Evening star. [volume] (Washington, D.C.) 1854-1972, 1954-02-05
Citizens Spokesman
Oppose City Plan for
Boosting Revenue
Alternate Proposals
Offered in Financing
Works Program
By George Beveridee
By George Beveridge

Representatives of several
citizens groups today recon-
mended against any bread bas-
ket"' tax boosts and suggested a
seven-point alternative to the
Commissioners plan to raise
$4.5 million in additional taxes
to help finance the public works
program.
The new proposals were agreed
upon at an informal meeting
sponsored by the District FEEDER
alton Of Citizens Associations.
Each representative agreed to
take the proposals back to his
organization for policy consid-
Grafton.
The informal groups action
had two parts.
The first was to express OPP
position to extension of the
sales tax from 2 to 3 per
cent; opposition to any real es-
tate tax rate boost. opposition to
removing the sales tax exemp-
ton on food and opposition to
lowering tine personal exemp-
tionS on income taxes.
Capitol Hill Opposition.
All of these possibilities were
raised last week by members of
the House Senate subcommittee
holding hearings on ways to
finance the works program. Sub
committee members suggested
them in obvious disagreement
with some of the tax boosts pro-
posed by the Commissioners.
The second part of the cit
liens action today was to pro-
pose the following alternatives
to the Commissioners proposals
in the hope that they would be
more palatable to the subcom-
mittee:
l. Raise income taxes (the
only point of agreement with the
Commissioners proposals. to
produce an additional SIT mil
lion a year.
2. Raise the present sales tax
on transient hotel rooms from
2 to S per cent to produce $780,
900 more.
3. Increase from 4 to 6 per
cent the tax on gross incomes
of banks to produce 100000.
4. Raise from 2 to 4 per cent
the tax on gross receipts of
building and loan associations
to produce $4,000.
5. Raise from 5 to 6 per cent
the tax on corporation net
profits to produce STA million.
6. Increase from to 6 per
cent the net profits tax on I'M
incorporated businesses to pro-
duce $4,000.
Z. Eliminate the personal
tax and place heavier
collection emphasis on other
taxes to produce at least $780,
900 more a year.
The total of these would re-
suit in an estimated $5.360,000
additional. However. elimina-
ton of the personal property tax
would drop $850.000. making a
net increase of $4.5 million. This
$4.5 million figure is the same
as that proposed by the Com
in new taxes handled
through the general fund.
More Yield Than d. C. Plan.
In each case the citizens esti-
mated their proposals would yield
more money than was estimated
for the same proposals by District
Finance Officer James L. Martin.
Spokesman for the citizens
group said they did so because
they felt the city officials had
been "unduly pessimistic" in
projecting income revenues for
future years.
Joseph A. Kaufman, fedora
ton president, in whose Office
today's meeting was held, stressed
that the action should not be
construed as complete opposi-
ton to the Commissioners pro-
posals. The citizens, however,
felt that some alternates should
be put forth in view of the cool
reception given some of the city
heads proposals. he explained.