Evening star., 1937-05-28
Neev Income Tax Proposed for District
Duplication Among Objections Thus Far Raised to Bill
in Present Form.
SHE new income tax bill, pro-
posed by the House Subconl-
mittee to be keystone of the

ne ItW 1nCOIHS tdA U1lI, pIO.
posed by the House Subconi-
mittee to be keystone of the
L District of Columbia FIVE
point tax program, was originally de-
signed to raise about $4,000, 900 gross,
or a net of $2.500,000, If the intangible
tax is repealed.
The new District of Columbia tax
would levy another load on the same
incomes already taxed here by the
Federal Government and, unless re-
vised by the District commissioners,
contains several features which have
been analyzed by tax experts to be
decidedly Objectionable.
Briefly, the bill would require all
single individuals to file a return if
they make met income" Of $1,000
or over, and all married persons liv-
ing with husband or wife, to file
return if making a net income Of
$4,000 or over Returns must also
be filed by every individual havir 6 a
gross income of $4,000 or over, re-
gardless of the amount of his net in
come.
The old tax structure provided as
follows:
On net income not over $4,000, a
tax of l per cent.
On net income between $4,000 and
$4,000, tax of IL per cent.
On net income between $1,000 and
$4,000, tax Of per cent.
Between $4,000 and $4,000 a tax
of per cent.
Between $4,000 and $30,0O0 tax
of 312 per cent.
Between $4,000 and O,OO0, a tax
of per cent.
Over S50,000, a tax Of per cent
The corporation tax was 5 per cent
on net income.
Outstanding Objections.
Among the outstanding objections
so far raised to the income tax bill
in Its present form are these:
1t is duplicate taxation, taxing the
same source against which the Fed
eral Government already levies an in
come tax
If local State Legislature, acting
for an individual State, cannot tax
Federal employees incomes, how can
Congress, acting in the capacity of q
local Legislature for the District, do
that which is forbidden to other State
Legislatures?
Attempts by the proposed bill to
collect a tax from nonresident indi-
viduals and foreign corporations, To-
Gated in other States promises to run
into veritable morass of difficulties
Of administration.
The District measure, while laying
a tax load on most of the rank and
file of the Federal employees of the
city, would exempt the President and
Federal judiciary.
Income from Federal securities held
by persons residing in the District
would be subject to the District in
come tax, but income from Federal
securities held by person not a resi-
dent of the District would not be sub
jected to State income tax where
he resides.
These complications and inequities
in the pending District income tax
act face the District Commissioners
as they take up the proposal of the
House Subcommittee today to prepare
the f1ve-point tax structure for sub
mission to the House in revised form
The commissioners have been given
only until Tuesday to whip the pro-
posals into final form
Estimates on the old income tax bill
point to a gross revenue of about
s5,000,000. If, however, the Intangible
tax is repealed, with its revenue OF
roughly half that amount, the net
gain in revenue for the District would
be about s2,500,000 Last year, how
ever. the Intangible tax produced 81
147,000.
Proponents of the income tax claim
that, despite the fact it Is a perfect
example of double taxation, it is a
fair tax, similar to that now levied
by "a States of the Union, and would
be very productive. BY taking a tax
from incomes already taxed by the
Federal Government it is really double
taxation OF the most direct sort. No
credit is allowed locally for Federal
income tax payments.
Federal Rates Similar.
How the local tax will pile on top
OF the Federal levy is seen by taking
look at the Federal rates. Uncle
Sam requires returns from single
people making $1,000 or more, and
married persons making $4,000 or