Evening star., 1932-03-30

silent as to the retroactive feature, but
that when the States began passing re-
troactive clauses the Federal Govern
ment interposed no objection within a
limit of three years.
While witnesses were explaining the
operation of the 80 per cent credit al
lowed by the United States, Senator
King of Utah declared that when the
new Federal tax bill being written in
the House reaches the Senate an effort
will be made to do away with the dis
proportionate credit" Asked if he
would take it away entirely, Senator
King said he would favor lowering the
rates in the Federal law and make no
credit to the States.
Senator King also declared member
of Congress told him he knew of sew
eral instances where persons maintained
nominal residence in the District for
the purpose of avoiding estate tax and
income tax in the States. Senator
Copeland brought out by questioning
Mr.. Murphy that an individual would
not escape the Federal estate tax by
living in Washington, and that II a
person came from a State that collects
the 80 per cent credit, the effect of liv-
ing in Washington would be that the
Federal Government would get the 80
per cent
Lowers Collection Total.
District Assessor William P. Richards
told the committee he had made more
conservative estimate of the probable
District collection under the pending
estate bill, placing it at 100000. The
House estimated S750,000.
Asked by Chairman Capper II he
thought the District would be justified
in increasing its revenues by this
method, Richards replied affirmatively.
He said he was guided in that opinion
by the fact that it is being done else
where.
Senator Capper then asked If the
District is facing an increase in its
tax levy. Richards said, in his opinion,
the District faces one of two things,
either an increase in its present tax
levy or an increase in the Federal
share.
Theodore Cogswell, register of wills,
advocated an amendment to the sec
ton which would require 10 days
notice to the Commissioners before the
property of a decedent could be trans
ferred The same section would re-
quire retention Of property sufficient
to cover any tax that might be found
Que. Cogswell argued these require
ments would be unnecessary and Cor
poration Counsel Bride indicated he
would have a change to suggest in
| this section. 1t was pointed out that
executors or administrators are under
bond which would cover the question
of taxes.
Favors Estate Tax.
Asked by the chairman for his opin-
ion of the estate tax Mr.. Cogswell said
that if the District must be further
taxed, he regarded an estate tax as a
fairer method than an increase in the
general property tax.
Mr.. Carruthers, speaking for the
Fiscal Relations Committee of the citi-
2ens' federation, in urging brief, SIM
pie bill that would give the District the
benefit of the 30 per cent credit allowed
on Federal estate taxes, and no more
than that, recommended the law re-
Gently passed by Alabama.
I'VE feel" said Mr.. Carruthers, that
! Congress ought to be as fair with the
District as the States are with their own
people"
He added that States that have re-
Gently passed local laws on this sub
iect have had in mind getting only
the 80 per cent credit. Senator Capper
suggested that he draft a proposal for
the consideration of the committee later.
Senators King of Utah and Gore of
Oklahoma indicated they thought the
| local bill should not be reported to the
Senate until after the Federal tax bill
is disposed Of 1t is not expected the
committee will act on any of the local
tax measures until the hearings on the
| program as q whole have been COM
pleted.