Evening star., 1937-06-06
Still Defective.

4Ac 1AIltdoGAC pIOpOoAtloll VI AIdhAAS
the provisions Of the proposed local in
come tax retroactive, covering income
already earned and spent in 1896, has
been abandoned. Qualification over that
fact is somewhat modified, however, by
astonishment that such scheme should
have been seriously entertained even
temporarily and by realization that the
remaining parts of the tax program, as
shaped now, are far from sound or
equitable.
1t will be a mistake to impose local
income tax on the District, especially
with the relatively high initial rates now
considered. The result-under the con-
ditions peculiar to the District of Co.
lumbia, with it's large transient popula-
ton Of Federal employees and its large
suburbanite population owing original
tax allegiance to Maryland and to Vir-
ginia-will be an aggravation Of existing
evils of duplicate taxation with the addi-
ton of many odd tax inequities and COM
plicated administrative difficulties, to
which no thorough examination has been
given.
II the Congressman exempt themselves
from the tax-as they are very apt to
do-the inequities already threatened
will be increased and there will remain
no practical form of restraint on an
alien taxing body in future income tax
rate boosting. The income tax, under
such conditions is peculiarly susceptible
Of abuse The tendency will be to in
crease the rates and to lower the exemp-
tions as new revenues for Capital City
Improvement become necessary, regard
less Of the source Of the demands or the
nature of the needs for such new reve-
nues. The only safeguard against that
abuse lies in the ballot, and the people
here are helpless The local income tax
would be best abandoned.
But, If retained at all, the income tax
should be substituted for the tax on in
tangibles and the latter tax repealed out
right. The local income tax was never
proposed in the past as anything but
substitute for the tax on intangibles. The
fact that it is being seriously considered
now as merely an additional tax, with
retention of a more strictly enforced tax
on intangibles, indicates total lack of
consideration for the local taxpayer.
That is plain enough. But confusion
is added to the picture by the guesses
hazarded by the tax boosters as to what
this proposed double dose OF taxes will
yield in new revenue. The original
Collins income tax bill-neatly exempt
ing members of Congress and higher
salaried officials OF the Federal Govern
ment-was to yield an estimated $6000.-
600 in revenue as substitute for the
intangibles tax.
Now, with such exemptions temporarily
removed and the intangibles tax retained
and strengthened, there is talk to the
both taxes, when reciprocal credits are
allowed, would be less than originally
contemplated in the substitution of an
income for an intangibles tax.
That is not merely nonsense, but dan
gerous nonsense. 1t indicates once again
that those In charge Of preparing the
tax program have no clear idea of the
amount of additional taxation they are
preparing to shove on the District. Such
a position is, of course, indefensible.
The weight tax on, automobiles offers
denly changed to additional taxation.
The weight tax has been proposed in
the past as substitute for the personal
property tax on automobiles. Now the
scheme is to retain the old and to add
the new And instead Of being utilized
to reduce the deficit in the general fund
this deficit being the only excuse for
weight tax In the first place-it is plan
ned to segregate weight tax revenues for
the highway department, where there is
no deficit and where there is more money
than Congress has been willing to appro-
pirate. If the weight tax is not to be
substituted for the personal property
tax and applied to reduction of the gen.
eral fund deficit, then its imposition is
wholly unjustihed and 1t should be
thrown out Of the window. A descrip-
tion Of what the highway department
would like to spend in the future If 1t
had the money is, of course, no justifica-
ton for this proposed additional tax
gouge.
AS for the remainder of the proposed
local tax program, the local taxpayers
have as yet only vague idea of what
it is. Despite the ceaseless shutting Of
the program between the District Build
ing and the House District Committees
special subcommittee, copies Of the pro-
posed revenue measures are still un-
available for study and analysis. An
added danger now is the possibility that
the measures may be rushed through the
House before any opportunity is given
local taxpayers to ind out what they
mean.
C.. |. O. in Canada.