Evening star., 1930-12-12
Revising Local Tax Laws.

The House resolution directing the
present fiscal relations inquiry spe-
officially empowered the special COM
mittee to Investigate fully the vari-
Gus sources of revenue of the District
OF Columbia and to recommend to the
House such new forms of taxation and
sources of revenue or such changes in
the existing forms of taxation and
sources of revenue as to them may
seem just and fair" In pursuance of
this line of inquiry the committee has
received suggestions from DR.. Thomas
Walker Page, member of the Tariff
Commission and an economist Of
standing
While DR.. Page suggests certain sub
stitute forms of taxation for the Dis
tEict of Columbia, such as the income
tax and the inheritance tax, his en-
phasis upon the fact that there should
be no "additional' burdens of taxation
thrown upon the already adequately
taxed District of Columbia will, of
course, be carefully noted by the COM
mittee.
The Bureau of Efficiency report again
shows the fact that Washington's tax
burden is already relatively high. Dr.
Page states that the tax burden here
Is high All the expert testimony so
far introduced before the committee
shows that taxes in Washington are
high; that the people of the District
are not undertaxed And an equitable
weighing of the facts will show that the
local community suffers more from over
taxation than from undertaxation.
If Congress, in its exclusive legisla-
tive power over the District, sees fit to
revise the system of taxation here, such
q revision should be attempted for the
sole purpose of guaranteeing fair and
equal appoftionment of the tax burden.
It should not be undertaken in order
TO pry more taxes out of this already
heavily contributing community.
Experience has amply shown the
dangers to the local community that
result when congressional committees
undertake tax tinkering in the District
of Columbia. Substitute taxes become
additional taxes. The safeguarding I'm
lieu of" vanishes with quick stroke Of
the pen and additional dollars are
squeezed from the unrepresented tax
payers.
The primary consideration before the
special House committee is the adequacy
Of the Federal contribution, not the
adequacy Of the local tax burden. Con-
sideration of the one, however, natu-
rally. and in this case specifically, IN
wolves consideration of the other. But
It was not the failure of the local COM
munity to contribute its share to ex-
penses of the Federal City that brought
about the investigation. It was the
demonstrated failure of the Federal
Government to contribute its just share.
and the resulting legislative tangles re-
sulting from inability of the two houses
Of Congress to agree as to what that
contribution should be, that brought
about the investigation.
The House committee must not be
enticed away from the main trial. The
same expert testimony that has shown
the adequacy of the local tax burden
has pointed out in dollars and cents the
tnadequacy of the Federal contribution
That contribution should first be in
creased. The committee should recon-
mend or attempt TO recommend some
formula that will guarantee a Federal
contribution representative of the Fed
eral obligation. 1t should bend its efforts
10 establishing. or re-establshing, rela-
tionship between the local community
and the Federal Government that will
by reason Of its fairness prevent the
annual repetitions of controversy that
results now from unfairness, short
sightedness and shirking reputation Of
the law by the law-making Congress.
After these things have been settled
the committee may with propriety un-
dertake the thorough study Of the tax
laws here that must precede any in
telligent revision.
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