Evening star. [volume] (Washington, D.C.) 1854-1972, 1910-04-23
House Committee Reports in
Favor of Imposing Levy.
NECESSITY IS DEFINED
Equalization of Burdens and to De-
stroy Asylum for Wealthy.
CASH NEEDED TO REDUCE DEBT
Unfair to States Which Will Permit
Wealthy to Make Residence Here
for Testamentary Purposes.

TOT Testamentary purposes.
I'm view of the fact that practically all
the states have Inheritance tax laws,
such a law is needed in the District.
Otherwise the National Capital will con-
stitute an asylum for men Of wealth to
establish residence in for testamentary
purposes. This is very unfair to the
states"
So declares the report Of the House
committee on the District OF Columbia,
written by Representative Pearre Of
Maryland, on the bill Oh. r. 22s42) to tax
inheritances in the District Of Columbia
This tax is needed, also. to equalize
the burden Of taxation in the District"
the report continues. "At present in
tangible personal property is not taxed.
The man Of small means. with household
furniture and COW or horse, is taxed
on all he has, but the man who owns
stocks. bonds. mortgages, royalties and
the like pays no tax thereon.
"An Inheritance tax is the only tax
such property will ever pay. So if this
tax is not needed to provide more rev.
enue. it is needed properly to distribute
the burden Of taxation.
Necessity Is Defined.
1.-The report of the Commissioners Of
the District. eherinafter contained, states
that such a tax is correct in principle, but
should not be applied save when there is
necessity to impose 1t, and that such ne
cessity does not now exist. We believe
the necessity Is found in the need Of elm
mating the District as a tax dodger'
asylum and in the need of better distrib-
uting the burden Of taxation.
Furthermore, the report shows that the
bonded Indebtedness of the District Is
10, ia, 100, an amount exceeded by only
four states of the Union. 1t would seem
not undesirable to secure greater revenue
that this Indebtedness might be paid"
The report, covering fourteen printed
pages, contains an exhaustive review OF
the inheritance tax laws of the states,
and says in conclusion:
tance tax for the District OF Columbia.
There is a general exemption OF 5000 to
all classes of persons. Where immediate
members of family are involved the ex-
ut is proposed that estates valued be-
tween s., 600 and $4,000 shall pay tax
of ~ per cent, those valued more than
$4,000 shall pay per cent. Further
for charitable, religious. educational, sci
entfic. hospital, missionary. literary. pa
triotic, historical Or cemetery purposes
Is entirely exempt.
Practice of Nations and States.
''It is believed than an inheritance tax
law should be enacted for the District
Of Columbia. This form of taxation has
been adopted in recent years by the
leading countries of the world and by
nearly all the states of the Union
This system of taxation has become
fixed in the United States. and doubt
less will soon obtain in every state. At
present all save the following states have
such a tax: Rhode Island, Indiana, Kan
sas, Nevada. Mississippi. Florida, Ala
bama, Georgia and South Carolina
THE principal features of this bill are:
% The exemptions; CD, graduation of
the tax; 81. different rate as between
near and remote kindred.
"In England estates valued less than
$500 are exempt; in France, no exemp-
tons save aims; in Germany. estates Of
no greater value than $125 are exempt.
1.-The laws of the states of the Union
vary greatly as to exemptions. A dis
tinction is usually made between direct
and collateral heirs. Many states have
most of them exempt a small amount.
1.-THE following states have general
exemption of $500: California, Colorado.
Delaware. Idaho, Illinois, Kentucky,
Maine. Maryland, Montana, New Jersey,
New York and Wyoming
''In nearly all states there is greater
exemption in property going to direct
heirs or immediate members OF the fam
lily than to collateral heirs or strangers.
These exemptions usually run from $1,000
to $4,000.
Justification for Exemptions.
The proposed bill Is liberal in the ex
emptions in respect to property devised
for religious, educational. scientific and
like purposes, for the reason that the Dis
trict Is naturally situated and destined to
become a great center for institutions
carrying OF this work. It is believed that
such institutions should be fostered.
I'm England, France, Germany and
many states OF the Union the tax varies
according to the size Of the estate. The
graduation of the tax is generally recon-
mended where there are no constitutional
obstacles in the way. To graduate the
tax enables a relatively small rate to be
applied to small estates.
1.-THE PA per cent on estates between
So 600 and $4,000 in the proposed bill is
a very moderate tax compared with the
rates in the various states. and the 5
per cent on all estates over $4,000 Is
about the average rate applied.
Congress has ample power to enact
such a law. Congress shall have power:
ITO exercise exclusive legislation in
all cases whatsoever over such District
(not exceeding ten miles square) as may,
by cession Of particular states and the &C
ceptance of Congress, become the the seat
of the government of the United States.
Constitution, Art ], g. c. 81
I'm considering table in the report.
one should bear in mind that the District
tax is compared with state taxes and
while resident of the District pays only
this District tax, in the several states a
citizen must pay not only the state tax,
but also a county, city and school tax,
and of the total amount the state tax Is
but fraction
GIVEN UP THIS YEAR.