Evening star. [volume] (Washington, D.C.) 1854-1972, 1958-04-19
Merchants AssaiI
Arlington Tax Rise
500 Turn Out
At Hearing
On Proposal

ABOUT 40 speakers urged the
board either 10 hold the line
on the levy or abolish IL.
Two residents took an oppo-
site view and backed an in
crease In the tax as a necessary
move 10 meet county expenses.
The county board has adver-
tised for a Jump TO 81 per 500
on gross receipts.
However. Board Member
David L. Krupsaw. who made
the proposal, said at the out
set that the 81 figure was merely
a talking point and that some
categories might even be re-
duced. The present levies
range from 7 cents per 500
in some wholesale categories
TO SIS cents for professional
people.
600 Attend Hearing
Last night more than 900
persons, mainly businessmen.
turned out for a hearing on the
matter at Stratford Junior
High School.
Alfred E. Grove. representing
the Chamber of Commerce.
labeled the business privilege
tax unjust and inequitable."
He said:
mo tax based on gross re-
ceipts can be otherwise when
you consider that the tax is
imposed on gross dollar volume
without regard to the profit or
loss type of business"
In urging the board not to
raise the tax. Mr.. Grove said
there are now 1903 vacant stores
and 1877 vacant Offices in Ar
lington. If business and pro-
teSSional men are burdened
with discriminatory taxes. they
will either have to curtail their
operations or move out Of Ar
lington. he said.
Indirect Sales Tax
The proposed increase, Mr..
Grove went on, is intended TO
be passed on to the consumer
as an indirect sales tax. The
saddling of a hidden tax Of
this type on the consumer is
the refuge Of those who want
to increase the taxpayers load
but wish to escape the respon-
sibility for their acts" he told
the board.
Mr.. Grove added that any
increase in the tax would mean
that businessmen will "shun
this community" This revenue
lost, he said. will mean higher
real estate taxes.
Speakers told the board that
their margin of profit is too
small to absorb an increase.
On the other hand. they said.
if they tried to raise prices
they could not compete with
businessmen in neighboring
communities.
Beating a Dead Cat"
At about the midpoint in the
hearing, Mr.. Krupsaw said:
I'VE have spent one and a half
hours beating on a deadecat."
Mr.. KrupSaw told his audi
ence that from the time he
was foolish enough to run for
ofhce," he has repeatedly criti-
cized the business privilege
tax as crude and inequitable
and lousy"
The board member said that
Arlington'S tax system could
be corrected, but we have had
no, constructive advice from
the business community"
Mr.. Krupsaw went on to say
that he had proposed the tax
increase with the idea that it
would be passed on to the con-
sumner as an indirect sales tax.
However, Mr.. KrupSaw ex-
planned, he had told a group of
business leaders that he would
support a raise 10 81 only If
the increase could function as
an indirect sales tax and II
neighboring communities en-
acted similar levies.
2 Back 16Ps Rise
Two residents. Robert E.
Reynolds and Harvey L. Lamp
shire. supported a proposal by
the County Boards Fiscal
Affairs Advisory Committee for
a jump of about Is per cent in
the business taxes.
Mr.. Reynolds noted that the
levy for retail merchants would
go from 10 cents per $100 to 81
cents. This. he said. is actually
a raise of only three one
hundredths Of one per cent on
each 500 and will not break
the businessmen or cause them
to leave the county.
The county board is looking
for about $1.2 million more in
revenue from local sources for
the forthcoming fiscal year.
The board has until May IS
to adopt a budget and set the