Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-05-31
Local Government Could COL
IeCt 80 Per Cent of
Federal Levy.
STUDY OF SUBJECT SEEN
IN FORTHCOMING INQUIRY
Bingham Suggests That Civic Or
CARNATIONS Prepare to Present
Definite Views.
BY J. A. O'LEARY.

The District government would collect
about 100000 year of revenue which
Uncle Sam now gets in Washington
through the Federal estate tax, II the
city had local inheritance tax, IT was
estimated yesterday by municipal on
Gals, discussing recent indications that
this IL one OF the new forms of local
revenue likely to be considered in the
forthcoming Congre ssional fiscal rela-
ttons inquiry.
The District assessors once, 1t was
learned, has already transmitted to the
House group conducting the investiga-
ton tentative outlines Of bills dealing
both with inheritance and income taxes
for the District This step was taken.
it was explained. at the request OF the
congressional group and local officials
have not disclosed or commented on the
nature Of the information submitted.
Another development yesterday was a
suggestion advanced by Senator Bing-
ham, Republican. of Connecticut. chair
man Of the Senate Subcommittee on
District appropriations, that neighbor-
hood and city-wide civic organizations
should give careful study and thought to
the question of how they would prefer
to be taxed. so as to be prepared to
give the ncXt Congress an expression of
the views OF as many Of the local tax
payers Is possible.
States Use Present Law.
The prospect that with local inher-
itanc, tax the District would get in the
ncighborhood OF half a million dollars
1 year. which now goes to the United
States through the Federal inheritance
tax. grows out of the provision of Law
which says that the tax imposed on an
estate by tbs Federal Government shall
be credited with sny similar tax paid
TO State or the District of Columbia.
but not to exceed 80 per cent OF the
Fe eral levy.
According to officials of the Internal
Revenue Bureau. most of the larger
States have arranged their State stat
utes so that they get the full credit
of 80 per cent of the Federal tax, and
the estimate of 100000 a year as the
probable amount to which the District
would bensfit in revenue collected is
based on getting the full credit here
also.
OF course, the amount of local tax
how 1t would be levied. the exemptions
to be allowed and similar details are ali
matters still in the speculative field
since the congressional inquiry has not
yet reached the stage of conclusions or
recommendations. In view, however, of
the indications that this is one of the
new sources being looked to in the
event it should be decided to re adjust
the city's tax burden as between real
estate and othsr forms of taxation. an
insight into the provisions of the Fed
eral estate law furnishes interesting
food for thought.
Attracted by Prospect.
That the District government would
benefit through local inheritance tax
by receiving so per cent of the Federal
inheritance taxes already being collect
ed in Washington, is certain and Some
local officials who have been studying
taxation questions do not conceal the
fact that they have bsen attracted
somewhat by this prospect.
How much more individual taxpay-
erS in the District would have to pay
on inheritances. however, Is a less Ger
tain factor and would depend to a large
extent on the amount of exemption
that might be decided on in writing a
local statute, as we'll as on the rates
adopted locally.
To begin with the Federal law. which
now operates and will continue to
operate in Washington. allows an e%-
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