Evening star. [volume] (Washington, D.C.) 1854-1972, 1917-02-24
ASKREADJUSTMENT
OF D. c. TAXATION
Civic Bodies Submit Brief to
Conferees on District Ap-
preparation Bill. /
INJUSTICE is POINTED OUT

Arguments for an adjustment or
taxes in the District OF Columbia so as
to make them equitable in view Of the
tax on intangible property Were sub
mitted to the House conferees on the
District appropriation bill today by the
Washington Board of Trade and the
Federation of Citizens Associations. 4
request Is noted at the same time that
the tax on intangibles may not go into
effect until July. 1918. the explanation
being made that this would injure no
one and would give ample time for tho
new joint committee of Congress.
charged with the duty of making all
necessary readjustments in the entire
tax system. to give proper considera-
tion to the entire subject and submit
their recommendations to Congress.
Unless this is done, the intangibles tax
will work many hardships and there will
be no compromising changes in the tax
laws as they have existed hitherto.
Proposals for Exemptions.
1t is pointed out In tho brief submit
ted today that in addition to the adop-
ton Of the Sterling amendment, which
provides for the tax on intangibles.
these recommendations should be con-
sfdered and adopted: Bank deposits
should be exempted: mortgages and
deeds of trust incum brances should be
exempted; and II intangible invest
ments are to be taxed. the individual
should have a credit in his tax return
for the amount of his debts.
In urging the exemption OF bank de-
posits, it is argued that II these de-
posits are not exempted heavy with
drawals will undoubtedly occur. 1t IL
pointed out that Maryland does not tax
bank deposits. although Maryland
tax - intangibles. 1t is also stated that
mortgages and deeds of trust incum-
brances are not taxed in Maryland.
Referring to this last phase. ii is
explained:
IF mortgage loans are taxed the
man who owns a f1ve-thousand-dollar
home upon which there is three
thousand dollar loan. and who is saw
ing money to pay off the loan. will be
taxed three times on the same thing.
as follows:
First: He pays a full tax on the
real estate.
Second: The tax on the mortgage
will be passed on TO him by the owner
Of the mortgage raising the rate OF In
terest one-half of one per cent This
ing money on real estate since the in
tangible law last year.
Third: He will be taxed on the
money in bank in excess of the $500
saving deposit which he is accumulate
ing to pay off the loan"
Credit for Debts Urged.
This example is cited in support Of
the argument that if intangible in
vestments are to be taxed the indi-
vidual should have credit in his tax
For Of h;
IF man or woman has accumulated
sand-dollar real estate trust note, but
subsequently is obliged to borrow
money-say s500-and has the one
thousand dollar investment and the
NEUTRALITY-SUSPICIOUS. Indebtedness at the
time of the investment, the $500 should
be subtracted from the $1,000, and the
tax should be on the remaining $500"
Attention is called to the fact that
the joint committee provided for in
lines seven to sixteen of the District OF
Columbia appropriation bill. is ap-
pointed to make "a careful and exhaus-
tive study of the tax laws of the Dis
trict of Columbia, including license
taxes, with a view OF recommending
such changes in the laws as the joint
committee may deem fair and equit-
able. report to be made to the Con-
gress during the next session"
The provision above quoted I'M
doubtedly contemplates equitable re-
adjustment in the local tax laws" con-
tinues the brief.
Proper Time for REIMBURSEMENT.
Congress in readjusting the burden
of local taxation must. in order to be
fair, give the relief from excessive and
negotiable taxes at the same moment
that 1t adds the new tax upon intan-
gibles In the Senate debate, when the
intangibles tax provision was adopted.
the extraordinary and excessive license
taxes imposed in the District were
pointed out. and II was suggested that
they should be reduced or eliminated IL
the tax on intangibles were to be i'm
posed. In the same connection re-
duction of the excessive realty taxes.
especially in their application to small
property owners, was suggested.
And running through the whole Sem
ate debate was the thought, not of an
increase of the tax burden OF the small
property owner and taxpayer, but
of this burden, which, so
far as he is concerned. should cause u
to be even more easily borne But III
the promised readjustment is to be
carried out in good faith. the onset
ting decreases in taxation must go into
effect simultaneously with the IN
creases. If the latter are enacted 10
20 into effect next July and the former
are postponed. they are likely never TO
be made.
The brief is signed by Z. c. Branden-
burg. president of the Board of Trade.
and F r. CoIladay. chairman of tho
special committee on tax on intangl-
bles of that organization: Charles
Shreye. president of the Federation OF
Citizens Associations, and Clyde ID.
Garrett chairman committee on finance
and legislation of that organization.