Evening star., 1949-02-09
FinoIHeoring onD.C. Taxes Due
In Week; Sales LeyyFoces Fight

Alcoholic Beverage Control Board
approved the doubling of liquor
license fees and doubling of the
tax on beer, but cautioned that
any similar rise in the tax on dis
titled spirits might cut business
and city revenues from this source
and thereby encourage bootleg
gers and moonshiner operators.
If higher liquor taxes are nee
essary, however. he said, the ABC
Board would not oppose the rise,
but hoped it would be only for a
year.
Mr.. Payne agreed that beverage
taxes here were low compared
with State levies.
Retroactivity Questioned.
Two members of the Fiscal Sub
committees. observed District
liquor dealers, seemed to be doing
pretty WE'LL" though Mr.. Payne
reported a decline in tax colIec-
tions lately. a., ~
Mr.. Fowler said that unless
Congress is willing to grant the
extra S4,O0O,000 in the size of the
Federal share it was questionable
if the city pay raise should be
made retroactive to last July l..
He estimated that to grant a $3.50
pay raise to the citys 1850 work
ers for the next fiscal year would
cost s5, ,697,780 and that to back
date it to last July l would cost
an added $4,942,175. The esti-
mates include stepup OF s165
a year to each of the 1,100 retired
police and firemen.
Such payroll increases would
raise the presently budgeted gen.
eral fund costs for 1850 of $87,-
727,000 to S99,367 900. Present
general fund revenues for next
year are estimated at only $780,
650,000.
Two sales tax bills, already be-
fore the House District Commit
tee. one by Chairman Smith OF
the House Fiscal Subcommittee
and another by its ranking mi
nority member. Representative
Bates, Republican, of Massachu-
sets. woSld cover the impending
deficit only partially. Mr.. Fowler
said.
Two Bills Very Similar.
The two bills are very similar,
except that the Smith bill, in re-
vising the personal income levy,
would exempt net incomes up to
$4,000. The Bates bill, backed by
the Commissioners. would limit
the exemption to $4,000 net in
come, and thereby bringing in
more money than the Smith bill.
The Bates bill also would lower
the present $4,000 exemption for
unincorported businesses to $4,000
before application of the 5 per
cent income tax rate.
The sales tax is calculated to
Weld S1O,OO0,0O0 in the 1850 fiscal
year, if enacted by May /, and
s13,50O.o00 annually thereafter.
City officials say it would take
about two months to set up the
collection machinery.
District officials said proposed
amendments to income TAX act
as applied to unincorporated busi-
ness would bring in an estimated
additional Sl,200.00 a year.
AS to the proposed changes in
the ABC tax city officials asked:
/. An increase in the tax on
spirits from so cents per gallon to
$1.10 per gallon; the imposition
Of 10-cont-a-gallon tax on still
wine of an alcoholic content of IA
per cent or less, and doubling Of
all other beverage taxes-these
estimated to bring in an additional
81, 100000
2. An increase in the tax on beer
from so cents to 81 per barrel.
estimated to net an additional
100000.
3. Doubling Of present ABC
license fees, estimated to bring In
an extra 100000.
Dent Submits Charts.
At the request of Mr.. Bates, AS
SCISSOR Dent submitted charts to
show that if the lions share of
the needed extra revenues were to
be taken from realty and personal
property owners, the rate would
have to be jumped from 50 to
$2.75 per $100 of value.
This, he said, would mean an
increase of 81 per cent in the
realty tax on the typical taxpayer
since the 1947 fiscal year.
A typical realty holding valued