Evening star., 1921-12-18
The Evening Star Newspaper Compan
Rate by MaiI-Payable in Advance.
MARYLAND and Virrinia,
Our Proposed New Tax Law.

Our Proposed New Tax Law.
The Senate bill, settling or unset
Ting the Districts fiscal relations.
fixes at 31.75 the tax rate ION personal
and real estate" The bill should, of
course, be reconsidered, as proposed,
in order to insert the word tangible"
before personal in the bill, so that
the new tax rate cannot possibly apply
to intangible personal property. The
$1.75 rate is not intended. Of course,
to apply to intangibles. and the bill
as it reads may not be construed to
make this application, but it is better
to be explicit and safe.
In the Senate discussion Of this bill
senators cited some old cases of
wealthy tax-dodgers from the states
who took refuge here when there was
no tax on intangibles. as if these cases
had some bearing today. We now have
among the statutes modern, revenue
producing law imposing light tax
on intangibles, which reduces perjury
to minimum and raises every year
approximately a million dollars of tax
money. The old method Of applying
to intangibles the same rate as that
applied to realty and tangible person.
: atty has utterly broken down and is
thoroughly discredited.
II on the theory that this is still a
haven of refuge for tax-dodgers the
tax rate on intangibles were raised to
the realty and tangible personally tax,
rate revenue would be cut down. per-
jury would be promoted. and the
wealthy. itinerant tax-dodgers, il there
are any here. would move over the
line into Maryland. which has also
the modern, progressive, low-rate tax
on intangibles, or to Wilmington, Del,
which, unless there has been a change
recently, imposes little or no tax on
personally.
In 1915 Washington raised its tax
money by a very heavy tax on realty
and a tax on personally producing
small revenue. In 1920 the revenue
from personal taxes had so increased,
partly through the new tax on in
tax per capita was high up in the list
of typical cities. exceeding. for example,
the personal tax per capita Of such
cities as Indianapolis. Milwaukee,
Chicago. Louisville. Atlanta, Balti-
more, Jersey City, st. Louis and Phila-
delphia.
Washington's total tax levy in 1920
was approximately twelve million dol.
lars. nearly million less than the
total tax levy Of Milwaukee, and one
and three-quarter millions more than
the total tax levy of New Orleans.
Under the old permanent law Of 1873
Uncle Sam, with certain substantial
deductions. would duplicate this tax
money when he came to spend it for
the maintenance and development of
the capital. Under the temporary
1880 ratio of the last two years Uncle
Sam, after making the same deduc.
tions, would add two-thirds to Wash
ington's tax contribution for capital
development.
If the Senate bill were a law Uncle
Sam would not be bound to add any
thing for capital maintenance and de-
velopment to Washington's twelve
millions. He would not be bound to
spend on the capital even these twelve
millions, for they would no longer
be recognized as Washington's.
Under the proposed new law Uncle
Sam, through Congress, can tax the
District what he pleases, twelve, four
teen, sixteen millions, and dump these
millions into the Treasury's miscel-
laneous receipts receptacle, and there
upon cease Immediately to be account
able for a dollar of these millions to
- the District or it's taxpayers. Uncle
Sam, through Congress, can then pro-
ceed to exercise the power which he
always has had to spend as much on
capital development as he pleases. and
can also exercise the new power under
the new law Of spending on the capital
as little as ne pleases. even though he
spends for this purpose a smaller
amount than this tax money, exacted
by an alien tax-gatherer from the un-
represented, unconsulted. non.cansent.
ing District taxpayers.
The suggestion may be viewed as
Z fanciful that Uncle Sam will ever
spend other than far more than the
District ta1money contribution for
. capital development in any year. But
:: it is to be remembered that in 1914
representatives who were fighting for
: the new law, now yielded by the SEN
ate, insisted that reasonable" and
!. equitable" taxation in the District
would raise between fourteen and fif-
:. teen million dollars, and that only be-
tween twelve and thirteen millions
= needed to be then appropriated an
nually for District maintenance. II
the views OF these representatives had
then prevailed. and the proposed new
law had in that year been put in ef'
feet, Uncle Sam would have confis.
Gated from the District under the
camoufiage of tax levy two millions
more than. he. expended on capital
maintenance and development.
go
The financial question as PROFOUND
ed by Germany to France is. in effect,
NVH