Evening star. [volume] (Washington, D.C.) 1854-1972, 1935-04-19
Mr.. Richards Tax Comparisons.

There is added interest in Assessor
Richards comparisons of tax burdens
described in detail elsewhere in to-
days Star, because of their apparent
contradiction of the recent Treasury
report on comparative tax burdens.
There is. however, no contradiction
in facts. The only contradiction is in
conclusions as to tax burdens, due to
difference in methods of comparison
Mr.. Richards figures (see table &C.
companying todays article) do not
differ materially from the Treasury
figures as far as tax rates are con-
cerned. Both comparisons elucidate
the obvious fact that Washington
tax rate is one of the lowest in the
country.
The difference is that Mr.. Rich
aros, because of personal, first-hand
experience over many years and ir
accordance with prevailing opinion
places no importance on the tax rate
adjusted" or non-adjusted, as ar
index to the tax burden.
He follows the practice of the Cen.
sus Bureau and others in expressing
tax burden comparisons in per capita
figures. based on actual tax levies ano
tax payments. The basic figures used
in such comparisons are thus actual
not estimated or guessed-at ratios OF
assessed to true value, the accuracy OF
inaccuracy of which it is impossible
without prolonged and typical COM
parsons between assessments and &C.
tual sales, to determine.
No one has to guess at population
as determined by the census, or of tax
levies, as shown by the tax collector
receipts. And as it is a well-knowr
and accepted principle that all taxes
are passed along and reflected in
prices, rents, etc, paid by the whole
community, reductions of tax totals
and populations to per capitas gives
logical expression to comparisons of
tax burdens, especially when the
comparisons are between cities of
varying population.
The result of one of Mr.. Richards
comparisons is to show that even when
tax levy figures of the cities are swelled
by State taxes and interest service
two elements which in equity should
be deducted in comparisons with
Washington-the per capita tax levy
here Is approximately equal to or in
excess of nine of the nineteen cities
with which Washington is compared.
When the comparison is between city
levies alone-debt service still in
NEUTRALITY-SUSPICIOUS. per capita ap-
proXimates or exceeds that of thirteen
of the cities with which it is compared.
Such findings assuredly refute con-
clusions-reached with faulty and
unreliable yardstick of measurement
that Washington is undertaxed.
Especially interesting is Mr.. Rich
ards showing of how closely his
assessments compare with actual sales
values over a period of years and in
every portion of the city. This show
ing demonstrates once again the
generally acknowledged fact that
Washington is the most thoroughly
assessed city in the country. And
until Mr.. Richards careful comparison
Of sales and assessments over a period
Of years is duplicated in other cities
no reliance is to be placed in unofficial
estimates as to what such ratios, in
somebody's opinion, may be.
When such guessed-at ratios are
used to adjust" the prevailing high
tax rates of other cities in comparison
with Washington's low tax rate and
demonstrate SO to 100 per cent as
sessment, the comparison is unfair be-
cause the yardstick is unreliable.
When actual figures of tax levy,
expressed in per capitas for cities
of varying population or in totals
for cities of comparable popula-
ton and environment, are used
Washington's tax burden is shown
to be relatively high. and when
equitable considerations are applied to
the comparison is shown to be excep-
tionally high.