Evening star. [volume] (Washington, D.C.) 1854-1972, 1918-03-09
An Equitable Rentals-Fixing Law.

remaining IS to settle the equitable
rentals of certain real estate while the
war continues. The johnson bill fixes
rentals indirectly by imposing penal
~ upon excess rentals which is dis
guiseG as an income tax.
The law would be fairer and wiser if
1t omitted the income tax camouhage al
together and proceeded directly to the
fixing of specific equitable rentals.
However, the same considerations
which show that rentals fixed under the
johnson bill are uneven and inequita-
BILE demonstrate that the so-callcd in
come tax fixed by the same false stand
ard entirely lacks uniformity and
equity.
Under the johnson bill the real es-
tate rentals of 1856 become the
standard Of measuring and fixing an in
come fax of 1917 and real estate rentals
of 1918 and thereafter
This standard of measurement is shift
ing and unreliable This yardstick now
contracts, now expands, and measures
falsely.
l. Neither equitable rentals nor 4 uni
form tax can be based on the false as
sumption that the rentals of any date
IN the past were fair and uniform. and
can now serve as q safe standard of
measurement. Rentals CT 1876. when
the housing supply much exceeded the
demand. showed inst as many inequaIi-
ties, just as glazing lack of uniformity.
as the rentals of today when the hous-
ing demand far exceeds the supply.
To add 10. per cent or any percentages
to 19lj-16 rentals and to substitute them
for the actual rentals of 1918 is merely
TO put the rental inequalities of 1856
in place of tie rental inequalities of
JOS, with no resulting Improvement of
the equities
: The conditions of supply and demand
in 19lJ-15 gave the advantage 20 the
tenar. over the landlord, and agree
ments to accept too low rents were in
many instances cxacted from landlords
The process is reversed il 19I1IS. The
:inequities of neither period should pre-.
vail
49,. There are rentals of 1856 which
were forced so low by the conditions
then prevailing that the leases have
brought little or no profit over expenses
to the landlords To make these leases
the STANDARD Of rentals for 1918 is TO
perpetnate iEcquitics which are as gross
as those OF 1918. which We are attempt
ing to cure.
:. another set OF inequalities and VIC
.lations Of uniformity results from the
fact that the johnson bill sets up wide
" differing standards of taxation and
.rentals-fxing between real estate that
happened to he rented in 1876 and
real estate that did not happen to be
then rented. The first standard is the
1876 rental plus 10 per cent The
second standard is a gross rentals in
come of 10 per cent on the assessors
valuation OF the leased property. These
standards based on radically differing
foundations produce when practically
applied grotesquely and unjustly variant
results.
,. Still another set of inequalities and
anequities springs from the arbitrary
fixing of 10 per cent of the assessed
value OF real estate as the maximum of
gross income 10 be derived from the
property. This standard with unjust
results disregards the widely varying
service cost and general expense de
auctions which fix the net income and
real earnings OF each piece of rented
property.
e. The so-ca!ied tax proposed by the
Johnson bill bristles with iniustices.
Inequalities, grossly negotiable dis
examinations. It is tax on the income
of real estate, enforced by a lien on
that real estate. 1t has been demon
strated that Washington real estate
estaggors under a tax burden which is
greater than that of any city of Amer
lea with which it can fairly be compared.
Nobody exercising in good faith the tax
ing power would select Washington real
estate for the imposition of ncw tax
burden. II is conceded TO be that kind
of taxable property which Is here al
ready most excessively taxcd.
The lack of uniformity and the gros,
discrimination in the application of this
Income tax are obvious. The amount of
the tax of \, b or is the sum in which
his real estate rentals Of 1918 exceed
his sponding rentals of 1876 plus
10 per cent. The amount Of the tax of
X, Y or u IS the sum in which his gross
rentals income exceeds 10 per cent of
the value placed or TO be placed by the
ssassessor upon his property The in
equalities among A, B and c in their
class and among y, Y and Il in their
selass have already been indicated. This
Proposed tax lacks no characteristic of
discriminatory, unfair. unwise and &C.
centric taxation.
The only advantage gained by calling
- L. Al