Evening star. [volume] (Washington, D.C.) 1854-1972, 1890-11-08
PROPOSED TAX REFORMS.


PROPOSED TAX REFORMS.
Changes Which the Assessor VIII Rec
ommend In His Report.
THE PERSONAL TAX AND COMPLAINTS AGAINST
ia PERMANENT BOARD OF ASSESSORS REC
oMMENDED-THE oNE-PAYMrNr TAX sYsrEM-
CITY BANKS As DISTRICT pEPosIroRIEA
The annual report Of Assessor Trimbls, which
will be submitted to the Commissioners at an
early day, will contain some important recon-
mendations and suggestions. A STAR reporter
found the assessor busily engaged upon HE re-
port when he entered that officials Office this
morning. Mr.. Trimble greeted The SrARs' rep
resentative pleasantly and said:
Il guess you want to know how my report Is
coming along. Well, I am vading through it
IS fast as possible and hope to get it before the
Commissioners the coming week. Recommsn-
dations? Yes, there will be several important
ones. Now there's the personal tax. am
going to spend some time discussing that i'm.
portant question. Now. every one knows that
since the passage of this law it has been a
source of great embarrassment on account of
the apparent impracticability of its equita-
be enforcement. So long as individuals
and corporations fail to make re-
schedules annually furnished them, it has been
found to be utterly impossible with the limited
force of this Office for the assessor to resort to
the ultImatum provided for in the law for max
ing the assessment / have just been examin-
ing the books kept for the recording OF those
who pay their annual personal tax, and find
that the numbers have been perceptibly dimin-
ishing and the amount OF taxable personal
property correspondingly decreasing. For in
stance. in 1878 the aggregate Of the returns IN
der this head was Ell, 239 O51. and for the year
ending June go 1890, the amount was only
Sl1. O23, 167. The returns for the current year,
however, find have slightly increased"
what do you attribute this tot" asked the
| reporter.
ut cannot be true that our citizens generally
are getting poorer or less prosperous in bust
ness. neverthelessn view of what have just
said. it might be claimed that the public con-
science is becoming somewhat elastic on the
subject of taxation"
How many people in the District pay per-
sonal tax?'
my books show" said the assessor referring
to a large ledger marked personal Property"
LESS than 5000 people owning personal prop
erty over and above the legal exemptions. If
adequate provision 10 not made for the strict
enforcement OF the assessment and its collec-
| ton there is no reasonable likelihood Of this
number or amount being materially increased"
do you receive many complaints from those
who pay the tax?"
Indeed we do and can but say that their
complaints are well founded. 1t seems unjust
that they should pay tax that others not
compelled to do. Many people take occasion
to make their wealth invisible by temporary
investment in exempted stocks or bonds or buy
themselves In debt upon margin to avoid this
tax. am well satisfied" continued MIR. Trim
BILE, ''that our citizens generally are willing TO
pay all Just and reasonable demands. The per-
sonal tax law is considered an obnoxious one
and is severely criticised in far it attempts
10 20 yDyrbl 10 Inen of
vate business and to this extent the objection
is fair and reasonable and the arguments
against its further continuance in enforcement
are worthy Of most careful and favorable con-
sideration.
Il shall recommend that the attorney pre-
pare BILL for presentation to Congress at its
approaching session, which will be at least
more definite and specific in its provisions than
the present law. This proposed law should
provide for an assessment, based on some WELL
defined valuation, to be placed on the property.
Instead of requiring the assessment to be made
by temporary force within q limited number
OF days permanent board should be estab
llshed and such fair salaries provided for each
member, say q, apiece annually, as will Sc
cure the services OF men best qualified for
these responsible duties"
THE TAXATION OF CORPORATIONS.
''There is another question which, next to
the personal tax question, is quite important.
your views regarding this?"
1.-The law on the subject makes no provision
any particular standard of valuation nor
what basis OF calculation the assessor shall
adopt in arriving at the value Of the capital
stock. 1t is very desirable that some uniform
rule should be adopted, and one which will ap-
ply TO all corporations alike and which
of proportion to the Weather and more
prosperous ones. A taxation ON the basis of
gross receipts appears to be the most equitable
plan and the law should be so amended as to
tax all corporations. whether home or foreign,
a &C rtain percentage ON gross receipts derived
from business done in the District. These are
corporations doing business here" explained
the assessor, land who claim exemption from
taxation on the ground Of holding their articles
of incorporation from one OF the states and
paying tax in said states. This tax in most
cases is very small, and in fact nominal one,
but sufficient to avoid the tax levied on our
home companies. II il is deemed necessary to
continue Ia discrimination between home
and foreign companies doing business in this
District favor policy most favorable TO our
home Institutions"
THE oNE-PAYMHNr SYSTEM.
"There is just one thing more that strikes
me as needing reform and that is the method
of paying taxes 1 propose to urge in my an
nual report the payment of taxes in one annual
payment In lieu OF TWO lnstallmentS. This
change would, l think, result not only in saw
ing an immense amount of labor, but would
also obviate the present plan Of taking money
from the people and locking itup in the United
States Treasury for several months every year.
For example. the first installment of taxes is
now due and payable November /,
and assuming that one half of the
| annual tax is paid during that month,
| We find that about one and one quarter million
of dollars is covered into the United States
Treasury to remain there idle and Improbable
until Congress unlocks the door and allo VS. this
| money to again pass out in circulation from
and after the 1st of July following. If.the tax
was made payable in one installment," contin-
| ued Mr.. Trimble, getting interested, land
| in the month Of May, the principal part
of the money would be collected during
| that and the succeeding month OF June
| and would then be Immediately available
| for recirculation under the appropriation
act of Congress for that year. II deemed
necessary the payments could be expedited by
allowing q small discount for prompt pay
| ment and if delayed small penalty
| nigh the added ! would avoid the un-
| usual pressure necessarily attending tn Q
| withdrawal of SO much money from circulation
| by making our banks the custodians of the Dis
trict funds instead Of locking it up in the
vaults of the United States Treasury. This
| change from the present system, / think, would
| be favorably received, as it would keep the
| money in constant use and circulation. II
would also materially simplify the accounts in