Evening star. [volume] (Washington, D.C.) 1854-1972, 1955-03-13
D. {. Studying
Earnings Tax
Despite Foes
Col. Lone Admits
Higher Realty Levy
Poses q Danger

SFASS SoAJ 0fASSoSA w
position to . gross earnings tax
in the District, the Commission
ers still are considering it among
other revenue-raising measures,
Engineer Commissioner Thomas
A. Lane said last night.
Col. Lane pointed out during
the Report to the People" pro-
gram over Radio Station WWDC
there would be opposition to
raising taxes in other areas. too.
But, he said, the Commission
ers are exploring all possible
sources Of revenue to meet the
large increase in costs expected
from new Federal pay-raise
legislation.
Moving to Suburbs Feared
The gross earnings proposal
must be weighted along with the
advantages and disadvantages of
other taxation. he said, he ad-
mitted that experience in the
past cast doubt on the likelihood
OF it being passed by Congress.
Asked whether a higher real
estate tax here might have the
effect of driving more residents
to the suburbs, Col. Lane said
the overall taxes to which a per-
son would be subjected would
have a bearing on his decision to
live in a given area. Any in
crease could be expected to have
a detrimental effect, he noted.
Col. Lane said he had not
formed an opinion as to just what
would constitute lust" Federal
payment to the District. He said
smilingly that he would be very
happy" for the Federal Govern
ment to take over the cost OF the
payroll increase.
Warns Of Large Deficit
Commissioner Samuel Spencer
said last week that he would ask
the Bureau of the Budget to back
an increase in the Federal pay
ment-now $40 million-to 20
along with a multimillion dollar
raise in District taxes.
Mr.. Spencer disclosed his plans
after a briefing by city fiscal Of
ficials. They warned that the
city would find itself SIS million
in the red three years from now
unless taxes are increased.
Twenty-four possible" sources
OF tax revenue have been sug-
gested for consideration.
Congressman from nearby dis
tricts as we'll as others have ex-
pressed strong opposition to the
suggestion of a District tax on
gross earnings. applicable to
RI ST d ntS and non-residents
alike.
Hunt Successor to Rodes
On other subjects, Col. Lane
said that the District is search
ing among its own staff at pres
ent for successor to Milton
Rodes. who resigned earlier this
month as executive director OF
the District Motor Vehicle Park
ing Agency.
He said that the new Carter
Barron fringe parking lot is do
ing very we'll" despite the fact
that unlike the first one, the
South Capitol street lot, it
opened with no free bus fare
provision.
1T appears that the good
word about the express service
which Capital Transit is run
ming and the convenience Of its
use is being spread by word of
mouth" he noted.
On the proposal for establish
ment Of another fringe lot on
the old Industrial Home School
site on Wisconsin avenue. Col.
Lane said this is still being con-
sidered from the standpoint of
parking provisions that might
be needed in connection with
such recreation activities as
night ball games might be used
for fringe parking in the day.
time.
Objections Are Raised
Location Of a fringe parking
lot on the school site, long
planned as a site for recreation
development. has aroused OBJ
jections from recreation officials
and other residents.
Col. Lane said he was "sym-
pathetic" to a proposal that the
District in the future might
charge an extra fee for the is
suance Of special tag numbers
on request. He said he had dis
cussed it with Traffic Director
George E. Keneipp.
1t would depend on how much
1t was desired in the District.
he pointed out. Col. Lane noted
that the proposal would require
action by the Commissioners and
possibly by Congress. He added
that the advice of the Citizens
Advisory Committee might be
obtained on the subject.
Col. Lane reported, following
an inspection trip to the site
Of the new East Capitol street
bridge. that the construction is
coming along very we'll" He
said later that the bridge itself
should be completed in June, the
finished by the end
Of summer and the crossing
ready for traffic by about Octo-
Der.
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