Evening star., 1950-12-14
District Heads
0pposeCutin
Sales Tax Now
Report by Fowler
Says High Costs May
Require More Levies

The Commissioners declared to-
day against any cut in the Dis
trict's 2 per cent sales tax now.
The indorsed the view of Budget
Officer Walter L. Fowler that "any
thought of tax modification at
this time is out of order"
Proposals that the tax be modi-
fled followed recent softening of
the sales tax in Maryland after
the election. The changes there
were effective December /.
Besides opposing downward tax
changes now. Mr.. Fowler stated
in a memorandum to the city
heads that continuing inf1ation-
ary trends will surely require a
restudy of our local tax structure
for additional revenues.
Changes Favored.
The city heads, however. re-
iterated their feeling that the
personal property tax be taken of
household goods and personal ef-
fects. A similar earlier action
was based on recommendations of
Assessor Edward A. Dent.
Meanwhile, Mr.. Fowler declared
that the budget for the fiscal
year beginning July l is balanced
considering the present tax struc-
tHe and full Federal payment
to the city. This year Congress
cut the payment from $12 mil
lion to $10.8 million.
Mr.. Fowler's memorandum was
submitted to the Commissioners in
November, before any sizable pres
sure had developed for modifica-
ton of the sales tax. In view of
proposals now being made to this
effect. the Commissioners decided
to release the report.
1t expressed the view that "un-
less we exercise extreme caution
and economy, we will shortly be
faced with the need for extending
our tax structure.
Budgets Compared.
Mr.. Fowler pointed out that the
city budget for fiscal 1910 was
$4,000 POT, as compared with the
1851 budget of $120,172,210. Per-
sonnel costs for fiscal 1910 were
approximately $50 million, while
the 1851 figure Is about S68 mil
lion. he noted.
Continuing inf1ationary trends
will surely require a restudy of
our local tax structure for addi-
tional revenues" the budget officer
wrote.
municipalities throughout the
Nation are being faced with
extraordinary financial problems
and are headed toward unbal-
anced budgets. This city also
has extraordinary financial prob
lens to consider and we might
just as we'll begin considerine
where the money is coming from.
New financial burdens to siz-
able extent without compensatory
tax increases will certainly upset
our calculations and cause q seri-
Gus reduction in service If ou.
budget is to be balanced in future
years"
Price Increase Noted.
Mr.. Fowler mentioned as points
to keep IN mind the rise in prices.
civilian defense needs and de-
mands for salary increases.
Since 1914, Mr.. Fowler recalled.
there have been four salary in
creases adding a yearly cost of
more than SIT million.
Efforts are now being directed
toward another round of salary
increases. the budget officer point
ed out, with suggestions ranging
from raises of $3.50 to $500 a
year. Since the District has ap-
proximately 10000 employees. a
$3.50 raise would total IS million,
and a $500 raise would amount to
$12.6 million, he said.
Mr.. Fowler said that he was
writing the report "in view of the
possibility that the citizens of
Washington may became unduly
optimistic over Maryland's modifi-
cation of It's sales tax and begin
to campaign for relief in the Dis
trict."