Evening star., 1949-02-17
Decision Slated
Tomorrow on
Sales Tax Plan
Joint Fiscal, Group
Members See Levy
As Only Solution

berS of the House and Senate Dis
trcit Fiscal Subcommittee on the
2 per cent retail sales tax pro-
posal.
Some members of the joint
group are known to have con-
cluded that the sales tax is the
only practicable solution to the
Districts impending $18,000,000
deficit. Others are reserving final
judgment, but surface indications
all point to a recommendation for
the levy.
Call Executive Session.
At the conclusion of yesterdays
all-day hearings, Co-chairmen
Hunt and Smith of the Senate
and House groups scheduled an
executive session for tomorrow
morning. At that time they will
seek decisive action on the issues.
Tied in with the proposed sales
levy, which would exempt food
for home consumption and medi-
cines and some other items, is a
proposal to revise the city's in
come tax. This would broaden the
base to apply the tax to all per-
sons maintaining place of abode
here seven months or more of the
year, and to raise the basic eX-
emption to a net income of either
$4,000 or $4,000.
Other proposals of the Com
missioners to cover the unbal-
anced S103,O0O,OO0 budget and to
meet added deficits arising from
the expected passage of pay
raises for city workers. retroac-
tive to last July /, include:
A doubling of beverage taxes
and license fees: a temporary
S4,000,000 increase in the Federal
payment, and postponment for
one year, to the end of 1850. of
the effective date of the proposed
revision of the income tax.
One Possible Change.
Subcommittee members indl-
Gated one probable change in the
pending bill. This would be to
include, as subject to the sales
tax, such District utility opera
tions as gas and electricity serv-
ices, since it already was planned
to tax oil and coal fuels.
Spokesman for the oil heating
and oil fixtures industry yester-
day attracted the attention OF
the JOINT committee members
when they said a serious dis
crimination" would be created III
competitive field. if oil and
coal we're subject to the sales
levy but other utilities were eX-
empt.
Representative Smith. Demo-
crat, of Virginia. head of the
House subcommittee. voiced a
positive commitment in favor of
the sales tax. Last year. after
weeks of hearings, he concluded
there was no other choice of addi-
tional revenue of sufficient size to
meet the need. He voted for the
bill then and announced yester-
day he will vote for it. again.
Withholds Comment.
Senator Hunt, Democrat, OF
Wyoming, head of the Senate
wing of the Joint fiscal group,
withheld any final commitment.
But he pointed out his home State
has a sales tax and that he is
aware of the revenue produced by
this sort of levy.
Representative Bates. Republi-
can, of Massachusetts,, ranking
minority member of the House
subcommittee also voted for the
bill last year. One of the citizen
witnesses yesterday. Mrs. Leslie B.
Wright of the Forest Hills Citi-
zenS Association. made point
that he finally" had been con-
vinced of the need of a sales tax.
Witnesses yesterday lined up al
most even in their pros and cons
on the sales tax.
Among those speaking for this
method were spokesmen for the
Board of Trade, the Washington
Taxpayers Association, Fedora
ton of Citizens Association, Ju-
nior Board of Commerce, the
Washington Building Congress,
the Building Owners and Man
ayers Association, Federation of
Business Mems Associations,
Southeast Business Mems Asso-
ciation, Northwest Council of Citi-
zens' Associations. Forest Hills
Citizens Association. Metropoli-
tan Home Builders Association,
Washington Real Estate Board.
Oh Heat Institute of Greater
Washington, District Federation
of Women's Clubs and the Wash
ington Hotel Association.
Foes of Proposal.
Opponents included the District
Chapter Americans for Demo-
cratic Action, Central Labor Un-
ion (AFL), Progressive Party of
the District, National Negro Coun-
Gil, District Department of the
American Legion, District League
of5cWomen Voters, Washington
Industrial Union Council (CIO)
Washington Hotel and Restaurant
Employees and Bartenders' Union,
Washington Auxiliary Unit e d
Public Workers of America, Cafe
terra Union Local All and Ameri-
can Federation of Government
Employees.
DR.. Evart Warren, represent
ing the District Optometric AS
sociation, stirred the Joint COM
mittee to prospective change in
the sales tax bill, which would
exempt facilities sold to handi-
capped persons, such as crutches
artificial limbs, eyeglasses and
hearing aids.
He told the committee the
MARYLAND lau has hepp amended