The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1929-04-24
Refund SMALL
ITEM, SAY
OFFICIALS

Dismlssing the cancelling OF taxes
on interest on State and Federal
securities, which probably will
amount to several hundred thou.
sand dollars. as of little moment to
the people of the District the Dis.
trict, Commissioners today said tn
have no intention of pursuing the
matter any further.
At a meeting yesterday in the
District Building the Commissioners
approved an opinion of Corpora
zion Counsel William w. ride
which recommended that the tax on
State securities be either cancelled
or steps taken to refund to banks
the tax on such income.
Basing his opinion on decisions of
other courts. which have held that
neither Federal nor State securities
incomes are Ia BILE. the corpora
ton counsel recommended the ac-
ton taken by the District heads,
Fiscal officers of the District are
alarmed at the prospect of what
may develop in the next year or
two. now that banks and trust com.
panies are exempt from payment of
taxes on the securities in question,
That the personal tax of the indi.
vidual and smaller business concern
will be increased materially there
lis no doubt
Gloomy Picture
Painting rather gloomy picture,
one official pointed out that the
large corporations and men of large
fortunes may now, under the rul-
ing of the Commissioners, load up
with the securities which are ex-
empt and cut their payments to
the District to fraction of what
they now must pay.
The smaller investor and banking
institution, lacking funds to invest
in the securities exempted. will find
themselves paying a higher per.
sonal income tax than the wealthy
institutions, in some instances. The
same will apply to the salaried
man.
A small change in the present
law, which, of course, will have to
be enacted by Congress, in the
opinion of several attorneys, would
put the securities now exempted
again within the province of the AS
SCISSOR of Taxes.
Change Slight
The change recommended would
be slight by merely changing the
act to- read "a franchise tax of s
per cent shall be levied against in
come from all sources"
The Commissioners have stated
that they will make no effort to
have the law changed, but will
stand on their ruling of yesterday.
They are inclined to view the
opinion of the Corporation Counsel
Is the final word in law.
The amount the District will lose
from the banks now investing in
the exempted securities will amount
to approximately 100000 a year.
In view of District records this is
most conservative sum, District
heads concede.
1t Is deemed likely however, that
outside interests will appeal to Con-
gress to have the law amended SO
that "it will be less discriminatory
against the small corporation and
the individual
Report on Refund
william +. Richards, District Tax
Assessor, is now compiling a report
which will be submitted to the Dis
'trict Commissioners showing just
how much the District must refund
and the amount that will have to
be cancelled on his books.
These figures will not be avail
able for several days, the assessor
announced, as a great deal of work
will be required before the exact
status of the various, banks can
be determined
In the matter of refunds, it is
likely some court action will have
to be taken by the banks, but in
view of the attitude of the office
of the corporation counsel such
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