Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-01-01
I0xes

Congress also will have to
decide whether to enact the
tax program proposed by the
Commissioners to cover an
estimated $40 million deficit
In the District budget.
The city heads were plagued
throughout the year by the in
eyitable need for more revenue.
The problem grew to major
proportions when already
facing q deficit-they lost 81
million Of that revenue for the
current year as Congress cut
that amount from the annual
Federal payment to the Dis
trict. allowing only $18 million
out Of q requested $40 million.
The District was thrown
further into debt when Con-
gress approved major pay
raises for government workers.
including those employed by
the city. This cost the District
an estimated SO million a
year. none of which 1t could
afford.
The pay legislation had not
yet been approved by Con-
gress July / when the Com
missioners first considered set
ting the annual real estate tax
rate. Since the law requires
them to set 1t at a figure high
enough to cover all District
spending-and thus empowers
them to raise that tax by their
own authority-they put OF
the decision to see what would
happen on, the Hill.
Reel Estote Levy
This was over the objections
of Gen. Lane, who wanted to
set the rate then at the old
figure at $500 for each 500 Of
assessed valuation. He argued
that the Commissioners could
not then be held responsible
for what Congress might do
later.
Wait they did. however. until
1t became fairly clear what
was going to happen. Then
they considered a l0-cent
boost in the real estate tax.
Until the last moment. they
apparently had no plans for q
public hearing. with the vote
expected to be 2 to l in favor
Of the increase.
A hearing was announced
on two days notice, however.
the day after this column
pointed out the city heads ap-
parently were not planning to
let the public have a say on
the issue.
When the public spoke, the
consensus was that raising the
real estate tax would be a
piecemeal way of dealing with
the deficit. Anyway, 1t was
all Congress fault and should
be dropped in the lawmakers
laps when they come back to
town as part Of an overall
tax increase program. The
hearing reversed the inclina-
ton Of Mr.. Mclaughlin and
the Commissioners voted 2
to to keep the old tax rate
Mr.. Spencer dissented.
Now, waiting for Congress
Is a request to increase Local
taxes nearly $40 million and
increase the Federal payment
from $40 million to $22 mil.
lion. Also, of course, the city
heads will ask for restoration
Of the 50 million cut from ths
current budget,
The biggest tax bite would
come through slashing indi'
vidual exemptions under the
District income tax law from
$4,000 to $1,000, adding two
new upper level brackets ant
shifting to collect-as-you-g
withholding from salaries mex
October /.
The next biggest item is tn,
proposed 10-cent boost in tn,
real estate tax. Others wouls
increase liquor taxes IS cents {
gallon, boost wine and beel
levies, make diners-out pa,
the 2 per cent sales tax on al
meals over Is cents instead o.
on those over SO cents. ant
put 2 per cent taxes on loca
telephone bills and on ticket
to various entertainments.
Again. the final word Is VI
to Congress-.