Evening star. [volume] (Washington, D.C.) 1854-1972, 1902-01-10
PERSONAL / 1Ax LAW.
Long Record Of Recommendations
for Its Repeal.
A QUARfER-CEHGURYs oF PROTESTS
Commissioners and Assessors Have
Repeatedly Shown Its injustice.
DECLARED INEFFECTIVE

| l.
From the beginning Of the present form
| of District government the official opinion
at the municipal buildings has been ad-
verse to the personal tax law on the local
statute books, and to its methods Of en-
forcing. The reports of the Commissioners
| and subordnates for almost every year up
| to the present time contain references to
| the advisability of either radical amend
ment or a positive repeal Of the law. A
summary Of the recommendations thus
made in the course Of the annual reports,
particularly at this time when the question
| Of the local taxation and especially the ad-
| visibility Of enacting a new personal tax
| law to replace that recently annulled by a
decision Of the court, is under considera-
| ton, is of immediate interest.
| In 1875 the board of assessors reported as
| follows: "The provisions of the law Dust
enacted) in regard to the taxation of per-
sonal property developed many expressions
| Of opinion as to the policy Of levying such q
! tax in the District of Columbia for it's sup
| port. The law was evidently designed to
| make a certain class Of property contribute
Its portion toward the expenses Of the Dis
| trict; but 1t is equally apparent that this
object would have been defeated to great
| extent by the conversion of taxable prop
| erty into property non-taxable under the
| law Just prior to the day fixed for it's as
/ sessment and it's re-conversion when that
! day had passed, thereby leaving those who
| held nom convertible commodities to bear
| the burden of the tax. The board had the
| satisfaction of an explanation from num-
| Der of citizens from other sections of the
! country as to how personal tax laws were
| executed in their respective states and
| cities.
IF the statements Of these gentlemen are
| correct, and the board has evidence
| to the contrary, 1t Is painful to contem-
| plate, and greatly to the discredit Of the
whole country, that any population should
be invited, tempted and forced to permit
the amount of perjury that Is evidently
| committed under all systems of law pro-
viding for the taxation of personal prop
erty and having the inquisitoria1 features
Of the act passed at the last session of
Congress. After considering all the adj
vantages and disadvantages Of the taxa
ton of personal property the members of
the board are compelled to say that such
tax would operate very detrmentally in
this District. The District of Columbia not
being a commercial or manufacturing place,
depending entirely upon the disbursements
of the general government and outside
capital for its prosperity, the accumulated
wealth supposed to be taxable does not
exist
Washington a Residence City.
at was truthfuly stated in one Of the
debates at the last session of Congress,
when the percentum to be levied for tax
alton for the fiscal year ending June 80,
1876, was under consideration that the city
depended entirely upon the government and
upon inviting outside capital, not for specu-
lation, but for the temporary abode of
citizens of the states of wealth, culture
and education, and making Washington
(the capital of the nation) a cheap and at
tractive resort 1t is not difficult to con-
clude that all such citizens of the states
,t>1 I,,1rr l,1f~ L1,-s
home in Washington, If followed closely
with personal tax would accommodate
themselves with a very temporary resi-
dence in this city, il they came here at
ALL After fully considering the whole SUBJ
ject the board recommends, in lieu Of
personal tax, system of licenses for all
permanent business pursuits, similar to that
provided for by existing laws"
In their report the Commissioners re-
ferred to the difficulties and recommended
| tons of the assessors relating to the per-
sonal tax and invited the attention Of Con-
gress to the proposition to substitute a Ii
cenSe tax for the tax personal prop
erty. They did not indorse the recommen-
dalton.
In 1877 the assessors included in ther
report a recommendation that the rate Of
the personal tax be reduced from one and
one-half to one per cent, no action having
been meanwhile taken to modify the tax
law itself. They expressed the belief that
as the result Of such a reduction much
fuller returns would be made under the
law, they would be yielded more cheer
fully by the people and there would be no
loss Of income, but perhaps a gain. The
Commissioners made no recommendation.
In 1873 the assessors reviewed the recon-
mendation for the substitution of an an
nual license law in place of the tax on
goods and merchandise held for sale, say
ing: 1T will do away with the most I'M
popular feature OF our personal tax law,
which requires the merchant to make an
annual exhibit of his business affairs, Of
ten to his great detriment."
Again In 1879 the treasurer and assessor,
who had succeeded the board Of assessors
under a new law, said: Taxpayers whose
personal property is invisible fail to COM
municate with the assessor, either from
love of gain or to avoid publicity Of their
affairs The arbitrary assessments which
cucumber our tax books are a sad COM
mentary upon the inetficiency of our per-
sonal tax law
A License Tax Proposed.
In the report for 1880 the assessor notes
that the Commissioners had made vigor-
GUS effort to collect the personal tax by
sending out notices and bills and much
larger amount of the taxes was collected
than was anticipated. He says: 1T Is
urged that the tendency of the present law
is to drive capital out of the District. The
people are anxious to be allowed to substf-
tute complete system OF licenses Tor the
personal tax, leaving nothing taxable but
real estate and household chattels. l agree
with them that more money may be real
lied by a general license law than under
the present law and more equitably and
satisfactorily
In 1881 the Commissioners themselves
! took up the question Of the unsatisfac Glory
| condition of the personal tax law, saying:
| ut Is hoped that some more satisfactory
| method Of taxation on personal property
| than that now in use may be devised. I hat
| the personal tax law now in force has not
| been successful as a revenue measure ex-
| perience has clearly demonstrated. This
| tendency is to discourage business and
| honest returns Of personal property tor
| taxation; to enhance the local rates IT IN
| terest on money; to encourage the invest
| ment of local or resident capital in nom
taxable securities, and to. give the control
and profits Of the local money market to
nonresident capitalists "A. law which thus
discriminates against resident citizens and
tends to repel the better class whom it
, should be our policy to attract to thu capi-
! tai cannot be either wise or just
| The assessors report for 1882 says Of the
personal tax: This tax seems to be OBJ