Evening star. [volume] (Washington, D.C.) 1854-1972, 1937-05-11
Reckless Tax Schemes.

The Commissioners special tax COM
mittee indicates regrettable recklessness
IN Its disposition to propose additional
forms OF taxes instead OF substitute taxes.
The weight tax, proposed originally as
substitute for the existing personal
property tax on automobiles, becomes, in
the hands of this committee, an addi-
tional form of tax.
The income tax, proposed as a substi-
tute for the present tax on intangible
personal property, is now being put for
ward as a sort of experiment for trying
1t on the dog. If the income tax, in the
face OF manifest difficulties of admins
tration under the population conditions
peculiar to the District, is found work.
able and its curious inequities are upheld
by the courts, then the intangibles tax
would be removed. For the present,
according to the reports, the intangibles
tax would remain while the income tax
was being given trial.
Such an attitude exhibits disregard
OF the condition of the unrepresented
taxpayers in the District that one does
not willingly associate with the District
Building. Everybody knows the DISPOSE
ton by some members of Congress to
carry out their pet theories of taxation in
the District, based on tax systems In
their home States, regardless of the
other taxes which exist already in the
District. Everybody is familiar with the
dangers, as demonstrated in the past, of
proposing new taxes as substitutes only
to see them adopted here as additional
taxes. Were it not for the considerate
and reasonable attitude so far mani
tested by Chairman Kennedy and the
members of his special tax subcommit-
tee of the District Committee, WASH
ingtonians might we'll fear that in the
end they will be plastered with every
conceivable tax. 1t is a difficult thing
to remove tax, unless the removal is
directly coupled with the substitute.
The tax on Intangible personal prop
erty has been a good revenue producer
in the past. Its yield for the next fiscal
year has been estimated at s2,5OO,OOO.
No wonder that fear is expressed lest
dropping this tax in favor of a local
income tax will put the District in
the position of Aesops dog which
dropped the bone to grab the larger,
juicier morsel reflected from the water
But the proposition to retain the
intangibles tax until the income tax
Is in the bag and found workable is
50 palpably unfair that it cannot be
entertained for moment by Mr.. Ken
nedy's subcommittee. AS Mr.. Lodge,
president of the Federation of Citizens
Associations, suggests, more time spent
at the District Building on the efficient
collection of taxes might result in great
er revenue from existing forms of taxa
ton and minimize the need for the i'm
position of wholly unjustifed additional
forms OF taxation.
There is an opportunity now to de-
velop revenue from system of local
taxes that will not overlap the field of
taxation already pre-emptied by the
National Government. Imposition of
local income tax, even if the admin
istrative difficulties are overcome, would
merely complicate the existing maze
OF conflicting, duplicating taxes at
time when the Federal Government is
considering new excursions of its own
into the lower income brackets. A local
income tax can be avoided, and it would
be the part OF wisdom to avoid 1t.