Evening star., 1937-04-21

| the District OF Columbia proposed
rates running up to Is per cent. II
the net estate in Maryland is less than
$500 it is entirely exempt
Maryland has its 80 per cent pro-
vision, to take up any slack which
may be left between what is assessed
by its death taxes and the 80 per cent
credit allowed by the 1925 revenue
| act.
to IS Per Cent in Virginia.
Nearby Virginias rates are split
among four classes of inheritance
tax, and run from l per cent to a
maximum of Is per cent
In class A, including widow or wild
over, the exemption is $4,000 with
rates from l per cent on the first
$25,000, and running up to S per cent
in excess of $l,O0O,0O0
In class B, including brothers, sisters,
nepheWS, and nieces, the exemption
is $4,000, with tax running from 2
per cent on the first S25,000 up to
10 per cent on over million.
Glass c, including grand-nephews,
grand-nieces, and other persons, firms
and corporations, with an exemption
of 81 900 only, the rates run from S
per cent on the first $25,000 up to IS
per cent on over million.
Glass D exempts bequests to gov
ernmental religious, charitable and
similar institutions
Virginia also has the estate tax
provision of 80 per cent just in case
there is anything to claim, in the
Federal credit
At the present time the District Of
Columbia and Nevada are the only
two political entities In the United
States proper without an estate tax
of any kind. Most of the States now
incorporate the 80 per cent provision
somewhere in their tax structure.
Maryland hesitated long time, but
finally adopted the 80 per cent pro-
vision on top of its collateral in
heritance act New Jersey is the
most recent State to adopt the 80
per cent provision.
Should the District of Columbia act
provide merely for collecting the 80
per cent of the estate tax available,
it would be following in such respect
the practice already widespread
throughout the country, accepted by
the Federal Government as one means
of preventing harmful duplication of
death taxes and recognized as fair
tax, easy of administration, simple to
compute.
Can Eliminate Heavy Burden.
Such a provision alone without
tax rate structure would bring sub
stantial revenue to the District of Co.
lumbia, without adding additional
burdens to the already heavily taxed
estates. The Federal death levy now
is admittedly heavy, running up to as
high as 10 per cent on all estates
above s5O,o00,00O.
The proposed new District OF Co.
lumbia estate tax is estimated to yield
about s750.000 This is purely an esti-
mate, more difficult to guess than
other taxes, because revenue from
death taxes depends entirely on who
dies during year.
Latest figures on the estate taxes
paid to the Federal Government from
the District of Columbia during the
fiscal year ending June 80, 1895, were:
S1,79l, ,0l4.97. This, however, includes
the super-estate tax. on which no 80
per cent credit is given. For the CAL
endar year 1885, figures from the
Bureau Of Internal Revenue show that
total estate taxes due on returns filed
were $1,940,0O0 But the tax COM
puted on the 1926 base was only $51l,-
900 of which 80 per cent would be
s408,000, which could have been COL
lected by the District under a simple
80 per cent provision.
Briefly, the new D. C. estate tax in
cludes not only the 80 per cent provi-
sion, but set of rates for net estate
as follows:
Not in excess Of $50 900. l per cent.
Over $4,000 and not exceeding
100000, per cent.
Over 100000 and not exceeding
5000, 900, per cent
Over 100000 and not exceeding
100000, 4 per cent.
Over 100000 and not exceeding
100000, per cent.
Over s500,O0O and not exceeding
$750,000, 6 per cent.
Over s75O,OOO and not exceeding
$1,250,000, per cent.
Over sl,250,000 and not exceeding
100000. 8 per cent.
Over $2,000,000 and not exceeding
S5OOO,o0O, 10 per cent.
Over $5,000,000, IS per cent.
Exemptions on Gross Estate.
The Commissioners of the District
Of Columbia are given supervision of
the enforcement of the act.
Exemptions from the tax are based
on the relationship of the beneficiary,
but the exemptions are taken from the
gross estate. For instance, the act
provides there shall be deducted prop
erty having clear market value" of
$4,000 transferred to the widow;
$4,000 to the husband, $4,000 to a
brother or sister, $4,000 to any
lineal ancestor or child.
In case no property passes to these
types of beneflciaries, or If the value
OF the property passing to such bene-
ficiaries is less than $1,000, the act
exempts property up to $1,000.
(Another article on the estate tar