Evening star., 1954-02-20
Works
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rough shedding in both House
and Senate debate.
Senator Morse. Independent,
Of Oregon, in a Senate speech
late yesterday. predicted there
would be interesting discussion"
on the food proposals. and as
serted:
II will not be party to this
proposed transfer of District
costs to those least able to pay"
Sees political Reasons"
The oregon Senator said Dis
trict residents ARE being taken
on a financial ride for political
reasons" and noted that the city
has no representation of it's own
in Congress. This is a good
example of what happens in a
case of taxation without repre-
sentation." he said.
Senator Morse protested also
that the Federal Government is
not paying its share of expenses
toward operating costs of the
Capital. but he reserved judP-
ment on how high the payment
should be.
Under the financing bill ap-
proved by the joint fiscal sub
committees of the House and
Senate District Committees. the
Federal payment would jump
from S11 million to $40 million
year. The bill. in addition to
the sos million in general fund
tax raises. also proposes 1-cent
gasoline tax increase and higher
water and sewer rates.
In an interview after his Sen
ate speech, Senator Morse said
he wants more time to study a
proposed scent raise in the city'S
real estate tax rate and several
other proposals.
He did, however, register OPP
position to higher taxes On beer.
whisky, cigarettes and gasoline.
Opposes penalty Levy"
The Senator told reporters he
is personally. as well as politi-
cally, dry. He said he neither
drinks alcoholic beverages nor
uses tobacco in any form. But
he opposes the liquor and beer
tax proposals as penalty levy
and said such taxes should not
be used as a prohibition device" :"
Meanwhile, the Municipal Re-
search and Tax Department of
the Washington Board of Trade
came to conclusions paralleling
Mr.. Martins in study of its
own on State sales tax laws af-
fecting food. The study. covering
| 33 States. SHOWED that only eight
States and the District have
broad exemptions Of food from
sales levies.
The trade board survey
brought out. however. that many
of the other States have limited
exemptions. A few apply to Spe-
cific food products, such as milk.
The most prevalent of the limited
exemptions involve meals served
in schools, hospitals and chari-
table institutions.
The trade board study covered
two States-Indiana and MaSsa- :
chusetts-not listed by Mr.. Mar
tin. Massachusetts, applies a S
per cent sales tax to meals cost
ing 81 or more but has no other
sales tax. Indiana has only a
one half of l per cent gross in
come tax on retailers.
Mr.. Martins study, aside from
the District. covered only one
municipality, New York City
which has a general 8 per cent
sales tax. New York State has
no sales tax. Officials pointed out
however. that many cities dc
impose small city sales levies
added in many cases to State
excise taxes. This practice is most
common in California, where
more than 100 municipalities ado
local taxes of one kind or an.
other to the 3 per cent State tax
OF the 33 jurisdictions Mr.
Martin studied. 81 (includins
Maryland and the District) have
2 per cent sales taxes, II impose
3 per cent taxes and one, Penn
sylvania, has a / per cent tax
Here, according to his study