Evening star. [volume] (Washington, D.C.) 1854-1972, 1922-05-06
HIGHER TAX PROPOSAL
GETS committee O. K;
D. C. DENIED A HEARING
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Continued from First Page.)
he would be against the fiscal rela-
tons plan because a provision adopt
ed by the Senate to exempt from
taxation the first $4,000 of the value
OF any improved residential prop
erty occupied as home was not con-
tanned in it. This provision, he said,
would really help the poor taxpayer.
Il have noticed" he said. .in the
discussion which has taken place by
members of Che chambers of COM
merce and bankers and other men,
almost universally very wealthy men.
1t has been in the name of the poor
and for the purpose of saving the
poor man from paying taxes: they
want to do so-and-so for the poor
man. They never discuss the propo-
sition except for the purpose of con-
domination, when the same amend
ment contained provision which, IL
enacted into the law. would exempt
from taxation $4,000 of the value Of
every poor mans homestead in the
District of Columbia"
Senator Phipps defended on the
floor the fiscal relations plan drafted
by the conferees and agreed to by the
House.
Sees Misleading Impression.
"A very misleading impression has
gone out among the citizens Of the
District as to the effect of this pro-
! matter of fact it accepts the House
! basis of the 60-40 division of expendi-
lures and makes it permanent until
changed by legislation.
ITO go back, under the basic law
of 1878. and until 1900. the taxes on
property were collected in two in
stallments of so per cent each, No
vember / and May /. The act Of June
6. 1900. provided that thereafter the
taxpayer would not become delin-
quent until the end of May, which
had the result of throwing all COL
| lections into the month of May. in
stead of the payments being made
| in semi-annual installments. as had
| been the custom. and evidently real
izing what that would mean in the
| fiscal affairs of the District, Congress
then authorized the Secretary of the
Treasury to make advances from time
| to time to cover the Districts re-
quirements. and reimburse the Treas
! ury out of the tax collections as re-
ceived by the District.
THE result has been that until the
District began to accumulate some
surplus. in 1916. the Secretary of the
Treasury was advancing large
amounts of the funds wanted TO
| meet the appropriations, but as late
as the year 1921 the amounts ad-
vanced were not excessive. Taking
| the entire year 1921, the advance
ments amounted to s7,202,6O0 in
round figures, all made before the
end of April, after which time the
! District taxes were coming in, and
the government was repaid. AS a
| matter of fact, S101 900 additional
| was turned over to the Treasury of
the United States and put INTO the
surplus. to which the District claims
credit. For tho ten months of the
L..
\ larger and amount to about sS.622. 600
| IF the District, as it claims, has a
| surplus to its credit of some $780,
OOU, which we expect 20 determine
! through the means of bill which
has now been reported out by the
committee on the District OF Column
Eia, with that 100000. plus the
amount which comes in currently by
way of miscellaneous receipts,
amounting to 100000 per year, it
would only be necessary to go back
to the former basis of collecting the
| taxation in two installments, ON No
| vember 1 and May /, in order to en-
| able the District to meet its 20 per
cent of the expenditures for the gov
| eminent of the District, as nearly as
we can estimate it; or. at the worst,
! 1t would mean but a very small addi-
tional amount. which would have to
be accumulated during the next five
years. until the District would be on
a cash-paying basis"
| Attacked by Harrison.
| Senator Harrison of Mississippi, at
| tackled the fiscal relations plan, de-
| claring that the conferees had at
tempted to avoid the rules of the
Senate by not submitting it as a
| conference report, when 1t would be
clearly subject to a point of order
on the ground that the conferees
had inserted new matter. and had
had 1t brought before the Senate
as an amendment agreed to BY the
| House. He made a point of order
| against 1t, but after q parliamentary
| wrangle, in which a number of SEN
ators took part, his point of order wa 8
overruled In pointing out that the
ferees contained matter in neither
the House nor Senate bills, Senator
| Harrison said;
This amendment changed the man.
ner of collecting rents at the Center
market. Neither the House nor the
Senate dealt with that proposition at
all. 1t was not mentioned This
amendment seeks to set up in the
District ground rent for federal
| property. Neither the House amend
ment nor the Senate amendment dealt
with that proposition at all. This
| amendment seeks to change the basis
| of assessment from not less than two
| thirds the value of the property to
| the market value-a question that did
1 not enter into the House amendment
| or the Senate amendment. In instance
after instance the conferees have
| gone beyond the amendment that was
| adopted in the House and the amend
ment that was adopted in the Senate
| but my parliamentary inquiry, Mr.
| President. Is this, because I am glad
| the proposition is going to the com
mittee. I hope it will be considered
| fully. and l am sure 1t Will be con-
| sidered fairly.
This may be all right. have voted
| every time, as a member of the House
| and as a member Of the Senate. for
1 the 60-40 plan. I have ever believed
| that the District should bear its just
part of the burden Of running the
government. / would not favor the
District one whit over other locali-
! ties, Of course taking into considera.
| ton the fact that the federal govern
ment should bear it's part of running
| the District, but. Mr.. President,
1 want to be fair with the District.
| want to see the people here treated
fairly and have an opportunity to De
heard"
1