Evening star., 1951-05-26
D. {. Personal
Property Tax
Repeal Fails
Move to End Levy
Piseon-HoIed by
Subcommittee
By Harold B. Rogers

Legislation to repeal the personal
tax on District household
,oods and jewelry has been pigeon
loled by joint Senate-House Dis
;rict subcommittee.
Only a few minutes were re-
luired late yesterday for the fiscal
,ubcommittees Of the Senate and
House District Committees to de
Ter action" on the measure.
While it was indicated by one
committee member that the group
might take another look at the
proposal later, there appeared little
the bill would come to
life again in this Congress.
Principal reasons for setting
aside the proposal centered on the
probable need Of the District fu
more revenue to meet increased ex-
penses.
Senator Hunt, Democrat, Of
Wyoming, head of one fiscal sub
committee, told reporters after the
meeting:
This is not the time to remove
existing taxes when every one is
clamoring for more money"
Smith Concurs.
Representative Smith, Demo-
crat, of Virginia, head Of the
House District fiscal subcommit-
tee, echoed this sentiment.
This is no time for monkeying
with District taxes" he said. But
he added: 1--WE may take look
at it later on"
Repeal Of the tax had been rec
commended during two days Of
public hearings by District Of
ficials, the Washington Board Of
Trade, the Federation of Citizens
Association and others. The levy
was branded unfair, inequitabls
and easy to evade.
District Budget Officer Walter
L. Fowler, when informed Of the
joint committees action, said:
well, we tried. We do need the
revenue, but, nevertheless, we
thought this was an inequitable
tax.
IF the revenue situation inn
proves, "the Commissioners un-
doubtedly will ask Congress to
consider again the elimination Of
the non-business personal tax." "
Sees Incentive to Cheat.
During the hearings Mr.. Fowler
went so far as to charge that
evasion is so widespread that the
tax makes cheats" out of people.
The joint fiscal subcommittee
was told by several witnesses there
had been a general understanding
that when the city's 2 per cent
sales tax began producing revenue.
the personal property tax on
household furnishings and jewelry
would be repealed.
Senator Hunt was the most
outspoken during the hearings
in explaining the subcommittee s
attitude. He said it would be en-
barassing to go on the floor Of
either House or Senate asking for
repeal of a District tax because
of the fiscal situation, both locally
and nationally.
He pointed to the inconsistency
in trying to repeal a city tax, and
at the same time defending the
full $12 million Federal payment
toward District costs.
Furthermore, Mr.. Fowler had
told the joint group during the
hearings that the city would face
Increased expenses, if a prospec-
tive pay raise is granted by Con-
gress to Federal and District
workers.
Based on Full Payment.
! The pending District budget,
now in the hands Of a House
Appropriations subcommittee, is
based on revenue from the full
$12 million Federal payment, Mr.
Fowler emphasized. Yet some Re-
, lrublicans have threatened to cut
this grant again. 1t was reduced
to $10.8 million for the current
fiscal year.
In the light of these possibili.
ties, Mr.. Fowler warned that the
city may have to go before Con.
greSS later to ask for more rev.
, enue.
, The budget in the city supply
! bill for 1852 has been reduced
from it's $140.5 to about $138 mil
lion by the Bates Appropriations
Subcommittee of the House. Thi,
group plans to report the bill tt
the full Appropriations Commit
tee on June 4.
The Hunt Smith Subcommit-
tee deferred action. not only or
; the proposed repeal of the per-
: sonal property tax, but also pro-
! posed changes in the city revenue
/ laws, mostly of an administrative
:. and judicial nature.
4 Attending the brief session OF
the Joint committees yesterday
\ afternoon were Senator Hunt and
Representatives Smith. Jones,
! Democrat, of Alabama and Allen,
! Republican, of California.