Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-01-15
DISTRICT
DISTRICT
On Tuxes,
Everybody
Gets in Act
BY HECTOR MCLEAN

Commissioners propose, but
Congress disposes.
This was spelled out with
crystal clarity last week at the
opening Of joint House-Senate
hearings on the Commission.
ers' program for raising local
taxes nearly $40 million a year
and boosting the Federal pay
ment by 81 million.
The formal pitch for the
program devised by the Com
Inissioners was made by Sam
uel Spencer, president Of the
Board of Commissioners. He
was reading to an audience OF
lawmakers, almost all of whom
were veterans Of the Districts
last tax increase session early
in 1854, and some of whom
were involved in the previous
rounds in l949 and 1947.
The lawmakers. members OF
the Fiscal Affairs Subcommit-
tees of the House and Senate
District Committees. devoted
scant time to finding out why
the Commissioners had chosen
one tax in preference to an
other.
Now the Way We Do II
Instead. they Immediately
started suggesting their own
ideas, usually rejecting condi-
tions in their home districts.
The first one came from
Chairman John L. Mcmillan OF
the House District Committee,
a South Carolina Democrat.
who suggested that the Dis
trict problems be solved simply
by increasing the city sales tax
so per cent-from two cents on
the dollar to three cents.
This is the case in South
Carolina. he said, and nobody
notices the impact of such a
tax. Besides, it would pro-
duce $40 million a year in
added revenues. which is Just
about what the city needs.
The next suggestion came
from Representative Howard
Smith. the Virginia Democrat
who Is chairman Of the Joint
hearings and head Of the
powerful House Rules Com
mittee.
To keep things simple, he
said, why not abandon the
Districts carefully graduated
income tax schedule-which
runs from 212 per cent on the
first $1,000 of taxable income
to 5 per cent on all over $25,-
000-and adopt something
similar to the Virginia Sched-
ule, under which 5 per cent Is
charged on all income over
$4,000.
Also, he urged. why not sim
ply take a list Of IL suggested
changes in the sales tax law
. and enact them as a block,
including a suggested doubling
Of the ! per cent sales tax on
groceries.
And from Representative
James c. Auchincloss. veteran
stockbroker and New Jersey
Republican, came the sug-
gestion of financing the
Districts building projects
through issuance of bonds.
thus making immediate tax
increases unnecessary.
Net effect Of the hearing.
consequently. was to demon
strate that the lawmakers will
write their own tax bill with
out any particular reference
to what the Commissioners so
carefully designed and pro-
posed.
And. chances are. their BILL
will produce considerably
more revenue than the Com
missiouers had proposed to
raise.
Unpleasant Job
This might keep them from
having to go through the
whole process again for az
long a time as possible. That
it is a distasteful process was
made clear by Representative
Joseph p. O'Hara, Republican
of Minnesota, who headed the
Joint House-Senate Committee
which handled the 1854 tax
bill.
Calling the tax sessions un-
pleasant, he wanted to know
how much Of a cushion" the
Commissioners proposal
would give the city against
future pay raises and other in
creases In costs.
Mr.. Spencer insisted he
thought the program would
leave the city In pretty good
shape-barring further raises,
and estimated the city would
have q % million surplus by
the middle Of 1858.
A round Of pay raises.
though. could eat up that
surplus In less than one bite.
II the lawmakers want to
forestall another tax increase
session for more than q year
or two, they'll have to find
considerably more money than
the Commissioners have even
thought about.