Evening star. [volume] (Washington, D.C.) 1854-1972, 1955-04-29
Higher Taxes
Urged 10 Solve
D. {. Problems
Louisiono Legislator
Asks Rise at House
Budget Hearing
By DON S. WARREN

The District apparently is fac
ing a serious contest over the
size Of the Federal payment, it
was indicated by a member of
the House Appropriations Sub
committee in charge of the Dis
trict's budget.
He is Representative Passman.
Democrat, of Louisiana. He sug-
gested last night. at a pubic
hearing on the city's SITS mil
lion budget, that the way to
solve the Districts financial
problem is to raise District taxes
His remarks came in the midst
Of three-hour hearing for Dis
trict citizens, when most wit
nesses were urging an increase
in the budget to cover gaps in
the city's public school program.
Mr.. Passman's attack on the
District drew an immediate re-
Spouse from one Washington
citizen, Ralph E. Cushman of the
Federation of Citizens Associa-
tons, who defended the position
of the city.
Representative Passman, a vet
eran in the House but a new
member Of the District appro-
priations unit. interrupted long
string Of witnesses who were
testifying on school needs to say
the way for the District to meet
its financial problem is to ask
the Commissioners to propose
more District taxes.
Scent Cigarette Tax
Il don't want to offend any
one" he said, "but I know from
checks on your tax schedules
that your real estate is not as
sessed at actual value. Some of
it is assessed the same as it was
20 years ago.
I'm Louisiana, we pay a tax of
8 cents a pack on cigarettes. In
the District the cigarette tax is
2 cents.) People yelled it would
drive business out Of the State,
but they are selling as many Gig
arettes as ever"
His solution of the Districts
financial problem, without any
mention of the So million to $12
million that would be needed to
meet impending pay raises and
pending operation cost increases,
was:
"You people can correct your
problems if you will start a drive
to get your taxes UP to some of
the States"
He suggested that items of
millions" of dollars of revenue
could be obtained, If the District
would bring into taxation small
loan companies. He said there
is only one in the District. but
there are $50 of them immedi-
ately outside the city.
He also said, in a later inter-
ruption of the hearing, that he
had been informed the per capita
income of the District is greater
than that of any other city in
the world"
Points Challenged
Mr.. Cushman, the next wit
ness. interrupted the hearing to
challenge several of the points
made by the Louisiana Con-
gresham. He said:
Granting that the per capita
income is the greatest, that does
not mean that all people max
ing income in the District pay
taxes here. The high-income
earners mostly live outside the
District"
He pointed out also that Con-
gress itself, in 1913. had ex-
cluded small loan Arms from
operating in the District.
Mr.. Passman responded that
he was suggesting Congress
now be asked to change the
law. Such a bill is pending be-
fore the House District Com
mittee.
On the Louisianan's major
point-that the District raise
it's taxes-Mr. Cushman de-
clared:
Its a situation in which you
can't make the residents Of the
District pay more than people
on the perimeter of the District,
or they will move out"
The whole subject was spanked
by testimony by Mrs. Henry A.
Bartlett, president of the fed
Grafton, who said Congress
should vote the District a larger
Federal payment than the
present $40 million per year.