Evening star., 1960-06-24
BUDGET
DC. Heads Tell Why
New Funds Are Vital

cal year beginning July l, and
then $12 million annually. Mr..
Mclaughlin said. Mr.. McMil->
lan's sales tax bill would bring
in an extra $6.3 million in the
next fiscal year and then SO
million annually.
Speaking in opposition to a
sales tax increase, Mr.. Nc
Laughlin noted that Virginia
now levies no sales tax. A fur
ther advance in the city'S sales
tax rate may. in our opinion,
cause additional deterioration
in the competitive position of
business" in the city, he said.
Sees Unfair Burden
In addition, Mr.. Mclaughlin
also opposed the increase on the
grounds that it would increase
the tax burden on the lower
income groups disproportion-
ately.
Support for the Commission
ers' position came from other
witnesses, including William H.
Press, representing the Wash
ington Board of Trade.
I'VE believe very strongly
that the sales tax rate in the
District should not be raised
until there is a sales tax south
of the Potomac" Mr.. Press said.
The Board of Trade, Mr.. Press
said, supports the Commission
erS' tax program.
E. A. Pritchard, executive
vice president of the Merchants
and Manufacturers Association,
said this group believes IAN in
crease in our sales tax at this
time would be manifestly un-
sound and highly undesirable"
Warning Issued
A representative Of the Dem
ocratic Central Committee.
Arnold Sternberg, also backed
the tax package and declared
that:
Sales taxes are essentially
a regressive tax measure i'm
posing an inequitable tax bur-
den on those members of the
community least able to carry
its burden"
An official of the District
Congress of Parents and Teach
ers Association, Mrs. Gordon
Van Sanford. said the aSSocia-
tion favors higher taxes "only
if we can see it reflected in our
schools" She added that before
taxes are raised, Congress
should come through with the
full authorized Federal pay
ment.
Mrs. Benjamin Schiller, of
the League of Women Voters,
labeled the sales levey as a
"regressiye tax" and indorsed
the Commissioners tax revenue
program.
Mcmillan Seen Firm
Mr.. Mcmillan. Democrat of
South Carolina. appeared un-
impressed, however, with these
statements. Comments by other
committee members indicated
that Mr.. McMillan's view points
had majority support.
At several points in the
hearing, Mr.. Mcmillan COM
mented that thousands, and
thousands" of District residents
pay only the sales tax. And
at the same time, he said, they
are enjoying municipal facili-
ties, with some having mine
children in school,"
A different approach, how
ever, was expressed by Repre-
sentative Wier, Democrat of
Minnesota. He said that the
answer to the city's financial
problems is for the Federal
Government to assume its
financial responsibility by hav-
ing Congress grant Federal
funds to compensate for the
tax loss from Government
buildings.
One reason for his sales tax
stand, Mr.. Mcmillan said, is
this:
His committee assured city
residents when the sales tax
was adopted that the personal
income tax exemption never
would be dropped below 81, 1000.
Congress has not honored this
commitment, and he has no
intention of indorSing a still
heavier personal income levy.
The House yesterday passed.
with two amendments, the Ap-
preparations Committee bill de-
nying a city-requested 81
million Federal payment to
finance about $40 million worth
of proposed public works prof.
ects.
House Blocks Study
The House killed a $47,700
item earmarked for the city's
contribution to costs of the Ma
tional Capital Downtown Com
mittee's study on ways to re-
vitalize the business area, and
for the District Civil War Gen.
tennial Commission. The money
was knocked out on a point of
order by Representative Gross,
Republican Of Iowa, that there
had been no legislative author
ization for the projects.
The HouSe-passed bill ap-
propriates $545,000 for debt
service and about $685., 900 for
operating expense items. The
Appropriations Committee had
cut the city's requested operat-
ing expense total of $4,000.
The House yesterday also
knocked out language in the
supplemental bill stating that
the city could construct its pro-
posed public works projects
provided it can find the rev.
enue. This means that the
Commissioners will have to ask