Evening star., 1949-04-22
Johnston Fires
Opening Shot at
Sales Tax Plan
Senotor Files Bill
For Bond Issues on
CopitoI improvements

Copitol Improvements
Senator Johnston. Democrat. Of
South Carolina has fired his first
shot against the proposed District
sales tax with a bill TO authorize
the Commissioners to float bonds
for capital improvements.
The measure. which went to the
District Committee. would restrict
the total bond issues at any one
time to not more than 5 per cent
Of the assessed value of taxable
real property in the CITY,
The District revenue bill. in
cluding a 2 per cent sales tax.
now is on the Senate calendar.
awaiting action. 1t already has
been passed by the House. 1t is
designed to raise about s18, 900 900
to prevent a deficit in the coming
fiscal year. beginning July /.
Exemptions Under Bill.
Under the bill, as amended by
the Senate District Committee
exemptions would include groceries
for home consumption. restaurant
meals up to $50. all medicines,
and such items as candy, bottled
soft drinks and crutches and other
aids to the handicapped.
The measurs also would increase
the realty tax rate by IS cents.
raise liquor license fees and bever-
age taxes, put a special 1-cent-per
pack tax on cigarettes and revise
the city's income tax.
Senator Johnston. a foe of
both the sales tax and legislation
for Washington home rule. was
understood today to be reshaping
his drive against the sales tax and
soliciting support from its op-
ponents, especially in the Dis
trict Committee.
Tells Of Minority Report.
Senator Frear. Democrat, of
Delaware, who voted against the
city revenue bill including the
sales tax when 1t was approved
by the Senate District Committee.
outlined for the press some of the
features contained in a minority
report, he said had been prepared
by Senator Johnston.
One of the proposals to which
he objected, Senator Frear said,
was the authority to float bonds
for capital Improvements.
When the bond proyiso was
from the minority re-
port. Senator Frear said he signed
the report. But later Senator
Johnston said the rest of the
minority report was torn up" and
would be rewritten.
,. 1othef Fssturss in.Draft. Il
Among the other features in
the original draft. Senator Frear
said, were; t
An increase 81 50 ipef cent Or
more in the present Federal pay
ment of $l2.000,o00 towards city
expenses. 't* -,'FS $780, -
Virtual doubling Of ,District. ia
come tax rates. with extension Of
the levy to salaries Of Federal
officials. who now are exempt be-
cause they maintain legal resi-
dence in the States.
Increase in liquor taxes higher
than the so per cent raise recon-
mended in the present bill.
A 25-cent increase in property
tax rates here from the present
81 rate, as compared to the Is
cent boost carried in the pending
bill.
The minority report. Senator
Frear said, opposed any sales tax
for the District.
The Delaware lawmaker indi-
Gated he will not fight the present
revenue bill on the Senate floor.
He said he believes it will be
passed by the Senate.
Johnston Gives Statement.
When Senator Johnston intro
duced his bill for bond issues. he
issued q formal statement IN
which he said there are few
cities which have not from time
to time borrowed money at low
interest rates to make needed i'm
provements.
Certainly" he added. mo city
as large as Washington would
think of waiting for the needed
school building Or other public
project until all Of the cash was
in the bank. OF course munich
palities as individuals can do too
much borrowing. but in my opin-
ion the City of Washington has
suffered from an inability to bor-
row money when needed for i'm
portant and necessary capital
projects"