Evening star., 1949-02-03
Brief Hearing
On Sales Tax
"opens Tuesday
Two Bills on D. G..
Revenue PIon Up
Before Subcommittee
By Don 5. Worren

S~D~ShhblbNtS tSS
By Don S. Worren
The Commissioners proposal for
2 per cent District sales tax, COM
bined with a personal income levy
for those in the higher brackets will
get brief public hearings on Capt.
tol Hill next week.
The hearings, beginning at 10 m
Tuesday, will be held jointly by the
Fiscal Subcommittee of the House
and Senate District Committees.
Two bill to provide for the sales
tax plan already are before the
joint group.
One by Representative Smith
Democrat, of Virginia, chairman of
the House District Fiscal Subcom-
mittee, while providing for the sales
tax, also would exempt from the in
come levy all with net incomes of
So 900 or less.
The other, by Representative
Bates, Republican, of Massachusetts,,
introduced late yesterday and
drafted by District officials, would
place the income tax exemption at
SIS, 900.
Sales Tax Similar.
The sales tax provisions in both
bills are similar to those in the ILL
fated revenue bill of last year, which
passed the House but died in the
Senate, when one-man fillibuster
was started by Senator Johnston,
Democrat, of South Carolina,
against the tax.
At the joint tax hearings, the
door will be open to testimony on
all phases of city revenue possibil-
tiles, but Chairman Hunt of the
Senate wing of the joint group said
members are very, very hopeful
the hearings can be concluded In
not more than two sessions.
Speed is sought to get new reve-
nue. rolling into the District treasury
as soon as possible.
Another reason Is that executive
hearings on the city's record break
ing 1850 budget of $lO3, ,451 ,O0O-un-
balanced by about $4,000, 0,00O-will
be over, after an open session for
citizens tomorrow before the Dis
trict Subcommittee of the House
Appropriations Committee.
Chance of Cut Discounted.
Representative Bates. Democrat
of Kentucky, head of the Appro-
priations Subcommittee, said he had
found the city budget so tightly
drawn he could not see how there
could be any sizable cuts without
injuring services.
Even enactment of the sales tax
might not be sufficient to meet
next years District burdens, in the
opinion of Representative O'Hara,
Republican, of Minnesota, member
Of the House Fiscal Committee. The
District. he said, is in desperate
straits"
Most members of the joint fiscal
subcommittee think sales tax is
inevitable, if the District is to meet
its growing budget demands.
Senator Hunt said the hearings
will permit discussion of the size
of the Federal payment, the real
estate and personal property tax
rate, the proposal for doubling the
Districts liquor taxes and any other
features of the District revenue pic
ture.
Pay Raise Held Probable.
/ He added the subcommittee are
aware of the probability that Con-
gress will grant a $3.50 pay raise
to District Government employees,
retroactive to last July /. This
would increase the amount Of the
present deficit.
For the opening of the tax hear
ings, District Budget Officer Walter
L. Fowler will prepare an outline
of the city's financial picture. This
will include present revenue sources,
the amount of additional funds
that can be forseen and a listing
of possible methods of adding rev.
enue, Senator Hunt said.
The proposed sales tax would ex-
empt items sold retail for less than
IA cents. The tax would be l cent
on items between IA and so cents,
and cents on items from 81 cents
to 81. The tax would be increased
by / cent for each additional so
cents.
The tax would be collected by the
retailers. acting as fiscal agents of
the District. Retailers would be
allowed to take per cent of their
taxable sales to cover costs of COL
lection.
Under the sales tax bills, food for
home consumption and medicines
would be exempt. The bills are
similar in this respect to the Mary
land sales tax law.