Evening star., 1914-07-09
PROUTY |NANEW
ASSAULT OND.C.
Makes Report on Commission
Bill Opportunity for His
Attack.
HAVEN FOR TAX DODGERS,
CHARGE AGAINST CAPITAL
Alleges That Other Cities Are Un-
justly Taxed for Benefit
of Washington.

Va w AoA1&A6 oohs
Representative Prouty of Iowa repub-
lican member of the District committee
of the House, has made another attack
upon the taxation system of the District
of Columbia. using for his opportunity
the fact that he was assigned to write a
favorable report on the District commit
tee resolution to establish commission
to make an impartial investigation of the
fiscal problems between the United States
and the District of Columbia.
The resolution which was ordered re-
ported from the District committee would
direct the commission to find out whether
the taxation system is an equitable one;
whether the present form of government
is fair to both the District and the
United States. etc. In writing the re-
port. Representative Prouty reiterates his
idea that Washington is a tax lodging
community. where a person with weak
eyes would be blinded by the flashing of
untaxed gems: and in the body of the re-
port he makes the statement that the
system which the commission Is asked to
report on lis indefensible.''
Post Estate Is Cited.
In further reporting on the commission
to investigate the Districts problems Mr.
Prouty comments on the estate of the
late C. w. Post, who had a residence
here:
He had little house here valued at
about 5000. in which he kept stored a
few household goods carried on the tax
rolls of the District at Loo. BY reason
n t,aiy ctrr he tl<<j
to exemption for household goods in
actual use, and therefore paid taxes of
SIS per year in the District of Columbia.
1t Is creditably stated that he never
occupied the house as a residence. but
that when he came to Washington either
by himself or with his family he oc-
cupied suite of rooms in the New
Willard Hotel. The inventory Of his es-
tate recently filed in this District shows
that he had $1S.OO0.OO0 in stocks, bonds
set Indebtedness of less than $4,000.
The people of Michigan sought to as.
sess his moneys and credits, but were
defeated because of his technical resi-
dence in the District of Columbia.
There is no inheritance tax in thu
District of Columbia, and for this reason
men of large estates naturally declare
Washington as their technical place o,
residence for the very purpose Of avoid
ing the local taxation"
Says Burden Is Shifted.
Representative Prouty's report claims
that Washington is bearing a lighter bur-
den of taxes by reason of other COM
munities shouldering what is really the
tax of the District. In further reporting
on the commission which is to render an
impartial verdict Representative Prouty
in his report states:
1T is claimed by those who have given
the matter consideration that as a re-
suit of the system by which the fed
eral government pays one-half of the
expenses of the municipality the local
property owner pays about one-half OF
the taxes that are paid by persons own
ing property in the other cities Of the
United States of like size. If this be
living elsewhere to be compelled to
contribute so largely to the expenses
of Washington. and this becomes very
legitimate and proper subject for in
quiry by a disinterested and intelligent
commission.
1t is claimed that. based on 1G0 per
cent valuation. the cities of the United
States of like size of Washington pay
S1@ on the 500 of assessed value,
while the city of Washington pays only
given to substantiate this"
In further reporting on the resolution.
which was framed, supposedly. from an
impartial standpoint. the report states:
Unfairness in Taxation.
Only tangible personal property is as
sessed in the District of Columbia. but
this is very unjustly taxed as compared
with real estate. 1t is assessed at its
supposedly true cash value. and tax OF
S1.JO hundred levied upon the assess
ment, while real estate is only assessed
at 81 on the hundred on the supposedly
like assessment There is no known the
ory of taxation upon which this can De
justified. and 1t clearly reveals she power
and influence of what is commonly known
as the real estate ring in securing leg
islation favorable to its interests.
For the last twelve years moneys.
stocks, credits. bonds and annuities have
been exempt from taxation in the District
of Columbia. while they have been as
sessed in some form or other in every
state of the Union. Men of large accu-
mulated and invested wealth have nat
urally gravitated to the National Capital
as a place of retirement and enjoyment
Perhaps no city of the United States has
SO large per cent of its wealth invested
In stocks. bonds. mortgages and other
interest bearing securities as does the
city of Washington.
Haven for Tax Dodgers"
There can certainly be no justice in
allowing this class of wealth to entirely
escape its share of the burdens of local
self-government. There can certainly be
no reason for allowing the multimillion-
aire who has his property Invested. to
enjoy all the protection and luxuries OF
the National Capital without contribut-
ing his fair proportion
"AH localities assess this class or prop
erty in some form or other. except the
District of Columbia. This condition Gre
ates a very natural refuge of safety to
the professional tax dodger. thus pre-
venting the collection of taxes by the
other local communities without furnish
ing any real benefit to the city OF wash
ington."
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