tanning a place of abode here for
at least seven months of the year
and to raise the basic exemption
to $4,000. The federation also is
calling for a substantial increase
| in LIQUOR taxes and a higher Fed
eral payment.
Mr.. Abscher said the Federation
is opposed to any increase in either
the rate or assessment for rea]
estate.
! Mr.. Newell said there were many
items in the pending budget that
ought to be eliminated. He sug-
gested that the $554,000 for the
Zoo be taken off District costs and
that the Park Police should be paid
from Federal funds.
/ The size of the Federal payment
Mr.. Newell said, should be raised
! to 6.000,00O-a figure he sale
would about be amount the Fedora
Government would pay in rea
estate taxes on its holdings here
if they were taxable.
On the other side of the prob
lem, Miss Sally Peek, who testified