Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-01-05
s. Million Rise
Payment
.ToD.C. Backed
White House Agrees;
Tax Boost Program
Ready for Action
BY HECTOR MCLEAN

The White House today put its
stamp of approval on the Com
missioners' request to Congress
for a 50 million increase in the
annual Federal payment to the
District.
This was disclosed as the city
heads sent to the House their
$40 million program Of proposed
tax increases on local residents.
Chairman Smith of the House
District subcommittee on Fiscal
affairs said he would introduce
the measure today. 1t will be
considered tomorrow at a meet
ing of the full House District
Committee.
Hearings on the program will
begin next Wednesday before
joint sessions Of the Fiscal At
fairs subcommittee of the Sen
ate and House District Commit
tees.
Main Items Unchanged
Principal items of the program
appeared to be unchanged from
those disclosed by the Commits
sioners early last month.
In a letter to Speaker Ray
burn, Commissioner Samuel
Spencer pointed out that the
heavy revenue increase program
was made necessary by wage in
Icreases last summer for Federal
and city workers which cost the
District 49, million year.
OF the city's budget for the
fiscal year which begins next
July /, Mr.. Spencer said the
Commissioners have endeavored
Ito make economies in our current
Operation wherever possible while
at the same time maintaining
services at q level reasonable
and appropriate to the Capital
of our Nation"
Some Items Added
Mr.. Spencer said. 1--WE have
included in the budget additional
expenditures where the growth
of the city or other considera-
tons made them vital to the
Well-being Of the community. On
the other hand, We have neces-
sarily cut out many items re-
lquested by the departments.
I'VE believe that the proposed
budget will adequately meet es-
Isential operating needs and at
the same time provide capital
expenditures sufficient to carry
forward the public works pro-
gram at approximately the aver
age necessary to fully complete
the 10-year program"
Details of the proposed budget
will be disclosed January Is as
part of President Eisenhower's
budget. which will be sent to
Congress that day.
The Commissioners repeated
their promise to ask Congress to
restore 50 million cut from the
$50 million authorized Federal
payment in the current year.
Their request for 50 million
increase in the authorized pay
Iment starting next year would
raise the approved figure from
$40 million to $22 million year.
Exemptions Cut
The tax program calls for re-
Iduction of individual exemptions
under the District income tax
law from $4,000 to $1,000, or
$4,000 for the head of a family.
Deductions of $500 would be
allowed for dependents and two
new top-level tax brackets would
be added.
These changes would affect all
Income earned since last Sum-
day. A collect-as-you-go plan
of withholding taxes from pay
checks would be instituted start
ing next October /.
These income tax law changes
are estimated to produce $2.2
million in the coming fiscal year
and $3.8 million thereafter.
Next biggest increase would
come through a 10-cent increase
lin the city's real estate tax rate,
from 1920 for each 500 of as
Isessed property valuation to
See ID. C. BILLS, Page AS