Evening star. [volume] (Washington, D.C.) 1854-1972, 1954-01-29
Gist Of Testimony on Works Program

public tDorks hearing at the
Capitol today included:
Edward ]. Schmuck, counsel
for Acacia Mutual Life Insur-
ance Co.-The proposed increase
in the present 2 per cent insur-
ahce premium tax to 2.5 per
cent would grossly penalize"
insurance companies domiciled
in the District. This would be
due, to the fact that 80 States
have "retaliatory" insurance tax
laws under which District COM
panies would have to pay pre-
MUM taxes on business con-
Quoted in those States at the
same rate set here. Because the
proposed tax rate would be
higher than the prevailing rates
in the majority Of States, Wash
ington insurance firms would
feel the increase most In their
business outside the District,
since the bulk Of the business
of local companies is in the
States.
The increase, moreover, would
ultimately have to be absorbed
by policy holders either through
higher premium payments or
lower dividends.
David L. Kreeger, general
counsel, Government Employees
Insurance Co.-Indicated that ii
the insurance premium tax pro-
posal is adopted. local companies
might find it worthwhile to
switch their charters to another
State having lower tax provi-
sions because the proposed in
crease would seriously impair
the growth Of insurance COM
panies here.
billiard Schulberg, executive
director, District Retail Liquor
Dealers Association - Opposed
increases in the alcohol beverage
excise taxes, which would reduce
the volume of sales and cause q
marked decrease" rather than
increase, in over all revenue col
lectionS.
James F. Kehoe, District De-
partment, American Legion-In-
troduced resolutions adopted by
the department against all of
the proposed increases in the
cigarette. beer and liquor, tele-
phone and automobile registra-
ton levieS and suggested instead
an increase in the Federal pay
ment to a level of at least 40
per cent of total District ex-
penditures. Opposed, incident
ally, any payroll tax on wages
earned in the District.
Horace Walker, director, Met
ropolitan Retail Gasoline Deal
ers' ASSociation-strongly OPP
posed a 1-cent increase in the
District gasoline tax to 6 cents
the same level as Maryland
and Virginia State taxeS-and
charged such an increase would
cause drops in gas tax revenues.
Citing the last l-cent gaso-
line tax raise in June. 1852, he
said that for the is months
ending September /, 1853. Dis
trict gas sales dropped 40 mil
lion gallons under the previous
Is months. while Maryland sales
increased 7 per cent and Vir-
ginia's increased 81 per cent.
Charles w. L. Briscoe, of Speed
and Briscoe. truck terminal
f1rm-Opposed the gasoline tax
raise. citing advantages it would
give to other States for gasoline
sales to truckers.
Aaron Goldman. president. G..
B. Macke Corp. vending machine
distributors-Opposed a cigarette
tax increase from to 2 cents.
He contended this would harm
$500 retailers here who already
are hard put to compete with
cigarette sales in nearby States.
which have no such taxes. He
predicted such a tax would cut
sales by more than Is million
packs a year.
John L. C. Sullivan, Central
Businessmen's Association-Op-
posed the entire formula for
financing the proposed $305 mil