The Washington herald., 1921-12-15
Ends Fixed Ratio and
Exempts $1,000 on Real
ty improvements.
SURPLUS ADDED
TO ESTIMATES
Senator King Charges
Tax Dodgers Find
Haven in Capital.

Capital. IL the bill becomes a law.
will be reduced to si.75 on
each 500 valuation. and IL this is
deemed too low by the appropria-
tion committees OF Congress a fur
ther raise may be required.
There will be no $3.50 or other
liked ratio.
The first $4,000 OF value on Inn
| provements of real estate will be
exempted.
Adds Surplus to Estimates.
The unexpended surplus of Dis
trict revenues, amounting to more
than s4.0o0,00O, now in the United
| States Treasury. will be added TO
the District estimates for the next
| fiscal year.
Hereafter no limit will be made
upon the amount of estimates to
be submitted to Congress to meet
| the needs of the District.
The Jones bill. providing that the
Federal government share equally
| in the expenses of the local gov
ernment. was wiped out with
amendments. only three lines Of the
| original measure remaining, as fol-
lows:
That the general expenses of
the District of Columbia shall be
chargeable to and paid out OF the
treasury of the United States"
Believe Taxes Too Low.
Debate was renewed early yesterday
afternoon, following the attacks upon
the $3.50 proposal Tuesday by many
Senat ors who argued that taxpayers
of some States were bearing three
times the tax burdens of Washington
where incomes and inheritaSices are
exempt and the tax rates low, and
these people who do not all enjoy the
advantages Of Washington should not
contribute 10 the wealth and enjoy
ment of people who are fortunate
enough to reside here.
Senator King. of Utah. leader of the
opposition to the ratio plan, reiterated
his charges that tax dodgers were
making this a haven because of exemp-
tions on intangible wealth. He de-
clared that he would present to the
Senate District Committee a bill pro-
vidng for a tax commission and the
draft Of a revenue system for Wash
ington which would ensure fairness.
both to the Federal government and to
the people who i've mere.
Amendment Fixes Rate.
The first amendment yesterday was
that Of Senator Caraway, Of Arkansas.
striking out all of the bill except the
three lines providing that the Dis
trict's expenses shall be chargeable to
and paid out Of the Federal Treasury,
and substituting the following:
Section 2. That the rate OF taxation
shall be fair and reasonable and the
revenues derived from this source
shall be covered into the United
States Treasury as miscellaneous
revenue.
Section 8. Until otherwise provided
by law the rate Of taxation in the
District of Columbia on personal prop
erty and real estate shall be $1.75 per
500 and other taxes shall be as now
provided"
Left to Congress.
In effect this leaves 1t discretion
ary with the Appropriation commit
tees of the two branches of Con-
gress to decide, with the approval
of Congress, what the fair rate
shall be. The House has insisted
that 60-40 is a fair ratio. while the
Senate Appropriations Committee on
the District, of which Senator Jones,
of WASHINGTON, author of the $3.50
bill, is a member, held that the ola
law, established in 1878, should re-
main in existence. That is the half
and half law.
Senator Curtis, of Kansas. chair
man of the Appropriations Commit
tee. stated in the course of the
debate that 1t has not been sub
stituted by the passage of a 6o-40
OF any other law.
The prospects are, according to
some members of the Senate, that
the next fiscal bill will carry the
6O-40 ratio, as has been done dur
ing the past two years upon in
sistence of a big majority in the
lower branch of Congress This
will depend upon the possibilities OF
a tax commission and the drafting
of laws fixing a more definitely de-
termined "fair rate" of taxation.
When the question of fairness is
settled 1t is the aim of the bill to
require the Federal government to
make up the deficit required for
District expenses after the local
taxes are turned into the Treasury,
whether that deficit be $3.50, s0-I0
or 1890.
Senator Jones proposed a second
amendment to the bill. as follows:
Section 4. The appropriation of
an amount equal to the unexpended
or unappropriated surpluses OF the
District revenue shown by the re-
ports of the Commissioners to have
been heretofore accumulated and
deposited in the Treasury Of the
United States in addition to the
estimates submitted for the next
fiscal year is hereby authorized, and
hereafter there shall be no limit
upon the amount of the estimates
to be submitted to Congress to
meet the annual needs of the Dis
trict government, any law to the
contrary notwithstanding"
Provides $4,000 Exemption.
Senator Norris, of Nebraska, pro.
posed the third amendment, which
follows:
Section 5. In fixing the value of
improvements on any lot or tract
or real estate for the purpose of
taxation the first $4,000 of value
thereof shall be exempt and, shall
| not be taken into consid erati In
the fixing Of value"