Evening star., 1917-01-05
Changes in District Tax Laws,
Including IntangibIes Tax, to
Make Them Equitable.
DC. BURDEN HEAVY ENOUGH
Editorial Correspondence of The Star.
BY THEODORE W. MOVES.


approved Sept. l. 1916. Pub. 250-64th
Cong.)
Section H. Section 6 of the act of
July /, 1902, "An act making appropria-
tions to provide for the expenses of the
government of the District of Colum-
bia for the fiscal year ending June so,
1908, and for other purposes" is here
by amended by adding, after paragraph
2 of said section:
/ THAT the moneys and credits, includ-
ing moneys loaned and invested. bonds
and shares of stock Except the stock
of banks and other corporations within
the District of Columbia the taxation
of which banks and corporations is
herein provided for), of any person,
firm, association, or corporation resi-
dent or engaged in business within
said District shall be scheduled and ap-
praised in the manner provided by
paragraph 1 of said section 6. for list
| ing and appraisal of tangible personal
property, and assessed at their 1air
cash value. and as taxes on said mon
eys and credits there shall be paid to
the tax collector of said District four
| tenths of / per centum of the value
thereof: Provided. That savings de-
posts Of individuals in sum not IN
1
| trust companies, or building assoc1a-
tions, subject to notice of withdrawal
and not subject to check, shall be ex-
empt from this tax: Provided, further.
That /, joint committee consisting OF
i the committee on the District or Co
| lumbia of the Senate cnd the commit
/ tee on the District of Columbia or the
House of Representatives is hereby ap-
| pointed to make by subcommittee OF
| otherwise a careful and exhaustive
study of the tax laws of the District OF
Columbia, including license taxes, with
| a view of recommending sucn chahses
| in the laws as the joint committee may
deem fair and equitable, report 10 pc
made to the Congress during the next
session"
EQUITABLE Changes in D. c. Tax Laws
What changes I'm the District tax
laws, including the new intangibles
tax. shall Washington urge upon the
joint committee and upon the aDDro-
priation. committees ms "fair and
equitable"s
In tax discussion this winter how
Tar are NE Of Washington benefited by
the favoring decisions OF the fiscal
session? A vital conclusion Of fact.
upon which the decision of Congress to
maintain the half-andhalf law was
, based, is that the WashinEtonian's tax
burden Ii In the agxreEate as iarxe as
that imposed In comparable American
cities, and that. therefore, no more than
this aggregate can equitably be exact
ed AS a result of this conclusion the
Washingtonian's aggregate tax burden
cannot equitably be increased, either
through repeal of the half -and-haf law
and reduction of the nations proper
tionate contribution or by the addition
of any new tax without correspond
ing reduction in the old taxes. 80 that
the aggregate burden may remain the
same.
The new tax on intangible personally.
being unaccompanied by corresponding
decreases in the existing excessive
realty and business taxes. is an IN
equitable increase and not an equitable
readiustment of the Washington1an's
tax burden.
Repeal or Radically Amend Intangi-
bles Tax.
The new Joint congressional fiscal
committee. created at the last session
in connection with the enactment OF
the intangibles tax. for the avowed
purpose of shaping the provisions OF
the hastily enacted new legislation in
conformity with equity. may reasona-
bIy be asked to follow either of two
alternatives:
D,
however light the rate. has no place
under existing conditions in an equfta-
BILE readjustment of the local tax bur
den: that such a tax law today in the
District is unnecessary, fncGuftnble,
imposing double taxation on the same
property and, as framed. is inevitably
and unjustly uneven IN ITS appicat,oh'
nenaliZing yeracity, rewarding faIse-
mood. falling the lightest on those who
are most expert in swindling conceal
ment and heaviest on the truthful ana
the honest: and, as conclusion. thas
the intangibleS taA Pro'isioH eHoN
be repealed.
! Congress Is viewed ms undesirable or
hopeless, then to make snch chahEes
.xstem and in the intnngibies tax ms an
| integral part of that system a" VIII
I.1 reduce to a minimum the ineIuf-
! table features Of that law, .ne,"a.nr .,tu:
,ud Oh will effect q simultaneous re-
/ duction to the full amount OF the pIo-
ceeds of the new tax IN the pre"en.
cc..ixe taxes on realty. on licensed oc-
cupRtiOns and on tne sro""
certain corporations.
Tax Read djustment, No Tax Increase.
The broad principle upon which Wash
,,o,op rests it's petition in equity is
,hat II a tax on intangibles is def
,;.a1v and finally enacted for the Dis
,rict it should be SO framed as to be
| a rendjustment Of the local tax burden
and not an Increase of it.
| An of the facts and figures demon
strate that washington's light, per.
saaattv tax. due to the exemption of
intanpibles Is more than offset by the
heavier tax on realty and by heavier
| ..husiness taxes" than in comparable
,.;,iss and that IL revenues from per-
sonalty taxes (which are now lighter
than in comparable American cities,
re Increased as proposed there should
ha a corresponding reduction partly in
the excessive realty tax, partly by cut
,;ng down or eliminating the burden
sn,oa license taxes on occupations and
partly by reduction a, Of the sseessISe i've
| .nnss earnings of banks and trust COM
nanies and similar corporations.
tTo be continued)
Continues B. and NJ. Receivership.