Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-02-05
Legislators Plan
Final Drafting
0fD.C. Tax Bill
subcommittee Meet
Tomorrow to Seek
$40 Million Revenue
BY DON S. WARREN

Dy DOlN % w nAOAGA@AN
Members of the House-Senate
District fiscal subcommittee will
meet at 10 am. tomorrow with
the hope of arriving at a final
draft of a city revenue bill that
would produce not less than $10.1
million to cover city deficits.
However, while some of those
concerned voiced the hope that
the tax and revenue problems
will be ironed out at the ses-
sions. certain members have
stressed that some problems are
not minor and would have to be
met head-on.
There has been general agree
ment that the joint subcommit-
tee will recommend an increase
of So million in the size of the
Federal payment-from an au-
thorized $40 million to $22 mil
lion. But it appeared last night
that this might not be enough
in view of the refusal of the
House to 60 along with the au-
thorized sum.
For instance, last year. when
the Public Works Act for the
District authorized a Federal
payment of $40 million. the
House insisted on cutting this
back to SIC million and there
was a compromise with the SEN
ate on the actual grant of $18
million.
Suggests Safety Factor
With this background, one
member of the Senate fiscal sub
committee said last night he
would suggest seeking a Federal
payment of at least s24 million,
so that when a necessary COM
promise was made with the
House. the District might be Civ
en- as much as $40 million-said
by city officials to be necessary
to balance the 1857 budget.
Several other issues must be
faced
Tentatively. the joint fiscal
group has voted to reject pro-
posals of the District Commits
sioners for the adoption OF a.
2 per cent tax on admissions to
all places Of amusement. includ-
ing the ball park, theaters and
other places. A matter of $780,
900 in annual revenue is involved
in this
Also involved is a question of
rejecting a proposal from the
city to apply a 2 per cent sales
tax on local telephone bills. which
involves matter of 100000 in
city revenue"
Groceries Tax an Issue
If these and other changes
In the program submitted by
the District Commissioners are
adopted by Congress. the law
makers will have to find other
sources of revenue which would
produce at least SIS million and
maybe more.
Also at issue is whether the
Joint fiscal subcommittee should
recommend an increase from /
per cent to 2 per cent in the
sales tax on groceries.
So far this question has been
held in allegiance by the joint
fiscal group. There are a lot
of arguments. One is that If
adopted it would hit low income
groups. Another is that it is
a ready source Of revenue that
would not be missed too much
from day to day as householders
buy their goods.
A contrary argument is that
housewives might elect to make
once-a-week shopping trips to-
the suburbs to buy large quanti-
ties of canned goods and other
staples instead of paying the
extra tax that might be required
by the District.
This is not a minor matter
because it is calculated that a
boost from / to 2 per cent in
the sales tax on groceries would
provide the District with an ad-
ditional $2.240.0o0 a year.
Cigarette Hike Weighed
Another problem is whether to
raise the District tax on cigaret-
tes, now / cent a pack. to 2 cents
a pack or whether to make it,
subject to the Districts general
sales tax of per cent. This
involves at least 100000 a year.
Another issue is whether to-
levy some kind OF a special tax;
against professional men con-
Quoting their operations in the
District-lawyers, doctors, den
See ID. c. REVENUE. Page AS