Evening star., 1924-01-12
Nobody Loves New Taxes.


No self-taxing community imposes
upon itself new tax unless it has
absolute need Of additional tax.money
Tor some specific municipal purpose
and can raise this additional money
with less friction and irritation in no
other way. The new tax must be
necessary; it must be effective; it must
be the choice of the community itself
as the least Of alternative taxing evils.
No self-taxing community taxes it.
self in a certain way because some
other community does so. There is
infinite variety in the combination of
possible taxing methods in revenue
raising in different states and cities.
In realty taxation one state assesses
its property very high and can put its
rate very low: another state assesses
its property very low and in order to
secure Nthe same amount of revenue
must fix its tax rate very high. One
state taxes its intangibles at so high
rate that it chases this form of prop
erty into hiding or outside of its boun-
daries; another imposes a low, reve-
nue-producing rate upon classified in
tangibles; and still another does not
tax intangibles at all.
Washington's taxing body, Con-
gress, though not chosen by and not
representing in American fashion the
Capital community, is nevertheless in
theory supposed to act with as close
approximation as possible to it's nat
ural procedure if it had been In fact
elected by the taxed community. It's
conceded obligation is to reflect as far
as is reasonable the sentiments and
wishes of the unrepresented taxed.
If consideration is to be given to
Washington's views and wishes in re-
spect to tax legislation proposed for
1t the Capital community's sentiments
are easily ascertained.
Washington has expressed a desire
for motor tag-reciprocity with Mary
land, and a willingness to modify its
automobile taxation by substituting a
gasoline tax for the personal tax on
automobiles, this modification being
the only tax change necessary to se-
cure the desired end Of Maryland reci-
procity.
Washington has indicated just as
clearly it's lack of desire to be SUBJ
jected to any new tax to increase its
general revenue or to special tax
on gasoline, even If the proceeds Of
the tax are nominally to be applied
to the improvement of our neglected
streets.
An additional tax on gasoline is
not conceded to be necessary, or ef-
fective for street improvement, and
is criticised as hurtfuI and disturbing
on the sensitive point Of fiscal rela-
tons with the nation unless the pro-
ceeds of the gas tax are all applied
specifically to meet the Districts so
per cent share Of the cost of street
improvement and development.
Washington protests against a sub
stanttal tax increase for which no
necessity is demonstratedl in this post
war era of tax-reduction, and so soon
after the readjustment and increase
of its tax-burdens under the new or
ganic act of 1929. II points to the
fact that a part Of the Districts ac-
cumulated Treasury surplus was col
lected to pay the Districts share OF
the cost of maintaining, improving
and developing the city streets dur
ing the wartime; and 1t suggests that
this portion Of the surplus be spent
now solely upon the Districts share
Of the cost Of improving the neglect
ed streets before any demand is made
for this purpose by new taxes upon
present taxpayers or by borrowing
through a bond issue.
The gasoline tax has its good
points where in the states money
must be raised from the cities to i'm.
vantages are not especially applica-
BILE in Washington. And as new
tax it has no attractions in itself to
make Washington yearn for it. This
tax as a sales tax and as establishing
a precedent for general sales tax is
pppOScu Dy IiOSe VIII 40 IlOL D6lleVe
in that kind of taxation, holding that
1t transfers the burden from the rich
to the poor. and a gas tax bill was
vetoed on that ground in Nebrask
E Washington has no great area of
country roads to be improved, with JUS
tice perhaps, at the expense of city
motorists. Our city streets have been
maintained so far since 1878 on the
$3.50 or 60-40 basis. There are funds
in our Treasury surplus, 1t has been
noted, to meet appropriately a part
: at least Of the Districts share Of the
secost of bringing up to date our neg
:. lected streets, and any attempt to ap-
-sspiy the proceeds of special tax on
9gs soline solely to street improvement
will be apt to disturb and perhaps
violate the definite proportionate con.
tribution system in relation to streets,
and in any event will precipitate the
renewed acrimonious tax discussion of
ratios, rates and relations, which the
peace settlement Of 1929 was designed
to quiet and postpone.
When the already determined equi-
ties In respect to the surplus have
been made practically effective all
that the District asks in taxing legis-
letion by It's taxing body is to be let
alone Washin zton in entitled TO this