Evening star. [volume] (Washington, D.C.) 1854-1972, 1937-04-19

incomes Of $1,000 or over for sir
married persons Would exempt
officials elected or appointed for /.
within definition Of act.
This is the fourth and final dr.
ticle OF series OF four on the local
income tar. Yesterdays article
discussed some OF the complica-
tons in collecting OF the local in
come tar resulting from conditions
peculiar to the District of Column
bid. Todays article discusses pro-
posed District OF Columbia rates.
" HE pending District Of Columbia
income tax bill is designed as .
substitute for the Intangible tax
L law now in effect and Is based
on . rate structure taxing both ind1-
viduals and corporations.
These rates run from to per cent
for individuals on graduated scale.
Corporations are taxed S per cent.
Generally the bill would levy =
heavier burden on both individuals
and corporations than most Of the
State income taxes.
Estimates are that it would produce
a revenue of about $4,000, 900, SUBJ
stantially higher than the intangible
tax, which has been producing more
t9hn 100000 annually since 1922.
Last year this tax produced $2,l47, 900.
Proponents of the income tax claim
that, despite the fact 1t Is perfect
example of double taxation, 1t is a
fair tax, similar to that now levied by
"a States of the Union, and would be
very productive. BY taking tax
from incomes which already are taxed
by the Federal Government it Is really
double taxation of the most direct sort.
No credit is allowed locally for Fed
eral income tax payments.
Higher Than Virginia Law.
The rate structure in the new Dis
trict income tax law IS higher than
that of nearby Virginia and is higher
than most Of the States, but Of course
is lower than that Of the Federal Gov
eminent
Exemptions include $1,000 for 4
single person, which is the same as
that in the Federal and Virginia State
income taxes; $4,000 for q married
person living with husband or wife, or
a single person who is the head Of
family, which is the same as the Fed
eral law but higher than the $4,000
exemption in Virginia. The exemption
for dependents under Is years Of age
is 5000 each. figure which falls half
way between the $500 in the Federal
and 5000 in the Virginia laws. If 4
husband and wife make separate re-
turns, or have separate incomes, the
exemption for each in the District
would be $1,000, total OF only $4,000,
as contrasted with $4,000 allowed by
Federal exemption for such q case.
The Collins bill is the latest Of sew
eral District Of Columbia income tax
measures which have been introduced
in Congress over period Of several
years. The new bill is more like the
recent Mapes bill but varies in some
particulars from that measure.
VINO Files Returns.
Returns must be filed by individuals
having net income for the taxable
year" Of $1,000 or over If single, or If
married and not living with husband
or wife, and by every individual hav-
ing net income of $4,000 or over If
married and living with husband or
wife, and by every individual having
a gross income for the taxable year of
$4,000 or over, regardless Of the
amount Of his net income.
The tax structure provides as fol-
lows:
On net income not over $4,000, 4
tax Of per cent.
On net income between $4,000 and
$1,000, tax Of II per cent.
On net income between $4,000 and
$4,000, a tax Of per cent.
On net income between SIC, 900 and
SIS, 900, tax Of az per cent.
Between $4,000 and $4,000, \ tax
Of per cent.
Between $4,000 and SIC, 1000, tax of
81 per cent.
Between $4,000 and $4,000, tax of
4 per cent.
And over $4,000, tax Of S per cent.
This compares to the following in
dividual income tax by the State Of
Virginia.
On net income not over $1,000, tax
of III per cent
Between $4,000 and $4,000, ~ per
cent.
All over $4,000, 3 per cent.
Rates-Federal and Local.
The Federal individual income tax
starts at per cent for the normal
tax on all over $1,000 net for single
persons and $4,000 for married, and
then jumps to "surtax" on all net
income over $4,000. This surtax is
on graduated scale, on top of the 4
per cent, which is figured first on the
total income. The surtax runs from
4 per cent up to IS per cent on all net
income over 100000 a year. This
makes the total top rate Of both nor
NAL and surtax 70 per cent.
A member Of Congress living In
NAS4AlAh WOulU lllc Ills income tax IN
March for the Federal Government
and escape both the District of Co.
lumbia or Virginia tax.
A Federal employe not exempt or
an employe Of private business living
in the District of Columbia having a
net income Of $1,000 before personal
exemption would first file his Federal
income tax return in March, taking
a personal exemption of $4,000 for
being married and $500 for q child.
He would thus pay tax at 1 per cent
on $4,000 Of $84.
This same employe in April then
would file his return with the District
OF Columbia, taking of $4,000 for be-
Ing married and only $500 for his one
child. Under the graduated District
tax rate he would pay on the remain-
ing $4,000 a tax Of $50.
D. c. Credit on Va. Tax.
IT this same $1,000 employe worked
here and lived in virginia. he would