Evening star., 1949-03-30
Sales Tax Action
.BySenateGroup
Is Due tuesday
Crowded Calendar
May Delay Revenue
Measure on Floor
By Don S. Warren

The $18,000,000 city revenue bill,
based on a per cent sales levy,
now half way through Congress.
is to be considered by the Senate
District Committee next Tuesday.
Prompt action is expected there.
but the bill may be delayed in the
Senate because of the crowded
calendar there.
New life was injected into the
effort to keep the District solvent
by the ZIG to 180 roll call vote in
the House yesterday, sending the
revenue bill to the Senate.
Chairman McGrath of the Sem
ate District Committee declined
to make any outright forecasts, or
to outline any definite program
until details of the House measure
have been studied by his Fiscal
Affairs subcommittee.
He said, however, that since the
revenue measure comes along this
early in the session. he doubted
that a fllibuster could block final
action.
1t was recognized that the sales
tax would encounter a fight in
the Senate. as it did in the House.
Leaders expect rebellion" by at
least two members of the Senate
District Committee.
Objections are expected from
Senator Johnston. Democrat. Of
South Carolina. who last year
staged a one-man filibuster in
the closing days of the Both Con-
gress and killed both the sales tax
plan and pay boost for city
employees.
Objections also are expected to
be raised in the committee by
Senator Nicely, Democrat, of West
Virginia.
Senator Frear, Democrat, of
Delaware. member of the Fiscal
subcommittee headed by Senator
Hunt, Democrat, of Wyoming, in
dicated he would 60 along because
of the dire straits of District
finance. although he does not ia
vor that type of levy.
Passage of the bill by the House
only two weeks after it had re-
jected a somewhat similar meas
ure raised new hope for the $3.50
cost living pay raise for city
workers. retroactive to last July
/. House District leaders are
withholding pay raise legislation
for District employees, including
policemen, firemen and teachers.
until sufficient revenue is assured.
The new revenue bill was pi-
Eloted through the House by Rep
tresentatiye Smith, Democrat, Of
Virginia, chairman of the District
Fiscal subcommittee with the aid
of Representatives Bates, Repub-
lican, of Massachusetts,; Harris.
democrat. of. Arkansas and many
1others.
/ Other Items in Bill.
In addition to tine general 2
per cent sales levy. the House bill
calls for:
/. An increase of IS cents in
the 50 tax rate on real estate.
City officials explained last night
this increase would not apply to
tangible personal property, as had
been assumed.
2. A broadening Of the personal
income tax to apply it to all per-
sons actually living here seven
months or more of the year, with
out regard to domicile back
home" except for members OF
Congress, their secretaries and
certain presidential appointees.
The basic exemption. however.
would be raised from $1,000 to
$4,000 to exclude most of those in
the smaller salary brackets.
3. A strengthening Of the 5 per
cent tax on unincorporated busi-
nesses by lowering the basic
exemption from $4,000 to $4,000.
4. A so per cent increase in the
fees for District liquor licenses.
Applies to Commodities.
The sales tax feature Of the
House bill would apply generally
to all commodities sold at retail
here. or to items bought outside
and brought in here for use, ex-
cept for specific exemptions.
All items selling for 13 cents or
less would be exempt. Also re-
naming untaxed would be food
sold for home consumption.
prescription medicines. candy.
bottled soft drinks. dentures,
hearing aids. artificial eyes, pros
thetic appliances and similar aids
to the handicapped. such as
wheelchairs.
. Articles selling for IA to SO
cents. inclusive. would be subject
to a 1-cent levy; those selling for
"a cents to $1.13. inclusive. would
be taxed 2 cents. and an added
cent would be applied for each
additional so cents in the retail
price.
In yesterdays House passage Of
the bill. 103 Democrats Joined lis
Republicans in voting for the
measure. Voting against the bin
were 1873 Democrats, As Republic
cans and l American Laborite.
| Analysis of the House roll call
showed Is House members-16
Republicans and 9 Democrats
yesterday voting for the bill after
having opposed it two weeks ago.
| On the other side. one Democrat
and one Republican, who voted
for the hill tuo weeks ago. voted