Evening star. [volume] (Washington, D.C.) 1854-1972, 1910-12-12
TAX ON LEGAC|ES
Inheritance Above $1,000
Covered by District Bill.
BEFORE THE HOUSE TODAY
Chairman Smith of District Commit
tee Argues for Enactment.
MEASURE OPPOSED BY OTHERS
Contention That It Would Entail
Additional Burden-other Leg
islation Considered.

Contrary to expectations. Chairman
Smith Of the House District committee
let the loan shark and teachers retire
ment bill slide at the beginning of Dis
trict day this morning, and called up the
bill introduced by Representative Miller
of Minnesota, providing for the imposi-
ton of an inheritance tax on all legacies
OF more than $1,000 In the District. Con-
siderable opposition to various phases Of
the bill was expressed.
Representative Borland Of Missouri in
sisted that the operation Of the collection
Of this tax would result In placing an
additional burden upon the people of the
United States at large as well as on the
people of the District That is. whatever
addition to the revenues Of the District
resulted from the tax would haze to be
met, under the present law Of co-partner-
ship between the federal government and
the District, by the appropriation Of q
similar amount from the Treasury Of the
general government
Inheritance Tax Measure.
The first bill called up was the inherit
ance tax measure introduced by Repre-
sentative Miller of Minnesota and favor
ably reported by the District committee,
despite the protests Of the Commissioners.
MIR. Miller. in explaining his bill today.
said that it proposed to institute in the
District of Columbia a system of taxation
equitable in most OF the states of the
Union. The Commissioners Of the Dis
trict OF Columbia, however, while ex-
pressing the opinion that an equitable
and graduated Inheritance tax constitu-
tionally applied is correct in principle
nevertheless doubt the necessity Of impos
ing 1t at this time.
This bill provides graduated inherit
ance tax for the District Of Columbia
There is general exemption of 5000 to
members of family are involved the
exemption is $4,000. It Is proposed that
estates valued between $4,000 and $4,000
shall pay a tax of 2h per cent, those
valued more than $4,000 shall pay per
devised purely for charitable. religious,
educational, scientific, hospital, mission
ary. literary. patriotic, historical or ceLn-
etery purposes is entirely exempt.
Argues for Enactment.
1T is believed that the inheritance tax
law should be enacted for the District
at this time.
The proposed bill is very liberal in the
exemptions in respect to property devised
for religious. educational. scientific and
like purposes, for the reason that the
District is naturally situated and destined
to become q great center for institutions
carrying on this work. It Is believed
that such institutions should be fostered.
In England, France. Germany and
many OF the states Of the Union the tax
varies according to the size Of the estate
The graduation Of the tax is generally
recommended where there are no consti-
tutional obstacles in the way. To grad
uate the tax enables a relatively small
rate to be applied to small estates. The
2A per cent on estates between 5000 and
$4,000 In the proposed bill is a very mod
crate tax compared with the rates in the
various states. and the 5 per cent on all
estates over $J0OOO Is about the average
rate applied.
I'm view Of the fact that practically
all the states have Inheritance tax laws.
such law Is needed in the District.
Otherwise the National Capital will con-
stitute an asylum for men Of wealth to
establish a residence in for testamentary
purposes. This is very unfair to the
states.
EquaIzes Tax Burden.
This tax is needed also to equalize
the burden of taxation in the District.
AT present intangible personal property
Is not taxed. The man of small means,
with household furniture and a COW or a
horse, is taxed on all he has, but the
man who owns stock, bonds. mortgages,
royalties and the like pays no tax there
on. An inheritance tax is the only tax
such property will ever pay. So, if this
tax is not needed to provide more reve-
nue., it is needed properly to distribute
the burden Of taxation.
The report of the Commissioners OF
the District states that such a tax is
correct in principle, but should not be
applied save when there Is necessitv to
impose it. and that such necessity does
not now exist. We believe the necessity
! is found in the need Of eliminating the
District as tax dodgers asylum and in
| the need of better distributing the bur-
den of taxation.
Furthermore. the report shows that
| the bonded Indebtedness Of the District
is s1O,11i,1JO, an amount exceeded BY
! only four states Of the Union.
! 1T would seem not undesirable to Sc
! cure greater revenue that this indebted
ness might be paid.
| I'm considering table G. in the report
| one should bear in mind that the Dis
trict tax is compared with state taxes
! and while resident of the District pays
only this District tax, in the several
| states 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
! Many members of the House, notably
Representative Longworth of Ohio and
Mann of Illinois. asked questions about
the bill.