Evening star., 1937-06-11
More Tax-Dodging?


the most bitter committee debate over
the omnibus tax measure reported to
the House on Wednesday did not in
volve the fairness of the whole tax
boosting scheme or the equities or sound
ness of its provisions as they relate to
local taxpayers, but was chiefly con-
Cerned with whether the members of
Congress will have to pay local in
come tax.
Be it said to the credit of the House
District Committee that it voted down
a direct attempt to exempt the members
of Congress from the local income tax.
And despite the partially successful
effort at sabotage by the Progressive
Mr.. Hull of Wisconsin, who is most
anxious that members of Congress be
exempt While everybody else in WASH
ington pays the tax the bill as it stands
today plainly would tax the incomes
OF members of Congress-as it should do
AS Mr.. Dirksen said to exempt the
members of Congress from this tax while
plaStering it on other Federal employees
of much smaller salary would be an
indefensible act. What is more at
time when there is so much indignant
talk about taX-dodging millionaires such
an exemption written into the bill would
constitute the most fragrant example of
collective tax-dodging yet on record.
pnrhanc &c
exemption from the local income tax ex-
tended to members of Congress would
practically kill the income tax as a
revenue raiser. For if the majority of
the members of Congress should take
the fortnight views of Mr. Hull and
exempt themselves from a District in
come taX-members of Congress al
ready being exempt from local income
taxes at home because of their status
as Federal employes-they would hardly
take that step without sharing this
royal perquisite with other favored souls,
such as their highly competent but not
so highly paid secretaries. And as such
an exemption cannot reasonably be made
without including others who might
qualify as non-residents, what is left
OF the income tax would be flop as a
revenue producer and stand merely as a
ghastly reminder to the people of the
District of what taxation without repre-
sentation really means.
The question whether a Congress-
mo o'c Ior, jr
or whether it will be taxable when the
House gets through with it, is not
merely the superficial matter of con-
gressional self-interest or self protection
at the expense OF non-voting taxpayers,
that it might appear to be. The whole
Uorkabllity and administration of the
local income tax as a revenue raiser is
linked directly with the tax liability of
members of Congress. If they are ex-
empt, then thousands of other WASH
1ngton citizens are by the same token
exempt. Every State which has an in
come tax taxes the salaries of non-resi-
dents earned within the State. The
collection OF such tax is usually diff
cult. But in Washington, where there
IS higher proportion of nonresident,
non-direct taxpaying population than in
any other city or State in the country,
the difficulties encountered by the States
would be magnified many times.
The income tax principle is a sound
principle, although it has suffered politi-
cal and economic abuse. But the in
come tax is distinctly a Federal tax.
imposition of local income tax under
the population conditions of the District
represents double and even triplicate
taxation of the same income in it's most
vicious form. Non-Federal employe res
idents of Maryland and Virginia earn
Ing their living in Washington-as thou-
sands do-would pay three separate
taxes on the same income. And if they
should be exempt, along with Congress-
men and other non-residents, the in
come tax would be worthless as a rev.
enue producer and unique in it's vicious
discrimination against the residents of
the District.
There was time and opportunity to
have worked out a local tax program
representing an intelligent effort to draw
the line between fields reserved for
Federal and local taxation in the Dis
trict of Columbia. Instead, the same
old slap-dash, hodge-podge of duplicate
and triplicate taxation is being created
here in aggravated form that causes
such distress in the States. The local
income tax, which has little to recon-
mend it and much to condemn it, were
better abandoned.