Evening star. [volume] (Washington, D.C.) 1854-1972, 1958-08-03
PayRise toNet US.
$18 Million WindfaII
D. c. Due Only
$l,S75.0OO of
New Revenue
ny HARRIET GRIFFITHs
star star Writer

- -
The Districts iss,600 Cow,
eminent workers win hand the
Federal Treasury about sic
million Of their pay raise in In
come taxes over the first years
period. :
But the city government can
expect only si.e75.0 900 from the !
approximately 500 million In
new money. including the :
retroactive raise.
With the estimated increase
In sales and the tax revenue.
the city will get a total s2.6
million In added income.
The Federal Government
stands TO gain some additional
revenue by way of excise taxes.
too. depending on how much
Of their raise the workers spend
on travel and other "luxuries."
District budgetmakers already
have clutched at the potential
S2.6 million in trying TO figure
out how the city will meet its
expenses over the coming year,
including the cost of pay raises
to city employees.
Tight Squeeze Seen
Commissioner Robert E. Me-
Laughlin has said the city will
barely make ends meet II Con-
gress doesn't grant any more
pay boosts than the Com
missioners have judged the city
can afford.
And that takes into account
the whole $50 million which
Congress has authorized as
the annual Federal payment
toward the cost of operating
the capital city.
Reluctant lawmakers have
trimmed this to a $40 million
appropriation in the District
budget bill sent to the White
House for the current fiscal
year.
Presumably, the city will have
to go back and plead for the
additional Sl2 million later.
Mr.. Mclaughlin said on a
recent radio broadcast he sup
posed there would be quite
a struggle" about it.
Maryland and Virginia will
realize some of the added taxes
to be paid by Federal and
District employees who work in
Washington but live in the
nearby States.
OF the 10000 Federal en-
ployes working in Washington,
an estimated 10000 live outside
4 the District. Some Pentagons
employees, on the other hand,
live in the District.
An estimated 5000 Of the
District governments 23,600
employees live outside the city
Federal Government income
tax anticipated from the pay
raises is estimated by applying
an Is per cent withholding
rate after allowance for ex-
emptions to the total amount
Of the pay raise, including
retroactive pay.
One-FOurth Written on
Before the pay raise, the
Federal and District payroll
for the District was estimated
at 1858 million a year. A 10
per cent increase would add
1868 million to that figure over
a years period. The retroactive
raise amounts to another half
years increase. about 1894 mil
lion. for a total of 500 million.
The city calculated its in.
crease in income tax expecta.
ton by knocking of fourth
Of the increase to allow for
non-taxable returns. Then it
applied a tax of 21a per cent
to get a figure of $780, 900
in income taxes due over a
years period, plus 1925, 600 on
the retroactive pay.
City finance officers esti-
mated the / per cent grocery
sales tax and the 2 per cent,
levy on other goods amounts
to about IS million on the
groups affected by the pay
raise. BY increasing the figure
10 per cent, or 100000, and
adding half again the increase
to allow for retroactive pay,
et,.., ,o..I.1I AHEn nm =. a.