Evening star., 1930-12-11
TAX OVERHAUL|NG
FOR CAPITAL URGED
BY NOTED EXPERT
Or. Thomas Walker Page
Suggests Income Levy
at House Hearing.
WARNS AGAINST AMY
ADDED BURDEN, HOWEVER
Dr. Havenner Recommends Definite
Policy on Fiscal Relations
in Testimony.

complete overhauling of the Distr,c,,.
TAX system was advocated TODAY bv ~
1nomas Walker Page, internations,,,
known economist and q member AZ A..
Feoerai Tariff Commission, at a hear,rs
DeIore the special committee q, tho
House appointed to study the n.oaI
relationship between the Federal AND
District governments.
Dr. Page suggested the substitution
OF an income tax for the present tax
on intangible personal property. an
inheritance tax to bring the Distric,
INTO conformity with States having such
a tax, and fixed real estate tax. Hs
also urged abolition of the present tax
on tangible personal property as well
as the modernization of the tax on
business.
DR.. Page told the committee that IN
revising the tax system 1t should not
impose any additional taxes, since ne
ielt that the tax burden in the District
Is already high. He declared that It is
his belief that the solution of the fiscal
relations problem rested in a revision
OF Washington's tax system, which
would give Congress and the people of
the United States the assurance that
the residents of the District are paying
reasonable taxes. After that is done,
he said, the Federal Government should
meet the additional expenses due to
the fact that Washington Is the seat
Of the National Government.
Havenner Urges Definite Policy.
DIR. George G. Havenner, president OF
the Federation of Citizens Associations,
was the only other witness heard. He
urged the committee to recommend q
definite policy of fiscal relations, based
on plan involving the relationship of
Government-owned property and tax
able private property, with an adjust
ment for excessive exempt property.
I'VE believe" said DR.. Havenner,
there Is O. constant relationship be.
tween the values of governmental
property and taxable property. ANY
fiscal policy between the taxpayers and
the Federal Government should, there
fore, be based on plan involving the
relationship Of their property values and
adjustment. Of excessive exempt prop
erty.''
DR.. Havenner pointed out It was not
mend what amount it thinks the Fed
eral Government should contribute
toward the expenses of the District, but
merely suggest the factors that should
be considered In determining that
amount.
DR.. Page was called before the COM
mittee when it discovered that he had
written q chapter on taxation in the
District for a book published by the
Brookings Institute on THE Govern
ment and Administration of the Dis
trict Of Columbia-Suggestions for
Change"
Real Estate Tax Too Elastic.
At the very outset of his testimony,
DR.. Page said it was his opinion that
the tax system Of the District needs a
pretty complete overhauling" He de-
clared that the real estate tax, for in
stance, is too elastic, and is relied on
too greatly as a means of producing ad-
ditional revenue when 1t is needed.
There should be fixed real estate tax,
he said, which would be comparable
with the real estate taxes in other COM
to some extent comparable to
In suggesting an income tax as a sub
Stitute for the tax on intangibles, DR..
! d6O ouA0 ~ AAuQ 0CCIl III IIlOSJ
cities that 1t had been too easy to con-
zeal Intangible property, and the intangi-
ole tax, therefore, was not yielding the
revenue that it should. In Washington,
however, he declared, the city Is getting
more intangible property on its rolls
than anywhere else in the country, be-
cause Of the ability and astuteness of
the tax assessors Office.
DR.. Page said the method of coll
ectlng the tax on intangibleS usually
constituted an injustice because those
who escaped paying the tax were the
ones best able to pay 1t. He said he
doubted, however, whether an income
AK would produce any more in revenue
'or the District than the present tax on
ntangibles. In response to questions by
Chairman Mapes. DR.. Page expressed
he belief that all lucrative businesses
should pay tax and that the method
II taxation should be based on the
character of the business.
Mr.. Mapes called his attention to the
present method of imposing a per
'ent gross revenue tax on public utility
corporations, banks and trust COM
,anies, and he expressed the opinion
hat an income tax should be confined
o a personal income rather than q
business income.
The business taxes, DR.. Page de-
Jared, should be brought up to date
.ecause the present system Is very old.