Evening star., 1949-02-16

chapter Of Americans for Demo.
cratic Action and for the Wash.
ington Central Labor Union also
opposed a sales tax.
Benjamin Sigal. speaking fol
the Democratic Action group, sale
his group was not only Solidly
opposed to sales taxes. but founc
there was fairer means of meet.
ing the citys' revenue problem. He
proposed a new effort for legisla'
ton to broaden the city's income
tax and to increase its rates.
Mr.. Sigal. sharply criticizine
the Commissioners for their sales
tax proposal, attacked them fol
crying crisis" year after year.
1T seems to us that they only
convict themselves of fiscal mis-.
management which would not be
tolerated by any alert electorate
but which persists here only be-
cause the citizens of the District
are helpless to put a stop to it.
he said.
Cites School Building Program.
Since the pending budget in
cludes no funds for the big schoo
building program recommended lr
the Strayer survey report, Mr.
Sieal asked what the Commission
ers would do next year when some
of the deferred expenditures come
up for action. He asked if they
then would recommend raising the
sales tax rate to 3 per cent or pro-
pose dropping the exemption fol
food and medicine.
The witness agreed with the
Commissioners that real estate
taxes should not be increased.
c. F. Preller. president of the
Central Labor Union. urged the
committee to reject the sales tax
proposal and recommended a
broadening of the income tax. He
also recommended that the Disc
trict be authorized to borrow up
to 100000 from the Treasury
on a long-term basis. with interest
at 2 per cent.
Sees Lower Brackets Hit.
Striking at the sales tax plan.
Mr.. Preller said persons in the
lower Income brackets would
suffer a reduced standard of liv-
ing" while those in higher-income
brackets would merely experience
a reduced rate of savings"
In attacking the present limits
of the District income tax, Mr..
Preller described as a tricky con-
cept of domicile' the provisions
exempting persons living here but
claiming they are "domiciled
elsewhere.
Strong support for the sales levy
was voiced by Rufus S. Lusk, pres
ident of the Washington Taxpay-
ers' Association. He called it the
sole solution to the budgetary
problems.
Seeks to Increase Payment.
The Federal payment to the
District should be increased, Mr..
Lusk said. but he added that no
realist should kid himself into
thinking that the Federal Govern
ment will raise its payment from
$12, 100000 to S30,0O0,000.
Mr.. Lusk drew a dark picture of
what would happen if the extra
revenue load were to be placed on
owners. He said the
realty tax rate would have to be
increased from So to $2.75. II
this happens. he said, all rents
and prices would go up and real
estate investments would be
.ieopardized." =,
~ Residential and other construc-
ton would be forced into suburban
areas beyond the District line, he
said.
Liquor Proposal Fought.
Milton S. Kronheim, liquor
wholesaler. and Joseph Donohue,
representing the Washington Re-
tail Liquor Dealers Association,
joined in an attack on the proposal
to double liquor taxes and license
fees.
Mr.. Kronheim, who called for
greater economy and higher
Federal payment, declared that
liquor sales here had been de-
steadily since 1946.
Mr.. Donohue submitted figures
TO show that a popular brand of
blended whisky now selling for
S2.99 a fifth would sell for $3.17 if
the proposed higher liquor taxes
were adopted.
A referendum vote taken early
this month showed that two-thirds
Of the members of the Junior
Board Of Commerce who answered
the questionnaire favored sales
tax, Ellwood Davis, president of
the board, reported.
Sees No Income Tax Move.
81