Evening star. [volume] (Washington, D.C.) 1854-1972, 1955-05-24
Heavy Boosts
In Dc. Taxes
Being Studied
income, Beer, Realty
And Meals Included
In Revenue Proposal
By DON 5. WARREN


the House District Committee.
They will confer soon with a
similar subcommittee of the Sem
ate District Committee.
In this plan are five District
tax proposals estimated to bring
in an additional $6.875, 900.
They include higher taxes on in
dividual income, meals, real
estate, beer and wine.
The program also calls for an
increase of only 50 million in the
Federal payment.
Dismayed at u. s. Share
While all concerned stressed
that everything at this point was
tentative and that no decisions
had been made. some were dis
mayed by the inclusion of only
an extra 50 million in the Fed
eral share. Hopes had been
expressed some months ago at
the District Building that the
anticipated need for an addi-
tional $12 million to $13 million
could be split half -and-half
between District taxpayers and
the Federal Government.
The present plan under dis
cusSion would leave this at one
quarter or less of the extra
burden for the Federal Govern
ment.
Questions Immediately arose
as to whether this indicated that
the Budget Bureau was willing
to back an increase in the Fed
eral payment Of no more than
50 million.
District Officials said the
Budget Bureau as yet has reached
no conclusions and that plans so
far discussed in negotiations
there have been only a basis of
discussion" One official added.
however, there had been some
indication Budget Bureau off,
Gals might be receptive to an
increase in the $40 million Fed
eral payment to $22 million.
"In a Helluva Fix"
One member of the House sub
committee said the group had
explored the whole problem. I'VE
are in a helluva fix" he said.
At the present writing, the Dis
trict would not have even $40
million Federal payment. since
the House has voted--by a mar
gin of only one vote-to reduce
the Federal share to SIG million.
A fight will be staged in the Sem
ate to bring it back to $40
million.
Some more skeptical friends OF
the District, however. fear that
in clash between the House and
Senate, the best the District
could hope to get would be a
halfway victory, leaving the Fed
eral payment for the fiscal year
beginning July l at $18 million.
The current discussions have
no direct connection with the
pending District budget for the
fiscal year beginning July l. but
rather are looking to future Dis
trict revenues. Senate hearings
on the city appropriation bill are
to be started early next month.
Uncertain Elements.
The whole subject. however.
has uncertain and unknown ele-
ments in it because Congress has
not yet enacted bills for pay
raises for District government
workers, although they are being
considered. For this reason. the
exact costs of these are not yet
known, nor the dates when they
would become effective.
One of the definite things done
yesterday was that the subcom-
mittee asked District officials to
work up estimates of how much
revenue would result from an
increase in the general sales tax
rate from 2 to 3 per cent.
In the past, District officials
have fought off such suggestions
because they would put the Dis
trict into a bad competitive sit
uation with Virginia. which has
no sales tax, and with Maryland
where the tax is 2 per cent. This
proposal has one known cham
pion in the House District Com
mittee. This is Representative
Mcmillan, Democrat, of South
Carolina. committee chairman.
Mr.. Mcmillan has said he
would not apply a 3 per cent
sales tax to food or medicine.
Tentative Tax List
The tentative list of District
taxes taken to Capitol Hill for
the preliminary talks included:
A proposed lowering of the
exemption on personal income
taxes from $4,000 to $1,000 for
a single person and $4,000 for
married persons-estimated to
produce an additional 81 million:
and
A lowering of the exemption
Of the sales tax on restaurant
meals from so cents to Is cents.
One District spokesman said
the Commissioners views on
these two items appeared to be
pretty solid"
Other Items
The other three items in the
tentative tax plan would be:
A scent increase in the real
estate tax rate to raise it to
$2.25 per 500 Of assessed value
estimated to produce an addi-
tional $950,000;
A boost in the tax on beer
from SIPS to So a barrel, which
would bring in an addittonal
$950,000;
Imposition of a new tax of