Evening star. [volume] (Washington, D.C.) 1854-1972, 1955-12-02
DC. Reveals Details
Of Tax Rise Propose!
New Leyies
Seek to Raise
$40 Million
BY HECTOR MCLEAN

Details of O program to in
crease local taxes by nearly $40
million were disclosed today by
District Commissioner Samuel
Spencer.
He declared the District Com
|missioners will recommend the
program to Congress, including
IA request for a 50 million in
crease in the clty's presently au-
thorized $40 million Federal pay
Iment,
The list of taxes includes boosts
lin individual income taxes (to
be withheld from pay checks
starting next October /. like the
Federal income taxi; on rest
laurant meals; on wines, beer
and liquor, and on real estate.
| New taxes will be proposed on
Ishort-term rentals of personal
property. communication service
dncluding telephone calls made
locally and local telegrams) and
ION admissions to any entertain
ment for which a fee is charged.
Drop Earnings Tax
The Commissioners dropped
any plans to recommend impo-
sition of a gross earnings tax on
all income earned In the Dis
ltrict, to be paid by residents Of
suburban Maryland and Virginia
as well as by District citizens.
Mr.. Spencer said the proposed
increase in the Federal payment
has been discussed with the Fed
eral Budget Bureau. The bureau,
he said, has mot finally accepted
lit, but will consider it as part Of
our proposal"
Specifically, the individual in
come tax increases would come
Through reduction of individual
Exemptions from $4,000 to ST.
1000, with $4,000 allowed for the
head of a family. An exemption
of $500 would be allowed for de-
Ipendents. New top level brack-
ets would be added, providing a
IA per cent tax on incomes over
ISIS, 900, ~ per cent on incomes
lin excess of $4,000 and 5 per
cent on all income over $4,000.
This is estimated to. yield $2.2
million in the coming fiscal year
and $3.8 million a year there
latter.
| Hits Property Rentals
Proposed application of the
Ia per cent sales tax on short
term rentals Of personal property
would hit principally construc-
Ition equipment. motor vehicles
and chairs. Mr.. Spencer said. 1t
lis estimated to yield $150,000 q
year.
The communications tax would
apply the Districts per cent
sales levy to local telephone calls
and kilograms, with an estimated
yield of 100000.
The sales tax on restaurant
meals would be increased by
applying it to all meals costing
more than 10 cents. instead of
only on those costing more than
so cents. Estimated yield is
5000, 900.
The wine tax would impose a
new 20 cents a gallon on table
wines and increase to As cents
the 20 and 80 cent taxes now
charged on other wines and
champagne. Estimated yield is
SITS, 900.
Liquor Up S Cents
The proposed liquor tax boost
would cost purchasers 5 cents
on each fifth of liquor, and in
crease the rate from 81 a gallon
to SIPS, with an estimated yield
of $980,0O0.
The beer tax increase would
boost the levy from SIPS a bar
rel to So for a yield of 1925, 900.
The proposed 2 per cent adj
missions tax would be applied
ito motion picture theaters and
all other places of entertain
'ment which charge admission.
Revenue to the city is estimated
lat 100000.
The Commissioners said the
real estate tax would be in
creased 10 cents from 1920 for
each 500 Of assessed valua-
ton to $3.50. Mr.. Spencer said
mo legislation is proposed and
that the Commissioners plan to
increase this levy on their own
Authority.