The Washington times., 1934-12-26
INCOME Il w
NEW STEP To
EVADE DUTY
VoteIess Citizens Organize
To Resist pet Measure
Of Senator King

question of paying its share of
the cost of the District govern.
ment, Congress is now seeking to
escape responsibility by loading
more taxes on the shoulders of
the already overburdened tax
payers of washington, it was
charged today.
But the voteless taxpayers are
not going to be made the goats
without vigorous struggle, and
plans already are being made to
form an organization to combat
this latest move of Senator Will
liam H. King (DO of Utah, chair
man of the Senate District Com
mittee.
Senator King, it was learned,
plans to force through at the next
session of Congress his pet meas
ure, providing an income tax on
District residents, already stagger-
ing under heavy taxes.
Hold Levy Unnecessary
Such tax, say those who have
made a study of District affairs,
would be unnecessary if the Fed
eral Government would assume
its proper part, meet it's sworn OBJ.
legation.
To understand the local tax
picture, one must go back many
yearS-to 1873 when the present
form Of District Government was
set up. At that time a law was
passed providing that the Fed.
eral Government would pav half
the cost of the local government.
That continued in Satisfac-
tory manner for almost half a
century. Then in 1923 Congress
arbitrarily changed the ratio,
fixing the part the District resi-
dents should pay at go per cent
and the Federal portion as 40
per cent.
And while that law still stands,
Congress several years later de-
cided to disregard it entirely, and
instead of paying its just and
lawful part, decided on the
lump sum" method.
Lump Sum Reduced
Starting at $9,000,0OO. this has
gradually been lowered until for
the last fiscal year it dropped
to $5,7OO,O00. And now it ap-
pears the income tax to be forced
on the District is an attempt to
lower this small lump sum pay
ment.
Strangers ask:
"But why should the Federal
Government contribute any.
thing to the running of
municipal government"
The answer is plain. Wash
ington is the Capital Of the Ma
ton. The United States Govern
ment has here buildings and
property valued at $550,000, 900.
These properties share in the
benefits of city government. They
receive police and fire protection,
the benefits of streets and roads,
Of all municipal conveniences.
And yet the Federal Govern
ment pays not one cent of taxes
for all this. The Government
property represents almost one
third of the assessed value of the
District, and all of it is tax free.
Counting in church and school
property, about 40 per cent of
the District pays no taxes.
So those who own so per cert
of the property in the District
are compelled to bear the tax
burden of 100 per cent. And that
is the reason the per capita as.
Sessed valuation in Washington
is higher than in any city in the
nation save New York.
Even so, the District pays huge
taxes. For the fiscal year 1882,
the latest returns published by
the Bureau of Census of the De
partment of Commerce, the as
seSSed value of Intangible property
in the District was $509, ,408, 1862,
yielding a return at the rate of
IS per $1,000 or $2,547, 900.
Delinquencies Low
At the same time the assessed
value OF taxable real property was
$1,226.691.94S. The tax levy for
this year was $25,253,621, and,
considering business conditions,
the delinquency was very low, re.
turns showing $24,696,857 col.
1ected for the year.
L. A. Carruthers, first vice presi- |
dent of the Federation of Citizens
Association and chairman of the
Fiscal Relations Committee of
that organization, is now prepar.
ing a study of the situation to
be presented at the first meeting
of the year January 6.
James G.. Yaden, president of
the federation, has announced
the organization will fight any at
tempt to impose an income tax
on the citizens of the District.
Mr.. Carruthers stated that in
his opinion there is no necessity
for additional taxes if the Federal
Government will do its rightful
share. The income tax, he as
serted, would shift the burden
from the wealthy to the middle