Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-02-14
DC. Tax Yield
Estimates Still
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Legislators Seeking
Figure for Decision
On Added Levies
BY DON s. WARREN

Members Of the District Fiscal
subcommittee Of the House and
Senate probably will have to de-
eide for themselves how much
revenue will fiow from the pro-
posed toughened-up city income
tax, plan.
Capitol Hill and District tax
experts still are far apart in their
estimates.
Members Of the staff of the
Congressional joint committee on
internal revenue taxation have
estimated that the revised law
would bring in $1S.7 million in
the fiscal year 1957-58. District
Assessor James L. Martin said
his conservative" estimate still
Is SO million and that the maxi
mum he could calculate for the
first full year Of collection would
be $l2 million.
Riding with the final decision
viii be questions Of how many
layers of taxes. on top Of those
ALREADY planned. viii have to be
added to put the District budget
in balance during the coming
two fiscal years.
Reports on the issue were
sought by Chairman Smith Of
Virginia who Is also chairman Of
the Joint group.
Seeks Own Estimate
He said If the District and
Capitol Hill experts could not
settle the question. then the
joint fiscal group would have to
arrive at its own figure. He is
hoping to be in a position to
call a final meeting of the Joint
group within a few days.
The joint group is hoping 1t
can find a way to avoid some of
the added tax burdens. Aside
from measures already approved
by the Joint group, the following
are awaiting decision:
Doubling Of the sales tax on
groceries. raising the rate from
one to two per cent.
Adoption Of a 2 per cent sales
tax on patent medicines.
Adoption Of a fiat fee under
an occupational tax to be APP
piled to the professions.
Gives New Estimate
The STAFF of the joint Internal
Revenue Committee yesterday
gave Chairman Smith a new
statement on its trough esti-
mate" that the new law, which
would lower the exemptions un-
der the city's personal income
tax from $4,000 to 81 900 for the
individual and $4,000 for a mar
ried couple, would bring in $18.7
million.
This statement agreed there
would be some cutbacks from
this top figure for various rea-
sons. but the amounts were not
spelled out.
In their earlier report, the
Capitol Hill experts said:
Because of the lack Of data,
mo adjustments have been made
Ito take into account the tax
EFFECT Of the tax crediting ar
arrangements between the Dis
Itrict and the States which allow
similar tax payment to residents
Iof the District. The $18.7 million
tax liability also assumes full
taxpayer compliance"
Assessor Martin, accused Of
having underestimate receipts.
said he felt the Capitol Hill es-
innate was too high.
Full Compliance Unlikely
/ For one thing, Mr.. Martin
said. Because Of the major
changes proposed to be made in
the income tax law, you simply
lust cannot expect 100 per cent
compliance in the first full year
of operation"
/ He stressed that most Of the
Expected additional residents to
be brought into the tax field are
lin the low-income group and
THAT this would make it more
difficult in the beginning to get
lfull compliance.
Schuyler Lowe, general ad-
ministrator of the District gov
eminent, Is in agreement with
the Martin arguments, but he
said today he did not feel that
the Capitol Hill and District tax
people really were too far
apart"
Mr.. Lowe said he felt this
was so because the new state
ment from Capitol Hill agreed
there were reasons why the
, gross estimate about its $18.7
million would be cut down. He
and Mr.. Martin are trying to
whip their report into shape
for presentation to the Com
missioners in the hope that
they can lay their views before
Chairman Smith later today OF
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