Evening star., 1922-05-04

mlttee vigorously opposing changes
in the tax system in Washington; an
| address by Representative j. Charles
Linthicum of Maryland, and two i'm
promptu talks by Representative
Otis Wingo of Arkansas and Repre-
| sntative John Robson of Kentuckey
featured the meeting last night of
the Washington Board of Trade at
| the City Club.
The report of the committee on
municipal finance, which had been di-
rected to prepare a resolution on the
proposed changes in the tax system,
was presented by Roger ]. White
ford, new chairman Of the commit
tee.
| Amazed. Says Whiteford. '
| "Washingtonians were amazed last
| Thursday" said Mr.. Whiteford, when
they read in the papers of the report
of the conferees Of the House and
Senate. which proposed revolutionary
| changes in tax conditions in the Dis
trict. 1t is a question that vitally az
| fects each and every one. of US here.
ITO begin with. it saddles an undue
burden on District taxpayers. 1t
| looks like the entering wedge on the
part of those who fostered it to put
inequitable and unfair burdens on US
as they see fit.
| AS the committee looks at this
! piece of legislation it has three sep
arate and distinct parts. The first
! is the assessment at full value OF
property when it is now only two
| thirds; the second, the increase on
tax rate on intangibles. and the
third, the establishment of surplus.
| No Real Advantage.
| I'm answer to the first. there Is no
| real advantage to be gained by chang
ling the assessment valuation. 1t
! makes new assessments all around.
| Property that has been assessed Will
have to be gone over and reassessed.
Not only that. but 1t will put US in
an unfavorable position with other
cities and will increase the tax in
| some cases as high as SO per cent
| whether the increase in the in
; tangible tax will mean an increase
| in revenue is hard to foretell. 1t will
mean certainly an exodus from the
| city of all those who are able to get
| their intangibles out.
| AS far as the surplus is concerned
it will mean putting the District on
| d cash basis: something that Con-
gress itself can control 1t will pro-
| tect Congress when it needs no pro-
, lection. If there Is dissa abstraction with
! the time when District taxes are col
lected let Congress set a different
| time. Why let the money lie idle in
! the Treasury drawing no interest
i when Congress has absolute control
! of when the District shall pay its
! share? 1t will mean less and less for
| the federal government to pay and
more and more for the District as the
years go on
| Resolution OF Protest.
! Mr.. Whiteford introduced the fol-
lowing resolution. which had been
drafted by his committee, composed
of E. C. Brandenburg and Theodore
w. Noyes. .-
the Senate and House Of Representa-
| tives, in charge of the District ap-
propriations bill, have offered an
! amendment to that bill dealing with
the question of assessment in the
/ District of Columbia.
protests against the amendment as
! follows:
! I'VE protest against the proposed
change of the standard assessment
from not less than two-thfrds to full
| valuation. If the District tax rate is
decreased to conform to the. increase
of assessed valuation the revenue re-
| suit will be the same and no practical
benefit will be derived from the un-
settlement and hurtful confusion in
! figures. If the tax rate is not de-
creased tax on realty will be in
creased in some percentage up to SO
! per cent as maximum. In com
| parison with other typical and COM
! parable cities. Washington's realty is
| already too kheavily taxed and the
| proposed increase of the realty taxes
means higher rentals. increased cost
of living. and threatened business
! disaster.
! Wider Range Already Taxed.
| 1--WE protest against the proposed
! increase of sc 2-3 per cent in the tax
rate on intangibles. A wider range
of intangibles is already taxed in the
Capital than in the states in the class
! in which the District falls in respect
to its method of taxing intangibles.
and with an increase from to 5 mills.
| its tax rate will be larger than that OF
these states. Washlngtons intangiple
tax burden will then be greater than
that Of the citizens of neighboring
Maryland, Pennsylvania and Della
ware. The effect Of the increase will
be to invite owners of intangibles to
remove them from the District. The
extent of response to this invitation
to depart is uncertain, and it is not
known whether the increase of rate
means an increase or decrease in
the Districts intangible tax revenue.
One result, however, is certain. The
permanent residents of the District
who cannot fly in an hour or two
with their intangibles to the deposit
vaults of Baltimore and Wilmington.
and who cannot evade the new law.
will suffer nearly a doubling of their
intangible tax and unnecessary and
grossly ineauitable tax imposition.
Regret Failure of COngress.
I'VE regret the recent failure of
Congress to recognize the existing
tax surplus of the District of Colum-
bia and to utilize It to pay the Dis
trict's share of the cost of many
great and urgent municipal needs,
like water supply increase and con-
struction of additional school build
ings.
1--WE protest against the PROPOSE
ton to create by increased tax on
realty and intangibles a new and
larger surplus, not to pay the Dis
trict's share of great and highlybene-
ficfal permanent improvements, but to
lie unused in the Treasury of the
United States to protect the national
government (Which has absolute
power of control in its hands, and
needs no protection) against the ne
cessity of making slight and short
time advances to meet the District
outlays before District taxes become
available. Congress has Heretofore
authorized the taxpayers TO pay the
whole of their taxes near the end of
the fiscal year instead of near the
beginning, or in two installments.
The taxpaying community has moth
ing whatever to say concerning the
time when it shall pay its taxes. If,
now, the nation feels dissatisfied or
iisadvantaged ii in any way with the