Evening star., 1931-12-15
Exemptions Are Listed.

mends the enactment of law providing
reasonable tax on income as SubSti-
tute for the present millage tax on in
tangible property and is reporting thisI
bill to put this recommendation intoI
effect"
Accompanying this report, Mr. Mapes
submitted for comparison a table of
income tax rates in various States. Thd[
exemptions from taxation under this
act are as follows:
The income of a single person or
married person not living with husband
or wife up 70 but not in excess of
81 coo.
The income of a married person Iiv-
ing with husband or wife up to but not
in excess of S2,500, provided that if
husband and wife make separate returns
or have separate incomes the exemption
of each shall be 81 ,000
Exemption of $500 for each dependent
child under 10 years of age and for each
additional person who IS actually sup
ported by and entirely dependent upon
the taxpayer for his support.
Dividends received from national
banks and mutual savings banks.
Pensions received from the United
States
All inheritances, devises, bequests and
gifts received during the year.
How Insurance Is Affected.
All insurance received by any person
in payment Of a death claim by any
insurance company, traternal benefit
society or other insurer, except in
Surance paid to a corporation or to a
partnership upon policies on the lives
Of its officers, partners or employees, pro-
vlded that interest on premiums paid
to the insured or accumulated by him
before the maturity of any insurance
policy shall not be exempt from taxa
ton.
Income Of national banks, mutual
savings banks, trust companies, build
ing and loan associations and all re-
Eglous, scientific, benevolent or educa-
tlonal organizations. not organized or
conducted for pecuniary profits.
Interest upon the obligations Of the
United States or its possessions or in
terest upon the obligations Of any State
government or OF any political subdi-
vision thereof.
Frear AnalyZes Estate Tax.
In reporting to the House on his bill
providing for tax on estates, Repre-
sentative Frear said:
I'VE find at the present time there IS
the District of Cohmbia except the
Federal estate tax. Forty-six of the i8
States impose either a tax on inher-
itance or estates and the committee mas
agreed to recommend for passage an
estate tax which in many respects IS
like the Federal estate tag, ard simple
ton.
1T has bed ascertained that at
reasonable rates somewhat lower than
the average of such taxes in the scv-
eral States, the estate tax imposed by
the District Government would p:O-
Guce an annual revenue Of no lcSs
than s75c coo. There is no good rea-
son why such a tax should not be pro-
vided in the DistGct. especially as re
Federal Governments permits a credit
Of all inheritance taxes paid in the
States, or which may be paid in the
District of Columbia, up to 80 per
centum Of the Federal estate taxes.
I'VE believe that the estate tax Is
preferable to the inheritance tax be-
cause of its simplicity. 1t has the ad-
vantage that the tax may be computed
Immediately after the value of the tax
able estate Is determined. This results
in material saving in time and ex-
pense. both to the estate and to the
government that imposes the tax
Furthermore. it is easy for the testator
to determine in advance the total tax
burden upon the estate, and, therefore,
he can carry out exactly his intentions
as to the net amount which the several
beneficiarieS are to receive.
Has Advantage Of Simplicity.
"The estate tax is not tax on en-
tarnriSn a QniHoY0H
Of birth, and the return to the Cow
ernment at the conclusion Of ones life
Of a reasonable share of accumulated
wealth permitted by the laws under
which We live.
THE estate tax has the advantage
of simplicity and the relative speed
with which estates may be settled. We,
therefore. recommend that the bill pro-
vioing for reasonable tax upon the
estates Of descendants within the Dis
trict of Columbia be enacted into law"