Evening star., 1937-12-31
Which Tax to Choose.


posed to the Commissioners, one of them
representing the views of committee
OF taxpayers chosen by the Commls-
sloners to advise them, the other repre-
senting the views of a few officeholders
at the District Building, the taxpayers
proposal is by far the more reasonable,
the more logical and the most produc-
tive of assured revenue.
The difference between the two pro-
grams may be boiled down to this:
The citizens committee proposed
abolishng (by failure to re-enact it, the
business privilege tax; proposed sales
tax and left to the Commissioners, as
provided by law, the fixing of real
estate tax rate at the beginning of the
next fiscal year that would raise the
necessary balance.
The offlceholders proposed the same
step with relation to the business priv
iege tax; expressed a pious hope for a
$3.50 real estate tax rate and proposed. in
addition, one per cent income tax and
q one per cent sales tax.
Both committees were united on a
strong plea, the justice of which is
OBVIOUS for an increase in the Federal
payment to the District, which is. Of
course, the place where all considera-
tlons OF additional taxation should begin.
The Commissioners should accept the
recommendation of the citizens tax
committee and throw overheard the pro-
posals Of the officeholders' commmittee
This latter committee was at least partlv
responsible for the hodge-podee tax
program enacted during the past ses-
sion, including the unfair and unwork-
able business privilege tax. It showed.
by its performance last spring, that it
Will hop one way as quickly as it will hop
another 1t blows hot and then blows
cold and then blows hot again on every
conceivable form of tax that can be-
suggested. BY next week it will doJbt-
less change its mind and propose another
tax program.
II the Commissioners are Wise thev
Will insist, first, that the lump sum pav-
ment be increased in some proportion to
the increased local tax burden and the
increased revenue demands of the Cap-
ital. They will accept the recommended
tion OF the citizens committee and join
fundamentally in the proposition that
II additional local tax revenue is neces-
sary-which is probab ble-a selected sales
tax be enacted in the District, as
1t has been enacted in the majority of
the States. as the most equitable as we'll
as the most practical method of raising
additional local revenue.
The proposal, again, of small local
income tax is ill-advised. AS shown last
year, constitutional questions in connec
tion with such a tax in the District are
important enough to raise serious doubt
as to the validity of the tax. If the tax
is equitable, it must apply to members
OF Congress as we'll to the great number
OF District residents who claim legal resi-
uence elsewhere. If applied equitably
IN principle-taxing everybody whose in
come Is earned in the District, including
Conference.-The results of the tax will
be, in practice, inequitable. And to pro-
pose small local income tax at time
when Congress is gradually approaching
the inevitable step of lowering Federal
exemptions and taxing small incomes
which now escape, in addition to raising
rates on Others, is simply asking for
another dose, in peculiarly bitter form,
Of double taxation.