Evening star. [volume] (Washington, D.C.) 1854-1972, 1955-10-29
City Heads Ponder Ways
Of Raising $40 Million
New Revenue
Ideus Studied
After Hearing

$40 million q year In new rev.
Ienue. with repeated demands BY
l47 citizens ringing in their ears
that all or much Of It come
Through q raise In the annual
Federal payment.
This was the principal, theme
Iof . day-long public hearing In
the board room Of the District
Building yesterday.
A second insistent demand by
the city's voteless taxpayers was
for imposition Of a payroll tax
of half Of ] per cent on gross
earnings in the District. This
would hit most persons working
in Washington Including sub
urban residents Of Maryland
and Virginia.
The idea was struck q presuYn-
ABLY fatal blow, however, BY the
testimony Of members Of the
Virginia and Maryland legisia-
lures. They warned that. If TIN
Commissioners push the propos-
lai, they will endanger passage Of
their whole revenue program in
Congress.
Opposes Pay Tax
Blair Lee Sd. chairman Of the
Montgomery County delegation
ito the Maryland General AS
lsemhly and head Of q special
legislative tax-hunting commit
tee, urged that you do not press
for a payroll tax in the District,
which would aggravate the sit
Iuation and set my constituents
Ito screaming for retaIiatory
tax measures" 4.
He promised that, If Congress
broadens the District income
tax by lowering personal exemp-
tons from $4,000 to $1,000, he
win introduce bill at Annapolis
TO abolish the Maryland income
tax on non-residents. which now
hits District residents working
there.
Support for the move, Mr.. Lee
lsaid, has been promised by the
head Of Maryland's income divi-
lsion. He pointed out, however.
THAT lowering the exemption in
the District to $1,000 would
practically wipe out any lrc0me
tax payments to Maryland by
District residents. This is be-
Icause Maryland allows credit for
payment Of District taxes which,
Iiunder present law, are small be-
cause Of what he called king
sized" personal exemptions.
Echoed by Mann
! Mr.. Lee. who also opposed i'm
position Of a tax on personal
service business" Clawyers, GEN.
fists and doctors) was echoed BY
Harrison Mann, Arlington del
'legate TO the Virginia Legislature.
'Iwho sited Congressional OPPOSE
ton to the payroll tax.
Il The broadening OF the income
tax through lowering exefnp-
ltions and adding new top htack-
lets, won general approval. Most
lother tax ideas suggested several
weeks ago by District officials
Iran into trouble.
4 An increase Of at least 5 cents
lin the real estate tax rate (now
500 on each 500 Of assessed
Ivaluation) appeared inevitable
las result Of reluctant" ac-
Iceptance Of it by the Board OF
Trade and the Washington Real
Estate Board. The Commits
lsioners have been considering a
Decent raise.
Although the Commissioners
were urged repeatedly to stand
'3up to Congress" in demanding
AN increase in the authorized
Federal payment Of $40 million.
the only practical political help
they received was from John B.
Gilliland, president Of the Dis
.. Itrict Congress Of Parents and
!. Teachers.
He said the National CONGRESS
Iof Parents and Teachers has
been persuaded to afiopt 4 rec-
lommendation I'd its member
that they urge their Congress-
men to SUPPORT a more aden,ate
Federal payment To the District
,r...,s a. r.r,
- =. sono
Mr. eiilniand ied 9 group q
witnesses VINO protested against
recent cuts IN the school budget
ana volunteered TO accept tax
increases tnat would benefit the
scnooiS.
Inc only stronger position 70
support OF TAX increases was
taken ny Charles Donoiloe f0f
cne washington cnapter q
Amerlcans LOT Democratic Ac-
lion: Negrettlng reported cuts
oy tne commissioners 10 school,
neaitn ana WeiIare Dudaets 1ol
tne next fiscal year, ne proposed
YAK increases OF $ls million g
cover an expansion Of District
services.
Opposition 70 any increase u
the safes TAX was general, q
We're demands Tor an overall
iDelt~ttQI1fenff1Q on civ Sflen0i11H