Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-01-31
District Tax Bill
Expected TO Be
Ready Monday
Congress Unit Due
To Complete Job at
One More Meeting
BY DON s. WARREN

By DON s. WARREN
District revenue lawmakers on
Capitol Hill seem confident they
can agree on new city tax
measure calling for a SOL mil
lion rise in taxes and a 50 mil
lion increase in the Federal
share, with just one more meet
ing next Monday.
The Joint Fiscal Subcommit-
tees of the House and Senate
District Committees devoted five
hours to the problem yesterday
without quite finishing the job.
But Chairman Smith, Demo-
lcrat Of Virginia, said at the end
of the day: I'VE have made very
considerable progress. ! believe
we can finish writing up a bill
at one more session next Mon
day"
Higher q. s. Payment
This bill, he seemed confident,
would call for a 50 million in
crease in the Federal share above
the currently authorized $40
million (only $18 million actually
granted for this fiscal year, and
flor an assortment of new or
higher city taxes raising at least
$40 million a year more.
Tentatively, it is reported. the
Joint fiscal group has decided to-
reject q proposed 2 per cent tax
lon the price Of admissions to
places Of amusement and a SIM
liar charge against local tele-
phone calls.
The group also decided to rec
Iommend only a small increase
lin the tax on beer. The Com
Imissioners submitted a plan to-
raise this tax from $1.25 to So
Ia barrel. The subcommittee
plans to recommend an increase
Of only IS cents.
Substitutes Needed
Some revenue substitutes must
be found, therefore.
Representative Smith and
Iother leaders in the joint group
said they could not discuss al
ternatives not yet adopted. But
1T appeared one idea under dis
cusSion was o proposed nat IL
|cense fee for q long list OF pro-
|fessional and business operators.
In their search for new and
needed forms Of taxes. however,
the fiscal subcommittee. also
seems, to be considering some
new sales tax levies on medicines.
Up for discussion. 1t seems, are
questions as to whether the Dis
trict 2 per cent sales tax should
he applied to patented medicines.
Discussed yesterday. but not
adopted, as yet. at least, was
Ia question Of raising the District
sales tax on groceries from / to-
q per cent. One report was that
the Commissioners would not go
for this. They had not included
1t in their proposed program.
Opposing Views
One or more members of the
Joint congressional group re-
|portedly asked, who would know
the difference-the day-by-day
amount Of the tax is so small"
But others repeatedly asked.
How could we raise the tax on
food if we are going to cut back
the extra levy on beer"
Others doubted that a per
cent increase on groceries, all
though involving an estimated
Increased revenue of $2.2 million
10 year, would force any appreci-
able number Of District residents
to do their shopping in Virginia
Ior Maryland
There was some talk also Of
raising the Districts general
sales tax from 2 to 3 per cent.
Possible Revenue Raisers
Reports seemed to agree that
the joint group would recon-
mend some OF these basic sug-
Igestions made by the Commits
Isioners:
That there be a lowered ex-
emption and a higher rate on
taxable incomes above $25, 900.
That the Commissioners be al
lowed to proceed with their
plan. without legislation, to raise
the city's real estate tax rate to
50 80 per 500 of valuation to
bring in an additional $1.9 mil
lion.
That the sales tax or restau-
rant meals be applied to all bills
of more than Is cents. This tax
now is levied only on meals SELL
ing for more than so cents. If
adopted this change would
hiring In an add;tiO,o1 conn mn