Evening star. [volume] (Washington, D.C.) 1854-1972, 1917-02-21
Postpone Intangibles Tax.

Whatever tax on intangibles is i'm
posed in Washington, it should be in
readjustment and not in increase of the
aggregate local tax burden, which the
joint congressional committee, after
thorough consideration, has declared to
be heavy enough, no more than which
can equitably be exacted.
Congress in readjusting the burden of
local taxation must, in order to be fair,
give the relief from excessive and in
equitable taxes at the same moment that
it adds the new tax upon intangibles.
In the Senate debate when the intangi
bles tax provision was adopted Senator
Gallinger pointed out the extraordinary
and excessive license taxes imposed in
the District, and suggested that they
should be reduced or eliminated if the
tax on intangibles We're to be imposed.
In the same connection reduction of
the excessive realty taxes, especially in
their application to small property own
ers, was suggested. And running through
the whole Senate debate was the
thought, not of an increase of the tax
burden of the small property owner and
taxpayer, but readiustment of this
burden, which, SO far as he is concerned,
should cause it to be even more easily
borne. But if the promised readjustment
is to be carried out in good faith the
offsetting decreases in taxation must go
into effect simultaneously with the in
creases. If the latter are enacted to go
postponed, they are likely never to be
made.
1t may be possible to adjust the pres
emit District tax burden more equitably,
more uniformly, with greater fairness
to the small property owner. This re-
adjustment should not be attempted or
carried out in such clumsy and inequi-
table fashion that the result is simply
to increase for everybody, small tax
payers and large taxpayers alike, the
over-heavy tax burden now imposed.
All of the facts and figures demon
strate that Washington's light person
atty tax. due, in part, to the exemption
of intangibles, is more than Offset by
the heavier tax on realty, and by heavier
business taxes than in comparable
cities, and that if revenues from per-
sonalty taxes (Which are now lighter
than in comparable American cities) are
increased as proposed there should be a
corresponding reduction in the Excess
sive realty tax Gas by the exemption
from taxation of limited amount of
realty improvements and by cutting
down or eliminating the burdensome Ii
eense taxes on occupations.
Since then the increase in the total
tax burden through the addition of the
new tax on intangibles should in equity
be simultaneous with a corresponding
decrease in the excessive realty and
business taxes now imposed tie increase
and the offsetting decrease should go
into effect ON the same date. There is
no prospect that this ofsetting decrease
can be enacted by Congress in season
to 60 into effect the LIST of next July,
the date set for the operation Of the in
tangibles tax. It follows that in equity
whatever intangibles tax Congress shall
frame at this session should by post
ponement go into effect at some later
date simultaneously with these equitable
readjustments and offsetting decreases
in the total tax burden. Postponement
Of the going into effect of the new tax
system until July, 1918, would injure
no one and would do justice to the
capital community.