Evening star., 1949-03-08
Conqress Gets p. E.. Revenue Bill

CONTINUED From First Page.)
tanning a place of abode" here
for seven months or more Of the
year, except for elective officers o1
the United States, including mem.
bers Of Congress, and presidential
appointees who are subject tt
confirmation by the Senate.
To this the joint subcommittee
now has added a clause to ex-
empt also ANY employe of the
staff of an elective officer in the
legislative branch if such
employe is a bona-fide resident
of the State of the residence OF
such elective officer"
This plan, it's proponents said
would not exempt the great army
of Government clerks whose sal
aries are exempted from the local
tax by present law. but only those
who come here temporarily to
serve a member Of Congress.
10000 Pay Income.
Some members OF the joint
Committee said they were en-
barrassed to thinK that they
would be exempted while their
secretarial stats. that came here
only because their candidate was
elected to Congress. would be
taxed.
The present city income levy
now applies to only about 10000
of the Districts population OF
nearly 1,O0O,0Oo-namely. those
deemed to be "domiciled" here
Those claiming legal residence in
their home States are exempted
at least as to Government salaries
earned here. In changing this
generally, to apply the city tax tt
those actually living here most OF
the year, the pending bill would
raise the basic exemption from
$1,000 to $4,000. This, officials
said, would exempt from the tax
most Of the little people" OF
most of the District income OF
those making middle-bracket sal
aries.
The new tax bill also would re-
wise other sections Of the income
tax so as to call for higher levies
on unincorporated businesses. This
would be done by lowering the
basic exemption of partnerships
and other unincorporated con-
Germs from $4,000 to $4,000.
A special meeting of the House
District Committee had been
planned for some time next week
to expedite action on the tax bill,
but this may be moved up to some
day late this week, since the bill
| Is now in it's final form.
Klein Fights Sales Tax.
Representative Smith, chairman
of the House District Fiscal Sub
committee, is hoping for approval
of the measure in time for action
by the House at the next District
day-next Monday.
However. a fight against the
sales tax plan is expected to de-
velop in the House District Com
mittee. Representative Klein
Democrat. Of New York served
notice last night he would fight
any kind Of sales tax and seek
! the adoption of a city income levy
that would apply to all persons
resident here and call for in
creased rates.
While attacks on the sales tax
plan are expected to develop ir
both House and Senate chambers
proponents are driving ahead ir
the belief there Is no practical OF
"attainable" substitute If the city
is to meet its impending huge
deficit. They have In mind thai
the House at least twice In re.
cent years has slapped down pro.
posals to apply the District in.
come tax to all those actually liv.
ing here and enjoying District
facilities.
Delayed pay raises for the Dis.
trict's $1,000 employees will be ir
jeopardy unless an adequate new
city revenue plan Is adopted. some
officials warned. This was made
clear yesterday as to raises fol
police, firemen and school teachers
when the House District Commit
tee postponed action on these
questions to give the fiscal sub
committee more time for action or
the revenue issues.
Raises Blocked Last Year.
Last year, it was pointedly re-
called, pay raises for District en-
ployes were blocked in the Senate
when Senator Johnston. Demo
crat, of South Carolina fllibustered
to death the tax bill that would
have paid for the raises.
In short, the Senate took the
position then that If there was nc
money to pay for the raises there
would be no raises.
The District budget for the year
beginning July l. as it went to the
House from the Budget Bureau
proposed an outlay of $103, AGO.
900, leaving an estimated $8,000,-
900 deficit to be covered by the
proposed sales tax. In a stern
economy move, since there was as
yet no revenue legislation, the
House Topped off $4,400,000, but
still left an anticipated deficit OF
more than $2,500,000. In addition.
it rescinded earlier appropriations
for the Spingarn High School
although the urgent need for this
school for colored was generally
accepted.
The Senate is expected to restore
at least many of the items slashed
by the House, but the city's finan-
cial problem really will come to
a head when Congress, as now ex-
pected, approves the pay raise for
city workers. This would add
about SIS, 900 900 to the budget for