Evening star., 1932-05-24

for a definite term Of Office shall not be
subject to tax under this act; or
Provided. that all persons receiving
compensation from the United States,
whose principal Office in connection
Herewith is in the District of Column
bia, shall be taxed on such income. In
the case of the Presidents of the United
States and judges of courts of the
United States taking Office after the en-
actment of this act the compensation
received as such shall be included in
gross income
Recommends Reciprocity.
IL This recommends a cause for
reciprocity to the States to avoid re-
quiring a nonresident having income
from sources within the District to be
taxed here and again in the State Of
his domicile.
13. This deals with allowance for net
losses Of former years. Pointing out
that a corporation might have large
earnings one year that would be wiped
out by losses in the succeeding year, or
vice versa. the bureau points out that
the Federal law Of 1923 allows tax
payer to recoup losses over two years
and suggests an amendment along this
line as being equitable.
District corporations The bureau ex-
presses the belief that the House bill
would exempt from tax here DIVIDENDS
from national banks and mutual saw
| ings banks Throughout the United States
and suggests an amendment to confine
the exemption to dividends from
banks, trust companies and building
and loan associations in the District.
10. Under the heading of inclusion
OF life insurance and gross income, the
bureau suggests that amounts received
under life insurance policies be ex-
empted whether the beneficiary is ar, in
dividual or business firm.
Is. This recommends uniformity of
period for paying tax to conform with
the existing practice here.
Filing Of Returns.
IT. Filing Of returns. The bureau
points out that under the House bill
every resident Of the District would be
required to file a return whether or
not he had any net income. Follow
ing this literally, more than 100000
persons would annually report through
returns, though less than 10000 would
pay any tax. The bureau says this
would increase the cost of administra-
tion without serving any useful pur-
pose, and suggests that returns be lin
tied to individuals with a net income
for the taxable year of $1,000 or over
if single, every individual having a net
income of s2,500 If married and living
with husband or wife, every individual
having gross income Of 5000 regard
less Of the amount Of net income, every
corporation, estate, joint stock COM
pany, partnership or association Or
ganized for profit Except those spe-
cifically exempted).
18. This recommends a three-year
statute of limitations, beyond which
the Government will not assess addi-
tlonal taxes, nor the taxpayer claim
refunds.
10. This recommendation would en-
| able the assessor to make rules and
regulations governing the keeping of
records of income by taxpayers.
20. This would outline in more detail
the time within which appeals could be
heard by the Board of Tax Appeals.
81. This last recommendation pro-
vides that If the income tax is enacted
! as substitute for the intangible tax,
that the latter be repealed as of jan
uary l. 1888, and that the assessment
made under this section on intangible
personal property shall be at one-half
the annual rate to cover only the period
from July l, 1882, to December 81. 1892
Early History Reviewed.
After reviewing the early history of
income taxation in various parts of the
world, the bureau said that early in
the nineteenth century agitation arose
in the United States for national tax
on incomes. 1t was not until 1862, how
ever, that such tax was levied to meet
demands Of the Civil War. Defects of
administration caused its repeal 10
years later, the report explains
In 1894 this form Of tax was revived
and applied to individuals and cor
porations, but the next year, the bureau
points out, the act was declared uncon-