Evening star., 1949-02-09
By Don S. Worren

Final hearings on proposals 10
swell District revenues by about
$18,000,000 in new taxes and a
$4,000 900 increase in the Federal
payment are expected to be held
early next week by the House
Senate Joint Fiscal Subcommit-
tees.
Thousands of words and fig,
ures. poured into the record late
yesterday by city officials, appar-
emily left the joint group con-
vinced of the necessity of a heavy
increase in revenues to keep the
District out of the red.
Considerable discussion was de-
voted to means of making a pro-
posed 2 per cent general sales tax
key to the Commissioners tax
plans-more effective as money
raiser.
But in the one or two addi-
tional hearings to be held-the
dates yet to be fixed, members
said-strong arguments are to be
expected from some groups against
any sales levy. Support is ex-
pected from other public groups.
Business, labor and civic spokes-
men are expected to testify.
Yesterdays opening OF public
hearings revolved around the
cord-breaking S103 AGO. 900 budg-
ct, now before House Appropria-
tions subcommittee. 1t provides
relatively little money for con-
struction, but still is out OF balance
by some s8,000.000.
On top of this, however, city
officials warned, is the probability
Congress will grant retroactive
pay raises to city employees, to
match Federal worker increases
already granted. This would push
the prospective deficit to $l8,7l7,-
900. they said.
To cover such a need, the Com
missioners, through Budget Officer
Walter L. Fowler, proposed this
four way revenue plan:
/. Adoption of 2 per cent retail
sales tax exempting medicines.
food for home consumption. all
items selling for IA cents or less,
and some other special classes.
This would be combined with a
revision of the city's personal in
come tax, one feature Of which
would limit it to those having net
incomes of more than $4,000. An
other revision would apply the
levy to all persons having a place
of abode" here seven months or
more of the year-eXcept for elec-
tive and some appointive officials
instead of merely to those
"domiciled" here.
2. An increase Of $4.0O0,000 in
the Federal payment toward Dis
trict costs, to raise the Federal
share to $4,000, 900, including the
81 100000 now granted to cover
District water services to Federal
properties. This would be per
hans" for only one year.
3. A doublinG of the citv taxes
and license fees for alcoholic bev-
erages. this also perhaps to be
on one-year basis.
4. A delay of one year, to De-
cember 81, 1949. in the effective
date for revision of thes personal
income tax plan to exempt net
incomes up to $4,000. This was
calculated to save S1,900,000 in
taxes which would be lost in the
next fiscal year if the lower
bracket taxpayers were exempted
after December 81, 194S, as first
proposed.
Mr.. Fowler stressed that the
immediate problem would be to
get over the hump" of financial
troubles in the fiscal year begin
ming next July /. With adoption
of the proposed sales tax, he said,
only one-year increase in the Fed
eral payment and the doubled
liquor taxes would be necessary,
if Congress saw fit to limit these
moves to that period.
The initial hearings also were
marked by a strong defense of
District realty and personal prop
erty assessments and the prevail
ing So tax rate by Tax Assessor
Edward A. Dent. The property
tax burden here. he said. COM
pares favorably with that of other
large cities. He offered survey
data to support his findings.