Evening star., 1932-03-15
The District Estate Tax.


inheritance tax as a method of raising
q. revenue, the State Legislatures hav,
taken cognizance of the fact thas while
this field in taxation has to some
extent been taken over by the Federal
Government, the Federal Government
has left the greater portion of it
eighty per cent-to be cultivated for
their own use by the States. In other
words, the Federal Government allows
credit, for taxes paid to the States, up
to eighty per cent of the total tax that
1t collects.
In framing their own estate or in
heritance tax laws an increasing num-
Der of the States have exercised the
greatest precaution against taxing an
estate more than the eighty per cent al
lowed in credit under the Federal law.
They know that an estate will pay a
certain tax to the Federal Government,
regardless of whether the State imposes
a tax. The State Legislatures, there
fore, have been most anxious to avoid
placing an extra burden on the taxpay-
er; their aim is merely to collect eighty
per cent of the Federal tax in man.
! ner that will divide the total Federal
tax on an 1920 basis with the Federal
Government.
In considering the estate tax for the
District of Columbia passed by the
House Congress for the moment should
step out OF its role as the National Leg
/, islature and assume the role Of the
State Legislature for the District Of
a Columbia. 1t has already acted as the
National Legislature in enacting the
Federal estate tax. Now it must be
guided by jealous regard for the pro-
(, lection of its voteless constituents, the
people of the District in adopting what
corresponds to a State law for this
Jurisdiction. 1t should be as careful to
avoid an increase in the total bur-
den of inheritance or estate taxation
rs the States have been. Its aim should
be to collect, for the District the full
amount Of the credit allowed un-
der the Federal law, but nothing be-
yond that.
q In making its report on the estate
tax bill for the District of Columbia al
ready passed by the House the Bureau
Of Efficiency points out what it con-
siders to be twelve weaknesses that
should be corrected by amendment.
Some of these concern administrative
!, matters, and others are designed to
correct obvious inequities and of course
the Senate committee will give them
due consideration. The report of the
Bureau of Efieiencys recommendations
appears elsewhere in The Star today.
But, as always, the important task for
Congress concerns the consideration Of
49, equities involved in this legislation.
! The District lacks the distinct and
separate protection of its rights that
would lie in Legislature directly
chosen by the taxpayers here and re-
sponsive to their wishes The same
Congress that has imposed the Federal
estate taxation to collect more revenue
:, for the Federal Government is to con-
= slider the imposition Of identical taxa
- tion to collect more revenue for its
+ ward. the District of Columbia. Having
acted for the best interests Of the
people Of the Nation-including the
J.. District-in imposing the Federal es-
tate tax, Congress must now act for
the best interests OF the people Of the
District in imposing this local estate
law, setting up for them the same
safeguards against excessive taxation
that the State Legislatures have Wig
orously interposed in behalf of their
constituents.