Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-02-06
District Tax Bill
Action Put Off
Another Week
Hope to Avoid New
Levies on Groceries
And Other Essentials
BY DON S. WARREN

04Ch4hCAo Va VA4V JOAAAb 4A0A1N
Senate District Fiscal Subcom-
mittees today odered a weeks
delay in drafting a new $l0.1
million city tax bill, with sug-
gestions that placing further
taxes on groceries or other
necessities might be avoided.
The delay was ordered, it was
explained by Representative
Smith. Democrat of Virginia,
chairman of the joint fiscal
group, because of questions
raised as to the accuracy of esti.
mates by District officials of how
much new revenue would come
from revision of the District
income tax law.
Reports tc the committee by
District officials included an
estimate that proposed income
tax revlsions would bring in an
additional $2.2 million.
New Figures Produced
At today's closed-door session
of the joint group. Chairman
Smith said. questions as to che
accuracy of this estimate were
raised by Representative
O'Hara. Republican of Mime
sofa, and by Representative
Harris. Democrat of Arkansas.
The latter. Mr.. Smith said. pro-
duced some revenue estimates
differing from those of city Of
ficials.
In view of this, the Joint
group agreed to hold everything
in allegiance until 1920 am.
next Monday. to await new CAL
culations.
Representative Harris said he
had received communications
from some business people in
Washington which raised the sug-
gestion that the proposed changes
in the income tax law might be
much higher than S2.2 million
for the first year of operation or
even the $3.8 million for later
years. ..-.
May Top 81 Million
He said he was concerned over
the fact that under present law,
based on estimates for 1852,
there were about $1,000 taxpayer
returns to the District and that
with the lowering of the exemp-
ton level there should be a great
increase in the number of such
returns.
One quick check indicated, he
said, that the receipts might
rise to s4.l million. He said he
did not profess TO know how
many paying taxes back home
still would be exempt in total or
in part from the District per-
sonal income tax levy. But he
said he thought the subject SO
important it should be checked
by agencies independent of the
District--the congressional group
on internal revenue taxation and
by the Treasury.
Tentatively the fiscal subcom-
mittees of the House and Senate
District Committees had agreed
last week to drop some of the
new or increased taxes proposed
by the Commissioners. One of
these was proposed per cent
tax on the price of admission to
amusement places. There also
was tentative idea of rejecting
a 2 per cent tax on local tele-
phone bills, although this action
was not final.
Must Find New Sources
Any such actions, it was real
lied. would mean that Congress
would have to find some other
sources Of revenue to produce
SIS million or more If the bill
would produce a needed $40 mil
lion. plus an increase in the
Federal payment, to avoid a
deficit in the next fiscal year.
Therefore, the lawmakers on
District revenue found them
selves faced with the prospects
OF an extra increase in the Fed
eral payment or the adoption of
some alternate tax measures.
These included an increase from
/ to 2 per cent in a sales tax
on groceries or the removal OF
some medicines from the sales
tax exemption list.
There has been some definite
resistance to these two alternate
steps, particularly in view of a
tentative decision by the joint
District fiscal group to raise beer
taxes 25 cents a barrel, instead
OF by SITS a barrel to make a
total Of SO barrel, as recon-
mended originally by the Com
missioners.
Mr.. Smith frankly told re-
porters at the end of a meeting
OF the JOINT group today, I'VE
did not get anywhere today"