The Washington times., 1937-03-18
100000 STATE,
CITYW0RKERS
FREE OF TAX
Continued from Page u

5000, 900 who now escape an in
come tax by reason OF constlCu-
tional limitations, paid an aver
age of $50, it would yield a quarter
of a billion dollars in addltlonal
revenue, or a little more than a
third of the total collections from
individual income taxes last year,
amounting to $739, 1885,, ,288.45. 1t
is admitted that it can't be done
at present, and that constitu-
tional amendment would be re-
quired to do it at all.
There is no issue in the Dis
trict. since District employees, be-
ing on Federal territory and sub
ject to Federal jurisdiction, as
we'll as employed by subordin-
ate branch Of the Federal Govern
ment, pay an income tax into the
national treasury like anyone else.
That means, among other
things, that although everyone in
Washington pays an income tax
to the Federal Government, en-
ployes of the States, counties and
municipalities just over the line,
and of all other local govern
ments elsewhere, do not.
Contribute Nothing
These 100000, comprising a
favored class numbering more
than twice the total of those who
annually pay out money to help
keep the government going, con-
tribute nothing toward the main
tenance Of the Army and Navy,
the diplomatic corps, costs of the
Federal judiciary or law-enforce-
ment agencies generally, the pay
of the President of the Unites
States, Congress or the Supreme
Court.
1t means that every man and
woman who does pay an income
tax into the. Federal treasury has
to carry two other persons on his
back, representing this taX-eXempt
group which, under the Constitu-
ton, cannot be taxed.
Nor is there any escape from
this burden unless the Federal con-
Stitution, amended in 1913 to per-
NIT the collection of an income
tax by the national government,
should be amended again to make
the tax applicable to local political
Office holders, ranging from the
governor and judges of New York
State, receiving salaries of from
$4,000 to $25,000 a year, to the
dog-catcher in Oshkosh, Wis, and
the constable in Kalamazoo.
Before that can be done some
member of Congress will have to
take his political life in his hands
and propose such an amendment,
and two-thirds of the States will
have to ratify it through the &C
tion of their legislatures or
through State conventions.
Inasmuch as these are made up
of members Of the privileged non
taxpaying class, and owe their own
political existence to the millions
of votes controlled in greater or
less degree by others in the same
exempt class, only an optimist
with blind faith in the intelli-
gence of the American voters as
a whole would dare predicts its
success.
An amendment making these
100000 people subject to the Fed
eral income tax could succeed only
If enough Americans got mad
enough to do something about 1t.
That's the bare fact. as seen by
students of the subject.
Another Side of Picture
There is another side of the pic
ture, too, in the circumstance that
a million or so Federal employees
are exempt from paying State
income tax. AS many of the States
have income tax laws it makes
them a favored class in their home
States. If the spotlight should
ever be focused on this situation it
would "rile" the folks back home.
If they got their back up high
enough they might insist that Fed
eral employees be brought within
the scope of State income tax laws
as the price of making State,
county and municipal employees
pay a tax to the National Govern
ment-which would have the effect
of reducing the State income taxes
Of those who now pay such a tax.
There is the possibility of trade
in this combination of factors-a
swap which would help the reve-
nues Of State and national govern
ments alike.
One Way to Victory
There is only one way that vic
tory could be guaranteed: If the
Federal income tax base were
broadened to take in heads of
families earning less than $4,000
a year, and single persons earning
less than $1,000-if the existing
exemptions, in other words, were
to be wiped out or greatly reduced
it would so increase the number
of Federal income-tax payers as
to give them a considerable pre-