Evening star., 1954-04-04
Senate TO Give
Works Bill
Big Test Soon
Tuxes on Groceries.
Beer and Meals
To Be Contested
By Don S. Worren


face it's major test probably late
this week or early next week
when the Senate takes up the
HouSe-passed $305-million To-
year authorization measure.
It will be a major test be-
cause in the Senate the bill will
be wide open to amendment from
the floor.
Already there are members
pledged.to a fight to strike from
the measure proposals for a
per cent tax on groceries and
to the application of the sales
tax to meals of so cents or more
The present exemption on meals
Is SIPS.
There also is expected to be
a Senate fight over the amount
OF the tax on beer, but this ap-
pears more emotional than mon
etary since the amount of reve-
nue. involved is relatively minor
-$435.000. Involved in the sales
tax changes on groceries and
meals is a question of $50 mil
lion in annual revenue.
Case Hopes for Speed.
Senator Case, Republican, Of
South Dakota. chairman of the
Senate District Committee, in
charge of the bill, was hopeful
last night that the measure
would be taken up soon and
sent to conference with the
House.
He recognized there would be
o contest oyer the sales tax
provision, but said he had not
canvaSsed the Senate member
ship about the chances for ap-
proval Of the bill as written by
his committee. He said he did
not believe in looking for
trouble"
But he raised the question of
what practical substitute revenue
measures could be adopted should
the Senate adopt moves to knock
out the House-passed moves for
taxing groceries and lowering the
exemptions on meals.
1T is a fair question" he said,
"as to where the necessary
money would be found"
Senator Morse, Independent, of
Oregon, is taking a lead in the
move to strike out the new sales
tax provisions. He has the sup
port of two other District COM
mitteemen-Democratic Senators
Nicely of West Virginia and
Mansfield of Montana.
AS substitute, Senator Morse
has proposed an additional in
crease of $5.225, 900 in the Fed
eral payment-to raise it to $25.2
million a year for the next 10
years.
Case Sees Trouble.
Should that move succeed in
the Senate or even be written
into law, Chairman Case warned,
1t could wind up as a real injury
to the city's public works
program.
THE House bill and the one
adopted by the Senate District
committee" he said, calls for
an increase in the Federal pay
ment from the present $11 mil
lion to $40 million. But this is
an authorization and there is
no guarantee that succeeding
Congresses necessarily will ap-
propriate that full amount.
That will depend on actions
taken by Congress from year to
year in making the actual cash
outlays on the matching fund
basis for the sums to be used for
capital improvements to carry
on this improvement program"
Senator Case said.
He recalled that Congress at.
times had failed to appropriate
the full Federal payment, even
under the present $11 million
system.
Senator Case argued that
should Congress authorize a big
ger increase in the Federal pay
ment to replace the proposed
increased sales tax revenues and
should a later Congress fail to
grant the full Federal payment,
then it could be very injurious
to the public works program be-
cause of the matching money
provisions.
Senator Case added: 'It is
conceivable that under such cir
cumStances the public works
program could fail. If the. gen.
eral fund were short in Federal
contributions for the works pro-
gram, how could the District go
ahead?" he asked.
Sponsors had their fingers
crossed and hope for the best,
but evidenced some fears that a
Pandora'S box of troubles might
be opened if the Senate made
major changes in the pending
bill.
Other Taxes Possible.
Thoughts of some already
turned to possibilities of an
added layer of increased city in
come tax levies, of still higher
realty taxes or other substitutes.
One Senator who holds a last
ing interest in District welfare,
though no longer on the District
Committee, said he might pro-
pose a progressive system of
taxes on District liquor sales.
He said his tentative plan
might be to abolish the flat-rate
license fee on liquor sales places
and to substitute a grades one in
which progressively higher taxes
would be laid on licensees. de-
pending on the volume of the
sales they had by the month.
Senator Hill, Democrat. of
Alabama, former chairman of
the Appropriations subcommit-
tee in charge of District budgets,
voiced his full support of the
proposed boost in the Federal
pavnent from $11 million to $40