Evening star., 1949-03-24
2% Sales Tax Bill
With Realty Rise
Sent 10 House
D. c. Committee Also
Books Teacher. Fire,
Police Pay Increase
By Don S. Worren

The House District Committee.
by a vote of IS to S. today ap-
proved and sent to the House for
action next Monday an $18,000,000
District tax bill calling for a 2
per cent sales levy and 15-cent
boost in the realty rate.
At the same time, the committee
reported favorably a bill to give
the $3.50 cost of living pay raise,
retroactive to last July /, to Dis
trict policemen, flremen and
teachers, to put them on the same
basis with Federal workers.
The tax bill will be called up
first. Action on the pay measure.
under plans of the leaders Of
the District Committee, will be
delayed until the House has pro-
vided revenues that would meet
the cost Of the pay raise and
cover existing budget deficits.
No Change in Smith Draft.
The pay bill was reported by a
vote of 13 to 6. Members ex-
planned that the six adverse votes
did not represent opposition to
the pay raise as such. Those
voting against reporting the bill
were said to feel the pay raise
measure should be delayed until
the revenue problem was solved.
In reporting the tax bill, the
committee made no changes IN the
measure as it was drafted by the
Fiscal Subcommittee, headed by
Representative Smith. Democrat,
of Virginia.
In addition to the sales tax and
an increase in the rate on real
estate and tangible personal prop
erty from So to $2.15, the bill calls
for so per cent increase in
liquor licenses and amends the
Districts personal income tax in
three main respects.
The income tax would be broad
ened to apply to all persons resi-
dent in the District for seven
months or more Of the year, ex-
cept members Of Congress, their
secretaries who maintain legal
domicile in their home States. and
presidential appointees confirmed
by the Senate.
$4,000 Income Exemption.
It also would raise the basic per-
sonal exemption from the present
$1,000 to $4,000. The latter is
designed to tighten the total tax
load on persons in the lower in
come brackets, who. like others,
would be paying the sales levy.
The third principal change in
the District income tax, as pro-
vided in the Smith bill. would
lower the basic exemption for un-
incorporated businesses operating
here from $4,000 to $4,000.
The pay bill for police, fremen
and teachers, would have been re-
ported favorably by the committee
several weeks ago except that the
District already was faced with a
big deficit under the 1850 budget.
Members of the committee have
declared repeatedly that Congress
had a moral obligation to extend
the $3.50 raise to the Districts
1900 city workers since Congress
already has given such a raise to
Federal employees.
The classified employees Of the
District would be given the raise
under separate bills which are
under the jurisdiction of the
House and Senate Civil Service
Committees.
Foes to Garry Fight to Floor.
Six members of the District
Committee are prepared to carry
their fight against the sales tax
back to the House. One of these,
Representative Klein, Democrat.
of New York, came out of todays
meeting shaking his head and
saying, "We are bloody, but un-
bowed" He and others gave for
NAL notice to the committee
majority they would fight the
Smith bill on the House floor.
They are seeking q broadened in
49,. n N TAXEC pana "A \