Evening star. [volume] (Washington, D.C.) 1854-1972, 1955-04-30
D. {. Fund Plea
Again Attacked
ByLegisIators
Federal Payment
To City Too Low,
Citizens Protest

to be grateful the Federal Gov
eminent is located here.
Representative Rabaut, Dem
ocrat. of Michigan. chairman of
the House Appropriations sub
committee handling the Dis
trict's SITS million budget for
the next fiscal year, tangled with
one of 81 witnesses at the last
of two night public hearings on
the budget and declared:
"It you didn't have the Fed
eral Government here you'd be
a little town on the river. The
Federal Government is pouring
greenbacks into the city"
His outburst was seconded by
Representative Passman. Demo-
crat, Of Louisiana. who insisted
for the second night that taxes
are too low in the District.
Washington, he said, has the
highest per capita income of any
city in the world" but takes
here represent only "a to 81
per cent of taxes paid in the
average State"
Tangles With Striner
What Mr.. Rabaut later called
his little alteration" came dur
ing testimony by Benjamin
Striner, chairman of the Fiscal
Relations Committee of the Fed
Grafton of Businessmen's Asso-
Citations.
The Federal payment issue
came up again eight witnesses
later during testimony by John
P. Cahill. president of the Office
Employees International Union,
Local No. 2. AFL, who also
called for an increase.
Mr.. Rabaut reminded him that
payment was increased last year
from $12 million to $40 million
and demanded, How high does
the gentleman think it ought
to go?"
Mr.. Cahill pointed out that
the Federal payment ratio was
once $3.50, that the Federal
payment now represents only IA
per cent of the city's general
fund budget. and recalled that
taxes also were increased last
year
Insisting that "we're just as
interested in the District as any,
body else" Mr.. Rabaut declared,
"the Federal Government does
a great deal for the District. too.
It is an attraction that brings
people and money to the Dis
trict."
Striner Asks Cutbacks
The chairman's clash with Mr..
Striner came as the latter out.
lined proposals to halt what he
called the greatest spending
jag" in the Districts history. He
was the only witness to cali for
cutbacks in spending, and urged
a moratorium on any new taxes
this year"
At the same time. however,
MI. Striner suggested imposition
OF a withholding payroll and
earnings tax" elimination of
business personal property taxes,
lowering of the income tax ex-
emption from $4,000 to $4,000.
an increase in the Federal pay
ment. an extension of the unin-
corporated business tax to pro.
LESSONS and corporations now
exempted and a boost in the
hotel room tax to per cent.
IL was at this point that Mr.
Haoaut cut in. What do you
want to do?" he asked. Drive
al these people away?"
The Federal Government ,,
Mr.. Rabaut added, lis to this
town what the automobile bust
ness is to Detroit. We're building
Two new office buildings, extend
ing the front of the CAPITOL
Building and you've got a mini
mum" funded debt while every
other city pays a third of its
revenue for debt service.
There are some places in this
town which haven't been assessed
Tor 20 years, and every time we
try to do something about it they
want a 10-year program"
Passman Chimes In
Mr.. Passman Joined the fray
contending your taxes represent
80 to "a per cent of what we paw
In my State. If you want i'm
provements, where are you going
to get the revenue except frors
the businessmen who pay the
taxes?"
Answering Mr.. Rabaut, Mr..
Striner declared, Il resent deeply
the position of the chairman"
who told him. You don't resent
1t any more than the chairman
OF this committee does yours
it's two-way street"
After the hearing. Mr.. Rabaut
explained. When someone
comes in and wants to cut this
and cut that and presents a
program to load it all on the
little people. blow up. It's just
not cricket"
Celebrating on his charges Of
Thursday night. Mr.. Passman
said:
THE District could increase
its revenue through additional
taxation by $50 million annually
and still have per capita tax
burden less than that of the
average city and State in our
country"
He contended the louisiana
cigarette tax is eight cents per
package; the District cigarette
tax is only two cents per package.
The Louisiana beer tax is $40
per barrel; the District beer tax
is $1.25 per barrel.
I'm Monroe, La, the real es-
tate ad valorem tax is As mills