Evening star., 1932-03-30
Citizens Oppose Increases as
Way for U. S. to Cut
60-40 Ratio.
OPPOSITION HOLDS FIRE
FOR FINAL MEASURE
Proposal to End Lump Sum Agree.
ment to Be Target-Revenue
Raising Is Passed Over.


are inseparably linked to the problem
of fiscal relations between the Fedora
and District government and should
be weighed by the effect they woulc
have on an equitable settlement of tha
problem was indicated clearly by wit
nesses before the Senate District Com
mittee hearing on the estate tax bill
yesterday afternoon.
Spokesman for local organization
who appeared at this opening hearing
on the Mapes bills did not oppose ar
estate tax as source of revenue, but
stressed the point that new taxes shoulC
not be enacted merely as a means OF
reducing the Federal Governments
share of the expenses of the Nationa.
Capital
The Senate District Committee will
hold its hearing on the motor vehicle
weight tax next Tuesday, April 5. at
2:30 o'clock in the afternoon. This
gasoline tax increase bill will be taken
up at 2:30 o'clock on the afternoon OF
Friday, April 8.
Center on Rates Bill.
The final bill in the program of the
Mapes House Committee deals with the
basic question of fiscal relations by
seeking to repeal the substantive law
establishing the 60-40 ratio of expense
between the District and Federal Gov
ernments. Chairman Capper assured
those who appeared at yesterdays hear
ing that when this fiscal relations bill
is reached they will be given a full
opportunity to discuss the effect of the
tax program as whole on the tnanc-
ing of the city. For this reason yes
terday's hearing was confined to con-
sideration of the detailed provisions OF
the first bill, to levy local tax on the
transfer of estates.
The viewpoint of the local CON-
munity toward the tax program was
indicated by L. A. Carruthers, spokes-
man for the Federation OF Citizens AS
sociations, who declared the federation
is opposed to any increase in taxation
or new forms of taxation having Tor
their object a reduced Federal appro-
priation" toward the District.
Wants Lower Limit.
Mr., Carruthers advocated brief es-
tate tax law which would enable the
District to collect the 80 per cent credit
on Federal estate taxes which the
United States allows to the States hav-
ing similar local laws on the subject
instead of the pending House bill II
had been shown by previous testimony
that the pending House bill would col
lect locally more than 80 per cent OF
the present Federal tax.
f1r tho shin Ofnf1 Cham
Der of Commerce, Raymond F. Garrity
told Senator Capper the chamber IA
vors a general inquiry into the whole
subject of taxation and fiscal relations
and has prepared an elaborate report
from that standpoint which 1t will
present later. Chairman Capper said
the committee would be glad to have
that report when the fiscal relations
measure is reached.
Mr.. Garrity said that, as a general
proposition, the chamber is not opposed
to an estate tax. but If it is to be passed
lust to raise $750,000 and then take
that amount away from the Federal
contribution nothing would be accom-
pnShed, he said.
Statement Prepared.
Evan H. Tucker, president Of the
Northeast Washington Citizens Asso.
citation, said his organization is part
OF the Citizens Joint Committee on F1S-
cal Relations. He said the committee
will have statement to present later
and that his association would present
its views through that committee.
The Mapes Committee, in drafting the
four tax increase bills, estimated they
would produce approximately S4000,00C
annually, and at the same time the
House Committee recommended that
the Federal lump sum appropriation
toward District expenses be reduced
from $4,000, 900 to $500 900.
Thomas F. Murphy assistant chief oi
the Bureau of Efficiency, which il
studying all of the Mapes bills for tht
Senate Committee, explained the Il
amendments the bureau deems neces.
sary in the estate tax measure to make l
it more equitable and to clarity 1t. Tht
bureau favored the bill with the pro.
posed changes.
The House bill, he said, provides fol
a graduated rate of tax, ranging from
! per cent on estates not in excess
OF $4,000 up to is per cent ovel
$5,000,000.
Exceed 80 Per Cent.
In response to questions by Senator
Capper Murphy showed the House bill
to the District treasury of 80 per cent
of the Federal estate tax already col
lected here. There are two ways II
which the MapeS bill would raise more
than the 80 per cent credit on Fedora
taxes-firSt, because it would collec
some tax locally from estates under
$l00 900, which is the figure at which
the Federal law begins to operate; sec.
ond, the sca.e of rates in the pending
bill are such as to collect slightly il
excess Of the 80 per cent credit" h;
said.
1t is estimated that the Mapes estatt
bill would raise $750,000 of Distric
revenue of which 100000 would COM
from the Federal Government through
the 80 per cent credit.
Early in the hearing Senator Cope
land Of New York predicted that an,
additional revenue accruing to the Dis
trict through this bill would be fol
lowed Immediately by a reduction o
that amount from the Federal contri
button. This led him to assert that tn
District, as a city, would not benefi
in the last analysis" from having tn
estate tax law.
In making up the next budget the
would undoubtedly deduct that $780, 90
from the lump sum-" said Senator Cope
land.
State Laws Cited.
It was brought out in the testimon
that since Congress in 1926 agreed I
give a credit of 80 per cent on Fedora
estate taxes for similar taxes impose
in the States, many of the States hav
passed laws designed to take that credi
and also have included retroactiv
clauses.
Mr.. Murphy said the Federal law