Evening star., 1961-08-25
Senate Passes
S18.6 Million
DC. Tax Bill
Measure Provides
SIS Million Grant
To Aid Schools
BY GRACE BASSETT
Star Staff Writer

The Senate today passed the
Districts tax bill, adding SIS
million in Federal funds for
"impacted" schools in the Dis
trict to the city's revenue bill.
Also added to the SLAB mil
lion tax program, as reported
by the District Committee. were
two tax increases to yield $3.8
million. Suggested by Senator
Morse, Democrat of Oregon,
they would impose a S2-per-
gallon tax on liquor and an
increase from 2 cents to 5 cents
per pack in the tax on cigar
cites.
District Committee Chairman
Bible accepted the surprise
Morse amendment to include
the District in the impacted
school-aid program, as we'll as
his liquor and cigarette tax
additions.
Rejected by Senator Bible
and voted down on the floor
were other suggestions from
Senator Morse to impose a 10
per cent tax on parking lot
receipts and on rentals of
commercial business property
by non-residents.
Boosts Sales Levy
The Morse package of taxes
was aimed primarily at the
sales taX-"regressive and dis
graceful according to Senator
Morse. He was voted down in
attempts to remove the COM
mittee's recommendation for
2 to 3 per cent sales tax in
crease from the bill and to
repeal the current / per cent
sales tax on groceries.
Senator Morse was enthusi-
astically supported in the floor
debate by Senator Proxmire,
Democrat of Wisconsin. Sena-
tor JavitS. Republican of New
York, was with him on the re-
peal of the grocery sales tax.
but voted against deletion of
the broader. general sales tax
IN the committee bill.
The Senate bill now goes to
conference. The House earlier
cleared a SO million sales tax
measure. The Senate bill totals
$l8.6 million in estimated rev.
enue. with the Morse amend
mentS.
The IS million in new Fed
eral money is for schools over
crowded by children whose
parents live or work on Federal
property.
School Need Stressed
Certainly if there is one
impacted area in the United
States. it is the District of
Columbia" Senator Morse told
the Senate. He estimated that
one-third of all employed per-
sons in the city work for Uncle
Sam"
Equity cries out for inclu-
sion of the District in the i'm
pacted program" the Senator
added. He said the Health, Ed
ucation and Welfare Depart
ment had given him a memo
randum ruling that the regular
Federal payment to the District
need not be decreased by the
amount of impacted school aid.
This "impacted" program in
the States is justified on the
grounds that the Federal Gov
ernment must make up to To-
calities the tax money lost on
properties acquired and occu-
pied in those areas by the tax
exempt Federal Government.
Senator Morse stressed that
his principal objection to the
tax bill as reported by the
Bible committee was the in
creased sales tax.
The truth is that this tax
is felt most heavily by low
income families" he said.
They tend to be less articulate
than higher-income families,
who would complain about more
equitable taxes"
Senators Morse and Proxmire
said the Senate ought to be
proposing increased income
taxes. They both said sales
tax on necessities levied against
people unable to pay was
Shocking on moral grounds"
AS for his liquor and