Evening star., 1949-03-22
New Reviives
D. {. Sales Tax,
Realty Increase
House Group to Act
Thursday, With Floor
Debate Monday
By Don S. Warren

A new District tax bill calling
for 2 per cent sales tax and q
15-cent increase in the realty tax
rate as it's chief provisions was
introduced in the House today by
Representative Smith, Democrat,
of Virginia.
The bill, to be taken up at q
special meeting of the House Dis
trict Committee Thursday. is
sponsored by the Fiscal Subcom-
mittee of. the District group, Of
which Mr. Smith is chairman.
The measure proposes a 50 per
cent increase in the cost OF liquor
licenses and revision of the Dis
trict's personal income tax to
make it apply to all persons resi-
dent here for seven months or
more Of the year and to make the
basic exemption $4,000 instead Of
the $4,000 proposed earlier.
S18,00O,OO0 Yield Seen.
There were no exact estimates
of what the new bill would pro-
duce, but District officials calcu-
lated roughly it would bring in
about $18,000,0o0 in the next fiscal
year If enacted promptly.
If approved by the full District
Committee, as expected. the meas
ure is to be taken up for House
action next Monday, the next
District day.
Meanwhile, six members of the
House District Committee who op-
pose the sales tax introduced al
tentative revenue bills.
Identical measures proposing a
25-cent increase in the property
tax rate and proposing a broad
personal income levy with basic
exemption of 81 900 and with rates
ranging from 2 to per cent were
introduced by this group.
The authors were Representa-
tives Kennedy of Massachusetts,,
Klein of New York, Buchanan Of
Pennsylvania, Granger of Utah,
Miller Of California and Morrison
Of Louisiana, all Democrats.
Larger u. S. Payment Asked.
Mr.. Klein also introduced a bill
for an $18, 900, 900 increase, for the
next fiscal year, in the Federal
payment, now $12,000,000.
The new sales tax bill would be
changed in several respects from
the bill killed by a 176-166 vote
in the House last week. For one
thing, new brackets would be es-
tablished for the sales levy. All
items selling for 13 cents or less
would be exempted, as in the ear
lier bill, but tax of l cent would
be applied to items selling for IA
to So cents, instead Of from II
cents to so cents. The levy would
be 2 per cent on items selling for
81 cents and up.
In introducing the bill, Mr..
Smith said the adoption of an ex-
else tax was absolutely essential"
if the District was to meet its i'm
pending $18,000,000 deficit. He
took the view that unless such a
bill were adopted it would be i'm
possible to grant retroactive pay
raises to District employees and to
meet urgent budget needs.
In drafting this new BILL" MIR.
Smith said, I'VE have tried very
earnestly to meet so far as pos
sible the objections that were
voiced in debate to some of the
provisions of the former bill. The
committee realizes the very un-
derstandable objections of many
members to the so-called sales
tax. and we have modified its pro-
visions as far as is consistent with
the dire necessity of balancing
the District budget.
Tax on Gross Receipts.
Under the new bill he said the
whole theory had been changed
so as to impose a gross excise. or
sales tax, which was designed to
simplify the administration of the
act.
He said this would mean that
the merchant, in accounting for
the taxes collected. would pay on
his gross receipts rather than on
each individual sale. He said the
Fiscal Subcommittee believed this
change would greatly reduce the