Evening star., 1949-04-07
HomeR Rule,
Sales Tax Await
Senate Action
Bills Foce 6ottIe
When Time Is Found
To Debote Issues
O. pcn s Marren

~ 1s h&2F R&AkF@a A&A2&- - : ~
Sues before coaST~Ss nov ars
AWAITING Aciloa by tAe ox~
sammed Senate hoaae rS4la
measure and the slEaoo 900 srs-
raue bill. trscladsRg . sales iax.
While both measures favegAaly
BY The Senate Distract
Committee taee A4arp contests
IN Senate debate. GhetF S>ansags
express confidence they ALL pass,
One ot the principal hurdles :oE
both IS 10 md enough time On
The crowded Senate calendar 10
debate the eillA
Both measures we're reported by
the Senate District Committee
Tuesday night By Eccd margins.
but with the promise Of active
from Q fcw members
Of the group
House Rill Changed.
Changes we're written into the
House passed revenue bill. not
only 10 modify the effects O! ths
> per cent sales tax, but 70 tn
crease liquor and cigarette levirs
TO make up for the prospective
cuthackS in the sales tax
The committee, In reporting the
tax bill by a T-to-t vote, preserved
the body Of the House measure
but tempered the sales tax by
ordering the exemption Of res
taurant meals costing up 10 81 so
and Of all drugs and medicines,
instead Of only those prescribed
by physicians
In making these changes, how
ever. the Senate Committee added
10 the House bin q so per cent
increase in District taxes on liquor
and fortified wines. including
natural sparkling burgundy. = 100
per cent increase In the ao-cent- A.
barrel tax on beer. and left all
alcoholic beverages also subject 10
the per cent sales tax,
CtEarettf EXCISE Tax.
In addition. the Senate Com
mittee added q special excise tan
of / cent q pack. but II exempted
cigarettes from the sales tax,
Senator Margaret Chase Smith.
Republican. of Maine. took the
lead IN pushing through the
exemption of all drugs and
medicines. Senators Mccarthy Of
Wisconsin and Mundt Of South
Dakota. both Republican, led the
move TO step UP taxes on the liquor
trade.
District Committee Chairman
Mc0rath proposed the exemption
OF restaurant meals up 10 81 so.
II this were not done. he indicated.
the bill would discriminate against
persons forced TO eat all their
meals out.
The home rule bill was approved
by the District Committee an
s-to-l vote. 1t includes one major
change from earlier Senate drafts
"a proposed fixed formula for
measuring the size OF the Federal
payment toward National Capital
costs.
Increase 20 $4,000, ,oeo.
This would be 20 cents on each
dollar Of District tax revenues,
For the fiscal year beginning July
| this would mean a total payment
OF about $4,000 900. compared
with the present si2. 900 900.
While the tax bill would produce
enough money 10 meet the I'M
pending $4,000 900 deficit. they
indicated. Il would not cover the
costs of the many building pro-
grams that await financing.
To provide for these the Senate
committee, on the motion OF
Chairman Mc0rath. wrote into
the home rule measure a provision
that any current surplus OF funds
resulting from the fiscal formula
must be set aside IN q special fund
to be used for the construction or
repair OF school buildings.
Home Rule Bill Provisions.
The home rule bill nov calls for
council of II members. nine 70
be elected on q eity-wide basis
and two to be named by the Pres
ident TO represent Federal inter-
estS. II also would provide for q
eouncil-appointed city manager.
reorganization OF the District gov
eminent into IL departments and
an elected Board Of Education Of
seven members.
Legislative proposals Of the
council would become Law unless
vetoed within Is days By both
House and Senate. or vetoed with-
in another 10 days by the Presi-
dent.
Alexander b. Hawes Of the Wash-
ington Home Rule Committee to-
day praised the nsw provision IN
the home rule bill for fixing tho
Federal payment. and also CON-
inended the requirement that both
Houses Of Congress. rather than
one. may veto city council leg!ala-
ton.
I think these arc great improve
ments over the original bill. Ar.
HaweS declared. Wed like 70 20
further. Of course. since we have
bern seeking complete delegation
Of authority. but this Ia q step IN
the right direction.