Evening star. [volume] (Washington, D.C.) 1854-1972, 1949-01-28


Set Joint Meeting on
ID. T.. Fiscal Problem
BY Harold B. Rogers .
Financial troubles facing the Dis
trict will be tackled Wednesday BY
a Joint session of House and Sen.
ate fiscal subcommittee in charge
of city tax legislation.
The group will have before it the
bill for a per cent District sales
tax, introduced in the House yes
terday by Representative Smith
Democrat, of Virginia.
Such levy has been proposed
by the District Commissioners as
the principal means OF balancing
the record SOB, 100000 city budget
for next fiscal year beginning July
Plans for the joint meeting were
made late yesterday, following the
first session of the House District
Fiscal Subcommittee, headed by
Mr.. Smith. The group discussed
the financial dilemma of the city
with several city officials.
Chairman Smith afterwards in
vited members of the Senate Dis
trict Fiscal Subcommittee to sit
with US to study the financial
plight of the city.
Hunt Accepts Quickly.
Senator Hunt. Democrat, of Wyom-
ing, chairman of the Senate group,
accepted the invitation quickly. He
announced the joint session will be
held 3 pm. Wednesday in the Sem
ate Office Building.
Plans for future joint committee
procedure will be worked out, Sen
ator Hunt said. 1t appears likely
this will lead to joint hearings on
the sales tax and other possible
revenue sources.
This joint meeting follows a pre-
cedent set last year, when the fiscal
subcommittee from both chambers
held joint conferences and later
joint hearings. They developed the
sales tax, which passed the House
but was killed in the Senate by a
filibuster. When the sales tax died,
a proposed $3.50 pay raise for CLASH
fled city workers died with it.
| The new bill introduced in the
House yesterday by Representative
Smith is identical with last years
measure, with one exception. The
new bill would become effective
May l of this year.
Few Exceptions.
The measure would levy 2 per
cent retail sales tax on virtually all
articles, except medicines and food
for home consumption.
I In addition, the bill would amend
the present District income tax law
to raise the personal exemption to
$4,000. 1t would also make liable to
the income levy all persons living
here, many of whom now escape.
Under the present law. the only
exemptions are $1,000 for the tax
payer, $1,000 for the spouse, and
$500 for each dependent.
Representative Smith has been a
consistent supporter of the sales tax.
He voted for it in the House last
year and has promised to vote for
it again.
Senator Hunt withheld final de-
cision on sales tax for the District
until he has heard arguments on
the controversial measure.
He pointed out, however. that his
home State of Wyoming enacted a
sales tax in 1885 over the strong
objection Of organized labor. At the
time 1t became law, he said, esti-
mates OF its revenue were placed at
about $750,00O a year. To the
amazemeflt of his people, the law
maker said, the levy now is pro-
ducing about $650,00O a month.
Fiscal Problem Discussed,
The fiscal predicament of the CITY.
facing a big deficit in the fiscal year
beginning next July /, was discussed
at length by the House fiscal unit at
its executive session late yesterday.
Chairman Smith, asked what the
general picture was. replied:
1T was so dark we couldn't see it
very quickly. We've got to raise
money" he declared. THE accent
emphasized by the entire group is
for speedy action
District officials pointed out that
the s103, 100000 budget for 1850 fiscal
year can be balanced only by the
2 per cent sales tax.
Furthermore, the budget contains
no provision for meeting the pro-
posed $3.50 annual pay raise for
classified city workers, who were
deprived Of it when Federal en-
ployes were granted such raise last
year.
S13,200,000 Prospective Deficit.
Explaining the discussion at the
executive session, corporation COun-
sci Vernon E. West said the sub
committee was told the 1850 budget
already is about 100000 short of
the needed revenue. If another
S., 100000 is added to the budget by
the new pay raises, the shortage
would run up to $13,20O,O00 he said.
The sales tax is estimated to pro-
duce about s13,00O,OOO a year, Mr..
West said the committee was told.
Taking part in the discussion. be-
side Mr.. West, were Budget Officer
Walter L. Fowler, Assessor Edward
A. Dent, Auditor Arthur r. Pikker-
ton and Harry Walker, assistant to
Mr.. West.
Subcommittee members present
were Representatives Smith, Bates,
-