Evening star. [volume] (Washington, D.C.) 1854-1972, 1955-03-06
Payroll Tax Hitting Residents
Of Suburbs Who Work in D. C..
Expected in New Fiscal Plan
Proposals to Ruise
Levies Nearly Ready
For Commissioners
By Hector Mclean

=
District of Columbia will be
presented to the Commissioners
this week, Commissioner Samuel
Spencer disclosed last night.
High among them is believed
to be some form Of payroll or
earnings tax designed to pro-
duce large amount of revenue
for the District from the many
thousands of Virginia and Mary
land residents who work in
Washington.
Mr.. Spencer made his dis
closure on Report to the Peo-
pie" over radio station WWDC.
He said a committee of high Dis
trict staff officials which has
been working for several weeks
on tax-boost proposals will make
its report in the next few days.
The group includes Schuyler
Lowe, director Of general ad-
ministratlon; Walter Fowler,
budget officer; James L. Martin,
finance officer, and Corporation
Counsel Vernon E. West.
Final Meeting Tomorrow.
Mr.. Lowe said the group will
hold final meeting tomorrow
and then report to the Commits
sioners either Tuesday or Thurs
day, depending on how quickly
their report can be put into
shape.
The four were set to work
hunting for new tax revenues
last December when final bal
ancing of the Districts next
budget estimates against their
estimated revenues showed it
would have to be sent to Congress
with a deficit.
A stronger spur to their hunt
came with the probability that
Congress will approve pay raises
for city employees this session
which could cost the District
from 81 million to So million a
year.
The District has no hope Of
paying any of this without new
revenue.
All Possibilities Studied.
Therefore, according to Mr..
Martin. the committee has been
stuuylpg all possibilities OF
raising tax revenue and will sug-
gest prlorlties for trying to get
them through Congress.
One handicap for the commit
tee, he SAID, has been in not
knowing how big a pay bill the
District will have to meet.
The Eisenhower administra-
ton has urged per cent boost
for all classified workers in the
Federal and District govern
ments. That, alone, would cost
the District about 81 million.
If a similar raise is granted
to school teachers-for whom the
Board of Education last week
asked a boost of $2.5 Million
and to police, firemen and hourly
wage workers, the total cost to
the District has been estimated
at 81 million.
However, Mr.. Martin said, it
could go as high as So million
il the 10 per cent boost approved
by the Senate Civil Service Com
mittee becomes the pay raise
pattern.
Long Range Program.
Despite the uncertainty" Mr..
Martin said, I'VE are planning
a long range program to put us
on an even keel on a permanent
basis-at least until some other
crisis comes along"
No one tax, however, can take
UP the Slack" Mr.. Martin said.
Nevertheless, he insisted, the
committee is very serious about
the payroll tax IN principle"
Mr.. Martin has long been an
advocate Of the payroll tax,
under which all salaries earned
III the District would be taxed
from q to | per cent, thus fore
ing Maryland and Virginia resi-
dents to contribute to the cost
OF unning the District.
Corporation Counsel West,
however, pointed out that this
has )een openly opposed by Rep
resentatives Hyde of Montgom-
cry County and Broyhill of Ar
lington. Even Il their opposition
could be overriden, he specialized.
Congress would probably load
any such bill with so many ex-
emptions that it would be thrown
out by the courts as discrimina-
tory.
Must Tax Earnings, Too.
limiting that the committee
may be working on some other
version Of the payroll tax idea,
CSee d. c. FISCAL, Page A-6.)