Evening star., 1949-03-11
D. ..C.:Tax Bill
Battle Shifts 10
House Monday
District Committee
| Votes Is to 7 for
$4,000, 900 Plan
By Don S. Worren

Preparations for a battle on the
House floor Monday over the best
way of solving the Districts money
shortage were being made today
by both proponents and opponents
of the recommended 2 per cent
sales tax.
The House District Committee.
by a vote of more than 2 to /.
yesterday approved the subcom-
mittee plan for raising about
$4,000, 900 added revenue by COM
bining a sales tax with revision
of the city's income levy.
Although opponents were de-
feated in the full committee by a
1877 vote, Representative Ken
nedy, Democrat, of Massachusetts,.
said he will file a minority report
with the House.
AS a substitute for the COM
mittee bill, he will seek approval
there of proposals for a higher
Federal payment, for revision OF
the District income tax and would
carry higher rates and be applied
to all persons actually residing
here, and authorize long term
bonds for permanent improve
mentS.
May Not Cover Deficit.
House approval of the committee
bill will be sought under the leader
ship of Representatives Smith.
Democrat, of Virginia, and Bates.
Republican, of Massachusetts,. the
chairman and the ranking minor
| ity member of the District Fiscal
Subcommittee.
Some members of the District
Committee yesterday warned that
even the pending S16,000,000 new
tax plan would prove insufficient
under possible Congressional ac-
tions raising the 1850 deficit to
more than $18,000,000.
While the House has cut about
$4,400.000 from the 1850 District
appropriation bill, to leave a pres
ent deficit of $2,5O0,OOO instead Of
$8,000,000, the Senate may insist
on restoring most of the cuts made
by the House. one member said.
| Also, members are expecting
Congress to approve a $3.50 pay
raise for 1900 city employees to
put them on the same basis as
Federal classified workers, who
received their raise last July !.
If this is done and made retro
active to last July /, an extra
$10,000,000 will have to be found.
Realty Boost Mentioned.
If both pay raise and budget
restorations are ordered, said Rep
resentative Bates, then we will
have to find $2,000,00o more than
is provided under the present tax
bill"
His comment came as several
members were asking whether the
: District real estate tax rate
! should be raised again. The
Joint House Senate Fiscal SUBJ
committee rejected this idea.
partly because the tax burden on
real estate rose about 80 per cent
two years ago when the rate and
assessments were boosted.
This subject, as we'll as propo-
sails for higher income rates, liq-
uor taxes and a greater Federal
payment will be debated in the
House Monday, officials Indicated.
The Joint Fiscal Subcommittee
rejected proposals for broadening
the city's income tax to apply to
all actual residents here, exempt
members of Congress and presi-
dental appointees, because similar
proposals twice before had been
voted down in recent years by the
House.
One Sales Tax Change.
Only one change was made in
the sales tax section of the bill
by the District Committee. This
would exempt medicine sold under
a physicians prescription but
would still apply the tax to other
goods sold from a druggists
shelves.
The seven members of the Dis
trict Committee voting against
the bill in it's present form were:
Representatives Klein of New
York, Kennedy of Massachusetts,
Granger of Utah, Morrison Of
Louisiana, George P. Miller Of
California, Buchanan of Penn
sylvania and Paul Jones of Mis-
souri,, all Democrats.
i Mr.. Jones voted against the bill
because he considers it was too
broad in it's exemptions. He Of
fered an amendment. voted down
by the committee, to remove the
exemption of food for home con-
cJ1rnptiop