Evening star., 1951-10-22
D. 6. Budget
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items totaling S141,-
l74 ,480.
The available revenue, Mr..
Young noted is about S29 million
less than the department heads
recommendation. The city Off
cials seek S35,425,424 for new
construction and other permanent
improvements. He pointed out
that general fund appropriations
this fiscal year amount to STA
711,101.
Deduction of homecoming
items leaves a base of S93,839, ,234
flor fiscal 1858. he went on. To
this total must be added manda-
tory operating expense increases
amounting to nearly STA million
Completion of previous authorized
contracts, debt repayment and
other capital outlay financing will
total over $5.1 million.
In addition. a reserve of $6 mil
lion for pay increases and about
So million for other contingencies
must be provided.
This leaves only about $3.5 mil
lion >for new improvements ano
other increases, Mr.. Young said.
He said that more than 81 mil
lion of $112.5 million to be avail
able for 1858 is expected from a
surplus at the end of this fiscal
year, and will not be available in
1858 unless revenues from taxa
tion exceed estimates.
Warns Against Tax Rise.
Mr.. Reilly said his group did
not believe that substantial in
creases in existing tax rates here
could be made without serious
damage to the economy of this
city and without accelefating the
movement of businesses and peo-
pie beyond the jurisdiction of the
local government
He said the trade board views
with alarm the migration of busi-
ness units from the District of
Columbia to the outlying areas
in our neighboring States"
This concern is not limited to
businesses abandoning their Wash
iington operations Tor other loca-
tions, but also to those establish
ing branches in the outlying
areas, Mr.. Reilly went on.
THE most challenging task be-
fore us is to preserve the sound
ness and stability of our local en-
terprises,' he said. Their sue
cess means greater revenue for
the District"
Nothing is more destructive to
profitable operation than the
heavy burden of taxes, Mr.. Reilly
asserted.
Comparison Unfair.
While some argued that the
dollar volume and dollar net
profit of business firms here COM
pared favorably with the same
period of 10. Is or 20 years ago,
he noted, the comparison is un-
fair.
1--WE must remember that the
purchasing power of the dollar is
just as important to the investor
as it is to the wage Garner" he
said. Investment income is not
exempt from the ravages of infia-
ton"
The District has tapped every
available substantial source of rev.
enue, Mr.. Reilly said. The solu-
ton of the Districts problem can
be accomplished only by a more
equitable Federal payment and
rigid economy in administration,
the speaker said. For one thing,
he saw little justification for fur
ther increasing personnel.
Mr.. Leeman noted that the Dis
trict estimated a S14 million yield
from the sales tax in fiscal 1858
and only $5 million from banks
and utility companies.
Bank Assets Increasing.
He said banks constantly are re-
porting an increase in assets and
suggested a study as to the advis-
ability of increasing the taxes on
banks so that they could share
some of the additional burden on
individual taxpayers in the sales
tax
He pointed out the federation
is on record for reduction of the