The Washington times., 1919-09-11
AGAINST
D. c. TAX XINCREASE

The bill. introduced by Congress-
man James P. Woods Of Virginia, pro-
viding that the tax on intangible
property in the District OF Columbia
be increased from 3 per cent 10
per cent, has met with the disapprovsi
of bankers and business men in
Washington.
II this bill, which is now before the
House Committee on the District OF
Columbia, is passed, 1t will mean that
persons, firms. or corporations resi-
dent or engaged in business within
the District will have to pay IS in.
stead of SO per thousand on all
moneys loaned or invested, bonds,
stock, except stock of banks and
other corporations within the Dis
trict, the taxation of which banks
and corporations is already provided
for.
1t has been pointed out that such
an increase in the tax on intangible
property would work q hardship on
persons and firms within the District.
While il Is certain that Washington
has a lower tax rate than probably
many States, conditions in Washing
ton differ widely from those prevail
ing in other parts Of the country.
The lack OF industrial plants here
is probably one OF the reasons why
such an increase might be detrimen-
tai to local conditions. Washington
has a fixed interest rate Of per
cent, while in many States the inter
est rate ranges considerably higher.
The passage of this bill, II Is fear
ed by local bankers. would seriously
affect business here, and probably
render the National Capital q less at
tractive place from the point OF view
of business.
This tax provides, however, that
savings or other deposits of indi-
Viduals in a sum not in excess Of $500
deposited in banks, trust companies,
or building associations shall be ex-
empt from the increased tax. II
also excludes institutions engaged IN
business in which no profit is allow
ed. such as relief associations and
benefit societies, from being subject
to this tax.
The Secretary of the Treasury offers
subscription at par and accrued inter
est, through the Federal Reserve
banks of the Fifth district, certih-
Gates in series TIE, being payable on
March Is, 1920, and bearing interest
at - per CENT anu ANNAE9
T-1O, being payable at ~ per cent in
terest, September 15. 1920.
Certificates Of these series will be
accepted at par, with an adjustment
Of accrued interest during such time
and under such rules and regulations
as shall be prescribed by the Secre-
tary of the Treasury, in payment OF
income and profit taxes, payable at
the maturity Of the certificates, re-
spectively.
The international trade situation
cannot be definitely cleared up until
the political status Of European
countries, such as Poland and Checko-
Slovakia, is thoroughly defined by the
treaty of peace. =
Business firms are inclined to dis
approve OF extended Government
financing when conditions abroad
are cleared for business, except
probably through the War Finance
Corporation.
The local stock exchange was active
today with a considerable trading
taking place and mucI interest shown.
in the bond line $1,000 of Potomac
Electric General 6's sold at es.
TWENTY-FIVE shares OF Capital Trac-
tion changed hands at ss. Lanston
sold at 40, and Columbia Graphophone
was traded at As. Washington Gas
sold at 40.