Evening star., 1937-01-09

the accommodation Of nonresident
children.
The excessive-cost feature. accord
ing to the plan. would be determined
in this way: Suppose the Board of
Education approved plans for a new
school estimated to cost SO cents
cubic foot, and the Fine Arts Com
mission ordered artistic embellish-
ments that raised the cost to AZ cents
a cubic foot. The Federal Government
then would be required to pay the
excess cost.
Nom Resident Children.
While the committee proposes that
nonresident children be required to
pay tuition in the public schools. it is
possible that before legislation is en-
acted to put that plan into effect,
Congress, against the wishes of the
Board Of Education and the Comn1is-
sioners, might direct the erection Of
a new school near the District line
primarily for the accommodation Of
nonresident children. In that case,
it was said, the Federal Government
might be required. under the plan. TO
pay the major part of the cost on the
theory that Government influence,
which would be Congress in this par
ticular instance. was responsible for
the building. However. If Congress
should require nonresident children
to pay tuition. the Government prob
ably would not bear any part of the
cost of the building il it was arected
in accordance with plans in keeping
within the cost Of q typical District
school.
The committee, however, does not
propose that the Government be re-
quired to pay the personal property
tax on the motor vehicles it owns. or
the 2-cent local tax on gasoline that
it uses on the same theory it applied
to Federal-owned property in the Dis
trict-that Supreme Court decisions
Of long standing have held that in
strumentalitieS of the Federal Govern
ment may not be taxed by any State
or other political subdivision without
express consent by Congress.
On the other hand the committee
does provide for payment by the Fed
eral Government of the license fees
for drivers of its vehicles, the cost of
the license tags for the vehicles as
well as the certificates Of title.
Although the committee said It
found that the property tax and the
tax load in Washington are lower
than in II other cities roughly COM
parable in size, it recommended that
consideration should be given to re-
duction of the importance Of the
property tax as a source Of District
revenue" and suggested the tapping
of potential new sources. The COM
mittee. it was said, did not mean that
real estate taxes should be reduced,
but that there should be wider
spread Of the tax load.
In this connection the committee
in its report said: The general
property tax long has been almost the
sole source Of local tax revenues and
leading source of State revenues.
It follows that the distinctive trend
in recent years has been necessarily
toward diversifcation Of tax sources
toward less exclusive dependence on
property taxation and the develop
ment Of alternative forms of revenue"
Tax System Essentials.
The essential components Of a
modern and equitable tax system, as
indicated by the systems existing
outside the District and by so-called
model tax programs, the committee
declared, appear to be:
l. A property tax upon all tangible
property with provision for classiflca-
tion of property and different rates
of taxation upon distinct classes of
property and possibility for exemp-
ton Of household property up to an
amount not exceeding 1000 full cash
value for each householder.
2. A personal net income tax to be
paid by all persons domiciled in the
taxing jurisdiction, with provision that
income from intangible personal prop
erty be included under the personal
income tax, the intangible personal
property itself being exempt from tax
alton as property. In the National
Tax Association committee on a
model tax system, there is dissent by
certain members upon exemption of
intangible personal property from ad
valorem taxes.
8. A business income tax levied upon
all business carried on within the tax
ing jurisdiction, with provision that
where business Is carried on in sew
eral States the total net income be
allocated on the basis Of three factors,
each having equal weight-tangible
property, wages and salaries, and
sales.
4. An inheritance or estate tax,
with provision for the interstate conf
ties developed in the administration of
these taxes among the different
States.
S. Gasoline and motor vehicle IL
cense taxes, with provision that the
amount be limited and the proceeds
applied to services exclusively asso-
ciated with road and street improve
ments, lighting. maintenance and re-
| pair, and the regulation and protec-
ton of highway traffic.