Evening star., 1937-05-14
Where the Need Lies.

Assessor Allen has said he could collect
at least million dollars more from the
ntangibles tax If given the authority
already possessed by the Federal and
several State governments-of running
down hidden taxables. AS Chairman
Kennedy wisely observes, to give the
assessor this additional authority is SIM
pier and more reasonable than to jump
from the intangibles tax frying pan into
the fire Of local income tax, with it's
!nitially high rates. the doubtfully valid
provisions necessary to make it an effec-
tive revenue raiser and its inescapable
inequities arising under the conditions
peculiar to the District of Columbia.
But the committee promises to run into
an involved difficulty regarding the auto
mobile weight tax unless more careful
consideration is given this subject. The
committee seems to be agreed on weight
tax. 1t is not. however, the weight tax
originally proposed as a substitute for
the personal property tax, but weight
tax in addition to the personal property
tax. And as the weight tax revenue
would be treated as a special, earmarked
highway fund-as the gasoline tax is
now treated-the proceeds of this tax
would not go to reduce the deficit in the
money for the highway department,
where the only deficits are those that are
contemplated If such and such program
not yet authorized is carried out in the
future.
Let no heavily taxed motorist believe
that he Is being given the lesser Of two
evils in accepting the lower weight tax
rates of the Commissioners bill in place
of the somewhat higher rates OF the
Collins bill. Under the Commissioners
proposals he would-With some excep-
tions-pay more, not less, for. the privi-
lege OF owning an automobile. He would
pay, in addition to the personal tax, a
weight tax. And as a general taxpayer
he would be forced to raise an additional
amount for the general fund because
his weight taxes would be earmarked for
highway uses only.
The Collins bill would raise $500, 900
for general revenue use-over half the
prospective deficit OF $6000,0O0. What
would be its effect on the motorist? AS
The Stars analysis of this bill showed,
the greatest increase to the owner of
new automobile would be less than SO
year. For the owners OF some new,
expensive automobiles, the weight tax
would mean an actual reduction. It's
greatest effect would be felt by those
who pay no personal property automo-
bile taxes now, because of the deprecia-
ton in value of their old cars. But
should not all automobile owners con-
tribute their part as long as they con-
tinue to use automobiles?
To segregate automobile weight taxes
into a special fund, as proposed by the
Commissioners, would give the highway
department money enough for a grand
program of highway improvement. BY
transfer of some items from the gen.
eral revenue to the highway budget,
the general fund would be relieved Of
some expenditures. But the problem
facing the District now is a deficit in
the general fund, not deficit in the
highway fund. Solve this problem first,
then tackle the highways later. It would
be simple to appropriate money from the
general fund for highway improvement
when Congress authorizes the program of
improvement. But it will be unwise to
earmark and isolate automobile weight
taxes for highway uses only, especially
when such taxes-in lieu of personal
property taxes-can be utilized now in
the avoidance of a $6O0O,OOO general
fund deficit.