Evening star. [volume] (Washington, D.C.) 1854-1972, 1954-02-18

the (works) program would help
pay for it,"
Citizen leaders, meanwhile, ap-
plauded the Endorsement of the
Federal payment raise. but gen.
orally criticized elimination of
the $40 million loan.
BrOyhill Hits Gas Tax.
Representative Broyhill, Re-
publican, of Virginia, a District
Committee member. strongly op-
posed the gas mileage tax on bus
lines. He said he also would pro-
pose a beer tax increase to So
a barrel (Virginia's tax is $3.1O)
instead of 50 and more than a
50 million boost in the Federal
payment.
The Virginian noted also that
Virginia's Legislature is consid-
ering a gas tax increase to 7
cents a gallon. If this is done.
he said. he would propose the
District tax be raised 2 cents.
instead of /, to reach the same
level.
At the same time, however,
several indicated privately that
they feared tax raises-particu-
larly on real estate and sales tax
would be heavier than those
the subcommitte came up with.
William E. Leahy, chairman of
the Commissioners Citizens Ad-
visory Committee. said he is
extremely sorry the Subcom-
mittee did not go along with
the original proposal"
Sees HardShips.
He said the sales tax proposals
would work "a hardship" on
people who must bear the brunt
of District expenses, and that
the proposed loan was the
sound business approach" He
added.
THE point is that these new
taxes make the people presently
here bear the full load Of CAPT.
tai outlay for benefits which will
be enjoyed by others over the
next 40 or so years"
Francis G. Addison. jr., Wash
ington banker who headed a
citizens group on the works pro-
gram nearly two years ago, said
the revised program was mot as
liberal" as the interests Of all
citizens in the Federal Capital
might warrant. But the Federal
payment increase. he said,
would be of mutual benefit to
both the citizens of the country
and the District"
Joseph A. Kaufman. Fedora
ton of Citizens Associations
president, said he was disap-
pointed that the Federal loan
provision. Endorsed by the Budget
Bureau, was rejected.
II still feel. particularly with
reference to the real estate and
sales taxes. that Congress is hit
ting the breadbasket," he de-
clared. But l can see that the
joint subcommittee was APP
parently concerned enough to
touch it as lightly as possible"
Robert j. Wilson of the
Washington Restaurant AsSocia-
ton opposed the cut in the sales
tax exemption on meals as "a
real hardship on the public who
find it necessary to eat out" He
urged that groceries not be taxed
at all, and that the present ex-
emption Oh meals to be held "as
a necessity and not a luxury"
If past experience is a guide
the grocery and meal taxes will
come in for hea"y opposition
also when the bill hits the House
and Senate nO0rS.
Spencer Tells Of Negotiations.
On the Commissioners Re-
port" show over Station WMAL-
TV last night. Commissioner
Samuel Spencer disclosed that
the city heads had recommended
the plan to earmark for public
works all Federal payment money
over $155 million.
But he made it clear that the
city heads also had opposed
elimination of the general fund
loan and any tax increase be-
yond the $4.5 million mark.
Mr.. Spencer explained that
the Commissioners. under sub
committee instructions, proposed
three alternative possibilities to
the House Senate unit yesterday
for consideration. They were:
/. To hold to the $4.5 million
level. but to cut the sales tax
exemption on meals to so cents
in order to make up revenues
B