Evening star., 1955-07-07
District Seeks
To Speed Boost
In Income Tax
Commissioners See
Lawmakers Today;
Bill Being Drafted


Speedy congressional approval
OF a bill to increase District in
come taxes will be sought today
by the city heads.
Commissioner Samuel Spencer
said Representative Smith. DEM
ocrat of Virginia, chairman OF
the House District fiscal affairs
subcommittee. had agreed to in
troduce the bill. A draft was ex-
pected to be ready by noon.
Mr.. Smith arranged a joint
meeting of the House and Sen
at fiscal affairs subcommittee
for 3 pm, to be attended by the
Commissioners and their tor
fiscal advisers.
Mr.. Spencer said the Commits
sioners planned to wait until the
adjournment of Congress, tenta-
lively scheduled for July 80. be-
fore proclaiming the city's real
estate tax rate for the current
year.
If Congress fails to go along
with the income tax boost, there
Is little doubt that an increase
will be requested in the real
estate tax above the present
level-$2.20 for each 500 OF
assessed evaluation.
Even with the income tar
boost, however. a higher real
estate rate may be requested.
Pay Raises Likely
One main reason is that Con-
gress. may grant pay increases
for teachers, police and firemen
which could add another 81
million a year to city expenses
The Commissioners decision to
push the income tax boost
was reached at a late afternoon
beard meeting behind closed
doors yesterday.
It ran counter to a recon-
mendation of the Citizens Ad-
visory Council. which met for
four hours yesterday. and urged
that tax increases be deferred
at this time in order that public
hearings can be held"
The Commissioners made theil
decision in the face of an uncer-
tain revenue situation for the
District.
Revenue Committed
Spending already approved by
Congress for the new fiscal year
is expected to eat up all but about
$114.000 of the city's anticipated
income. The Commissioners, by
law, may not let the District &C
into the red.
The income tax increase is ex.
pecte6 to give the District a boost
of 100000 during the fiscal yeal
and 81 million in fiscal 1857
which begins next July /.
The proposed income ta1
changes would reduce exemp.
tions from $4,000 to $1,000, o.
$4,000 for each married couple
Top-bracket taxpayers, undel
present law, pay 4 per cent OF
all income over $4,000. Undel
the new plan, a AZ per cen
bracket would be established TO,
incomes over $4,000, and a
per cent bracket for income!
over $4,000.
Commissioner Spencer salt
the Commissioners have no plal
during this session of Congress
to seek increased Federal aid
Congress, in approving the city,
spending program for the cur
rent year, allowed only $18 mil
lion in Federal payments ou
of $40 million authorized by law
Citizens Motion
The position of the Citizens
Advisory Council was expressed
in this motion:
"That the subject of increas
Ing taxes should be deferred a
this time in order that publi
hearings can be held. afte
which the Commissioners woult
then be in a position to hav
a more informed public opinion
in the matter; and that if Con
gress further enacts Legislation
with respect to any wage o
salary increases, or other addi
tional mandatory expenditure.
the Federal contribution shoul
be increased to take care o
such additional obligations.
"That 1t is further resolve,
that this resolution should. i
no way, be construed or inter
preted as being opposed or un
favorable to proposed salary 9
wage increases, such as tina
which has been recommends,
) by the Commissioners for tn
public school teachers"