Evening star. [volume] (Washington, D.C.) 1854-1972, 1949-03-14
Sales Tax Fight
in House,;
Vote Inmiinent
Smith Begins Debate;
Action Also Set on
Daylight Saving
By Don S. Warren

The House today took up the
Districts new S16,O0O,0O0 revenue
bill, calling for 2 per cent retail
sales tax, with prospects the fate
of the measure would be settled
by the end of the day.
A sharp conflict was expected
to develop. The bill was reported
favorably last week by a 16-to-7
vote by the House District Com
mittee. but six CT it's members
were prepared to demand the sur
stitution of a real District in
come levy. with increased tax
rates. for the sales tax.
Two hours of general debate
was opened by proponent of the
tax. Representative Howard Smith.
of Virginia, chairman of the Fiscal
Subcommittee of the District unit.
Sees Is Million Deficit.
Representative Smith declared
the prospective deficit in the COM
ing fiscal year would exceed $18,-
100000 if District needs are met
and if District Government work.
ers were to be given cost of living
pay raise retroactive to last July /.
Mr.. Smith, anticipating a de-
termlned attack from sales tax
opponents, said the District Com
mittee majority had concluded the
pending bill was the "only solu-
ton to the present city financial
problem.
There will be proposals made
to substitute broad city income
tax" he said. 1--WE went all
through that two years ago when
we proposed fair income tax.
but the House fatty turned 1t
down"
Budget Held "Cut to Bone"
He made the argument also
that the District budget already
has been "cut to the bone" to a
point leaving what he said were
crying needs" for capital i'm
provements. such as schools. for
which no funds are yet provided.
Mr.. Smith also reminded the
House that last year it passed a
similar sales tax-revised income
levy measure which failed of en-
actment only because of "one-
man" filibuter in the Senate. Last
years sales-income revenue bill
was passed by vote of 116 to II.
Senate action was blocked by a
filibuster by Senator Johnston,
Democrat, of South Carolina.
Opposition to the sales tax was
to be led by Representative Klein.
of New York, and Kennedy. OF
Massachusetts,. both Democrats.
They were to be assisted by Demo-
cratic Representatives Miller OF
California, Buchanan, of Pennsyl-
vania, Granger. of Utah, and Nor
rison. of Louisiana. all members
of the District Committee.
The fight of the opposition also
was to be backed by numerous
other members of the House, in
Guiding Representatives Mon
roney, Democrat. of Oklahoma.
Marcantonio, American Labor
Party, of New York, and others.
Food, Medicine Exempt.
The sales tax bill would exempt
principally food for home con-
sumption and medicine sold on
doctors prescriptions. 1t was
sharply criticized in statement
issued today by the Washington
chapter of the Americans for
Democratic Action, which has al
ways opposed a sales tax here.
The ADA proposed, instead, a
broadened income tax.
Also scheduled for action by the
House today was the DILL 10 au-
thorize District Commissioners to
establish daylight saving time.
The Senate passed bill, which
had given permanent authority
to the city heads on daylight
saving, had been amended by the
House District Committee to ap-
ply to this coming summer only.
The daylight time fight was ex-
pected to involve two issues.
Spokesman for the farm areas, led
by Representative O'Hara, Repub-
lican, of Minnesota. have threat
ened to make an all-out struggle
(See D. C. TAXES, Page A-60