Evening star. [volume] (Washington, D.C.) 1854-1972, 1949-01-30
DC. toAssiign
Budget Expert
ToHouseUnit
Assistant to West
Will Help District
Fiscal Subcommittee

VIII 7elP OIStTICt
Fiscal Subcommittee
The Commissioners have agreed
to assign an Assistant Corporation
Counsel to the House District Fiscal
Subcommittee soon to expedite
handling of the 1850 District revenue
bill, it was reported last night.
Corporation Counsel Vernon E.
West probably will be requested to
assign one Of his two fiscal experts,
Harry L. Walker. or George c. Up
degraff, to work with the committee.
The assignment will be made at
the request of Chairman Mcmillan
of the House District Committee
and Representative Smith of Vir-
ginia, chairman Of the fiscal sub
committee.
Speed Promised by Young.
Representative Mcmillan disclosed
last night that he wrote Commits
sioner John Russell Young last week
requesting assignment of a District
employe, we'll versed in the District
tax and financial picture, to Rep
resentative Smiths subcommittee.
Later, Chairman Mcmillan said
he discussed the request with Com
missioner Young over the telephone
and Mr. Young promised to act
quickly to speed action on District
rny0Y1,o 1ociclof ;o,,
1t was recalled that similar as
signments have been made from
time to time in the past so that
members of Congress could benefit
from the knowledge and experience
OF District monetary experts.
Hearing Tomorrow.
The second week of executive
hearings on the Districts record
breaking and unbalanced slO3,45l.-
600 budget will be opened tomorrow
by Chairman Bates of the District
Subcommittee of the House Appro-
priations Committee. Health De-
partment estimates will be taken
up, with Welfare Department needs
scheduled for examination later in
the week.
Fiscal Subcommittee of both the
House and Senate District Commit
tees already are at work on the
revenue problem, anticipating that
the 1850 deficit may range from
100000 to s180Oo0O0.
Chairman Hunt of the Senate
Fiscal Subcommittee Is to confer
tomorrow with Staff Expert Thomas
Henderson. to review the revenue
hearings of last year. He has called
meeting of his subcommittee for
Tuesday afternoon.
Seeks Action on Sales Tax.
Representative Smith who already
has provided members of his group
with q summary of last years rev.
enue data, has arranged for a joint
meeting with the Senate unit for
Wednesday afternoon.
Mr.. Smith is planning to seek
early action on the House side on
his bill to institute o 2 per cent
sales tax as the best available
solution" to the revenue problem.
He proposes only brief hearings in
view Of the extensive testimony on
the same subject taken last year.
Both Mr.. Walker and Mr.. Upde-
graft are thoroughly familiar with
the Districts financial problem.
Mr.. Walker did much of the work
on the sales tax bill that failed Of
passage at the last session of Con-
gress. He also was active in draw
ing up the revenue bills that will
be sent to Capitol Hill soon by the
Commissioners in an effort to
finance the District through fiscal
1850.
Part-Time Assignment.
The assignment would be on a
part-time basis, Mr.. Mcmillan said,
for brief period. The fiscal ex-
pert might only have to spend a
couple of hours a day with the leg
islators until they arrive at a COM
pleted version of the 1850 revenue
act.
Legislation scheduled to 60 to
Congress to finance the city's pro-
posed $103, 100000 budget, would:
Impose 2 per cent sales tax on
certain items such as restaurant
and bar checks, clothing, commodi-
ties, tools, furniture, liquor but not
on medicines or food bought for
home consumption.
Increase the basic District income
tax exemption to $4,000 from the
present $1,000 and repeal the
O'Hara amendment exempting the
salaries of Government employees
domiciled elsewhere.
Double the present tax on liquor.
Lower the exemption for the un-
incorporated business tax from $l0,-
900 to $1,000
Pay Raise Believed Certain.
Even with passage of the pro-
posed sales tax-which is by no
means certain because of strong
Southern opposition-the District
still would face a deficit in fiscal
1850 If Congress grants District en-
ployes $3.50 pay raise. Passage Of
this measure, which is supported by
the Commissioners, is regarded as
almost certain.
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