Evening star. [volume] (Washington, D.C.) 1854-1972, 1957-05-09
DC. Asks U. S. Fund
Despite TaxWindfa||
Full $23 Million
Sought; Revenue
Above Estimates
BY JAMES G. DEANE

The District will press for the
full authorized $23 million Fed
eral payment despite an appar-
emit windfall in return from the
city's stiff new income tax.
This was stressed by city Of
ficials today on the heels of
disclosure that the new tax al
ready has netted $1.8 million
more than expected, with 10000
to $4,000 returns still uncounted.
Commissioner Robert E. Nc
Laughlin said the unexpected
extra tax revenue will ease the
city's immediate financial pinch.
1t has already caused the city
heads to drop plans to ask Con-
gress for part of the IS million
IN back Federal payment money
which Congress has authorized
but never appropriated.
1t had been planned to draw
on this source-Congress willing
in order to finance a proposed
new welfare expansion, among
other projects, but some Of the
new tax money now can be used
for this. instead. Mr.. Mclaughlin
said.
New Spending Ahead
But officials noted that the
city is facing other new spend
ing demands. including the giant
new public works program now
being drafted. Thus any extra
tax funds that might pile UP
temporarily can soon be put to
use, they said.
The probable size of the tax
windfall was limited yesterday
from two sources. Assessor Ken
meth Back disclosed that, up to
noon yesterday. the city already
had counted up $12,836,737 from
some 10000 taxpayers. This
compared with an official predic-
ton of a total income tax yield
of only Sill million.
Mr.. Back and Schuyler Lowe,
general administration director,
said they expect to have addi-
tional figures to make public to-
morrow.
In addition, William N. Nc
Leod. clerk Of the House District
Committee. predicted that the
total yield will equal or exceed
an estimate made last year by q
group Of congressional tax ex-
Iperts. That estimate, made by
the staff of the Joint Committee
on Internal Revenue Taxation
was $l4.4 million.
Mcleod Keeps Touch
City officials said yesterday
that Mr.. Mcleod had been in
touch with them on the subject.
and while they declined to COM
ment on his estimate. it was in
dicated that he might be speak
ing with some authority.
Last year city tax officers and
congressional aides we're in dis
agreement about the probable
tax yield. City officials at first
predicted it at only $9.6 million.
Later, they revised this to the
Sill million which is still the
official basis of next fiscal years
budget estimates. now pending
in Congress. But they declined
to accept the still higher figure
or the congressional group.
Officials conceded yesterday
that they were wide of the mark.
But they explained they had no
experience to go on. because the
new tax introduced withholding
and also dropped the basic in
dividual exemption from $4,000
to $1,000, thus bringing in thou
sands of brand-new taxpayers.
Besides the income tax
changes. the stiff new law en-
acted by Congress last year also
increased the city's real estate.
sales and wine and liquor levies.
But Mr.. Back said the yield from
these increases, as far as he
knows. is not exceeding expecta-
tons.
To Re-examine 1858
Mr.. Lowe said the new report
on income tax receipts tomor-
row will not be final. He also
said 1t is not planned to make
any new estimate Of total re-
ceipts for the year until some
time next. week.
In addition to revising this
years estimate. officials now face
the task Of re-examining 1858
tax prospects. A higher yield
was forecast for next year, but
even this is now being overtaken
by the current years returns.
The District originally forecast
the 1858 income tax yield at a
maximum Of $l1.5 million, later
raising it to $13 million. That
figure is almost certain to be
exceeded by tomorrow.
The Joint revenue committee
STAFF predicted the 1868 yield
would be $l8.667 900. 1T based
its estimates on the city's 1852
Federal individual income tax
returns.