Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-03-06
House Unit Acts
Monday on DC.
Tax Boost Bill
$l2 Million Measure
Appears Forced Into
Two-Week Delay
By DON S. WARREN

Two-Week Delay
By DON S. WARREN
The Districts $12 million new
revenue bill. approved late yes
Iterday by the fiscal subcommit-
tees in charge. will come up for
action by the full House District
Committee next Monday.
Chairman Mcmillan wanted
action earlier, but this was ruled
out because members had other
engagements. The point also was
made that members, not on the
fiscal subcommittee, should
have time to study the matter
before acting.
This postponement to next
week in District Committee &C
ton may mean a two-week delay
in getting the bill before the
House, since next Monday is
District Day." The next would
lbe two weeks away.
The only alternative would be
a special rule by the House Rules
Committee giving signals for
earlier action. That. officials
said, has not yet been contem-
plated.
Too Big a Job
Committee clerks said today
they could not possibly get the
bill and report into form for
presentation to the House for
next Monday even if it were pos
sible for the House District Com
mittee to act on the bill Thurs
day or Friday of this week.
The point was that, while the
District revenue bill was vital
and the timing important. it was
not so much so that a crash job
was indicated, some said.
The only difference was that
the Rabaut subcommittee of the
House Appropriations Committee
now is about to mark up the
1857 city spending bill and could
|use some information as to what
may be the revenues in the year
beginning July !.
The revenue and spending
bills were supposed to come
through the legislative mill about
1.-THE same time but now it appears
there will be something ff-beat
The slightly revised tax bill
Twas to be introduced in the
House today by Representative
Smith, Democrat of Virginia
head Of the House District Fiscal
subcommittee.
| Changes in Bill
Changes in the bill as against
what was reported as approved
last week involve the following:
!. Elimination of a proposed
application Of the District sales
tax to. sales made by the three
military commisSaries in the Dis
'Itrict. This was sharply opposed
lat a hearing yesterday fol
spokesman of the Defense De-
Ipartment, who said 1t would
damage morale and lead to taa
TROUBLES in the States and over
seas.
I 2. Elimination of a proposed
u per cent sales tax on seeds
fertilizers and other farm items
ESTIMATED to bring in about $40,-
1000 a year - Representative
IO'Hara. Republican Of Mime
Isota, said this was eliminated
because the cost of collecting this
tax would be too high Ito get
such a puny item of revenue"
Wine Tax Changes
i 8. Wines-The joint subcom-
Imittee decided to stand pat on
la tax of Is cents gallon on
wines containing IA per cent OF
less of alcohol and to leave at
As cents gallon the tax on
champagnes, but they voted to
reduce the increase in the tax
lon table wines from a proposed
As cents to SO cents a gallon.
i Some officials said the District
still would get the same amount
of added revenue. due to new
Estimates Of revenue and con-
sumption.
i The bill includes an authori-
cation of a 81 million increase
lin the Federal payment to the
District, to raise it from $40
million to $22 million. District
Officials are keeping their fingers
: crossed since last year, when the
authorization was for $40. mil
lion, but the House tried to cut
! down by 81 million. The final
action was a cut of So million
after compromising with the
/ Senate.
, Income Tax Raised
The pending bill also provides
for some substantial increases in
the local taxes. These include
A stepup in the individual in.
come tax by at least $50 million
, for a full year. by lowering the
, exemption from $4,000 to 81 ,00(
for the individual and to $4,000
for a married couple and pro-
. viding $500 deduction for de.
: Ipendents. Under this, the Dis.
! trict would begin a system Of
withholding next October !.
Application of the District
per cent sales tax to rental o.
personal property but exemptini
radio and TV films and record.
ings is estimated to bring in az
: additional $150,000.
Lower Price Meals Taxed
Reduction of the exemption o.
the 2 per cent sales tax on res.
Itaurant meals from the presen
so cents down to Is cents