Evening star., 1935-09-29

tlnled. Is eC0n0mlC2lly sound. The
gasoline tax Is one of the few sources
of revenue that lends itself readily TO
this form Of levy. 1t is generally
conceded that it is one of the most
Just and equitable taxes imposed and
certainly this argument is logical as
long as the tax revenues are used for
the maintenance. operation and con-
struction of highways To divert these
taxes to other purposes would be dis
crlminatory, for the reason that they
are in the form of a selective sales
tax against a single necessary COM
modify that should not be classed as
either luxury or nuisance. The pres
ent gasoline tax rate will produce
sufficient revenue for the complete
highway program and no serious con-
sideration should be given to any con-
templated increase in rates designed
to produce additional revenue or to
bring the tax rate to level that now
prevails in nearby States"
The present method of taxing auto
mobiles in the District differs from
many of the States but is conceded to
be the most just and equitable found
in any taxing jurisdiction.
The tax cannot be evaded. is easy
and inexpensive to collect and is based
on ability to pay. and it would un-
doubtedly be backward step in tax
alton to abolish the general property
tax in the value of the automobile and
substitute a weight tax" The latter
is not based on ability to pay nor on
benefits derived and would result in
shifting the tax from the well-to-do
to the needy. he said.
The automobile forced the conStruc-
ton of improved highways, and it is
only natural that auto users should
pay for these Improvements. The
first special taxes were based on horse
power and weight, and not until 1919
did the gasoline tax appear. The gas
oline tax should have substituted for
the weight or horsepower tax, but in
most States. because of the need of
highway revenues, the weight and
horsepower tax has been retained and
the gasoline tax increased.
Reason for Surplus.
Surplus funds in the District ac-
cumulate because the budget is pre-
pared with consideration for the an
tlclpated revenue, and when the
budget is submitted to the Budget
Bureau and Congress the result is that
estimated expenditures are reduced,
while in many instances the revenue
measures designed to supply the
needed funds are left in full force.
ANY budget" Carruthers believes,
which takes from the taxpayer an
amount in excess of the needs for
fiscal year is just as much an unbal-
anced budget as one that does not
provide sufficient amount of revenue
to balance expenditures"
The attempt to compare local tax
rates with those in effect in the
States is not possible because prop
erty in the District is by both law and
practice assessed at 100 per cent of
true value, while the ratio of as
sessed valuation to true value is. on
the average, approximately so per cent
for other cities.
The Federation of Citizens Asso-
Citations has recommended legislation
which would permit the tax to be
levied on so per cent of the true
value. In order to produce an equal
amount of revenue. the rate would
necessarily be doubled. but without
any increase in taxes to be met by
the taxpayer. 1t is believed this
would result in more equitable and
just appropriation by the Federal
Government for the reason that many
members of Congress insist that the
local taxpayer must bear his fair
share. and in determining this So
called fair share they compare the
tax rate in the City of Washington
with the tax rates in their home
communities, when in reality the
rates are not comparable.
Unfair Shifting Opposed.
"The federation further believes
that it is unfair to attempt to shift
the entire cost of local government
to the city. The Federal Government
Is constantly acquiring taxable prop
erty, thereby reducing the taxable
valuation on which taxes may be
levied. More than 80 per cent of
the real estate values in the City Of
Washington Is owned by the Federal
Government and more than 40 per
cent of the real property values is
exempt from taxation. The Federal
Government alone owns approx
mately s55000o,o00 Of real and tangi-
BILE property. II this property were
subject to the same rate Of taxation