Evening star. [volume] (Washington, D.C.) 1854-1972, 1937-04-15

officials elected or appointed
dents within definition Of act,
The proposed District income tar
raises a number OF points Which
cannot be adequately discussed in
single article. There ,uill, there
fore, be four articles on the local
income tar, of Which this is the
first. The tolloDing article discusses
the principle OF duplicate or oper-
tapping taxation, as applied BY the
local income tar proposal.
TIME proposed District income
tax, roughly estimated to
raise about 100000 an
4 nually, is considered an out
standing example of double tax
ation," the principle Of which has
been widely condemned, not only by
President Roosevelt, but by every
recognized authority on taxation.
This new tax would levy a burden
on incomes here, which already are
subject to the Federal income tax,
thus piling second tax on already
heavily taxed incomes.
The District income tax would be
laid not only on the income Of bona
fde residents of the city, but also on
the income from "all property owned,
and from every business, trade, or
profession carried on in the District
of Columbia by persons not residents
of the District"
This would tax people who earn
their salaries in the District, even
though they live in nearby States. A
credit is permitted on income taxes
paid to States, but the credit extends
only to the income tax. Thus a
credit would be allowed Virginians
who pay Virginia income tax, but
no credit would be allowed Maryland
ers-Maryland having no State in
come tax. 1t would also tax corpora
tons, joint stock companies and as
sociations for profit.
Rates of the new District Of Co.
lumhia income tax range from l per
cent on the amount of net income not
exceeding $4,000, up to per cent on
the amount of net income in excess Of
$4,000, for individuals. The corpora
ton tax is per cent on net income.
Raises Double Taxation" Cry.
While many objections will be
raised against the proposed District
income tax on other grounds, one of
the first, plain on the face of it,
is based on manifest double tax
alton"
To tax the same source twice is in
direct violation of the announced
policy of the Interstate Commission
on Conflicting Taxation, the succeed
ing Tax Revision Council, and in
statements of Franklin D. Roosevelt
as Governor of New York State, and
as President of the United States.
While Governor, Roosevelt COM
planned that Federal State and local
governments. at one and the same
time were taxing incomes, inherit
ances, commodities, corporations and
property.
THE result is confusion" he de-
clared; "the result is bitterness; the
result is unfairness. We have no sys-
tenn; we have no delimitation. Federal
and State governments vie with each
other in taxing the same source
State and local governments vie with
each other in duplicating taxes or
the same property"
Roosevelt Attempt. Correction.
AS President, Roosevelt launched 9
movement to help untangle the tai
skein. In speech to the United
States Conference Of Mayors here ir
November of 1885, he announced he
would call a forthcoming conference
to revise and coordinate Federal
State and local tax systems.
Taxes have grown up like Topsy
in this country" he told the mayors
There have been a great many efforts
to simplify taxation, to establish line.
of demarcation between the different
types of taxation, giving certain types
to localities, others to the States and
still others to the Federal Government
I'VE are stepping on each others
toes, especially in the past S, 10 OF
Is years. In fact, virtually since the
beginning Of the World War the gen.
eral tax situation in the United States
has become not only more complicated
but has called for revision. We haven't
had revision, and I think the time
Is coming, not this session Of Congress
but the following year, when all Of
us can get together and sit around
a table and work out better system
of taxation, State, municipal and Fed.
eral."
May Call Conference This Year.
The President has not yet followed
up this promise by call for such 9
conference, but there have been indi.
cations that he may do 50 after the
adjournment of the present session
A resolution requesting him to cal
the conference was offered by Sen.
ator King, chairman of the Senate
District of Columbia Committee, ir
January of this year, but the resolu-
ton has not yet been reported by the
Senate Finance Committee.
A different step in the same general
direction was taken by the President
early in 1885 when he directed Secre.
tary Of the Treasury Morgenthau tx
undertake study OF sources OF tax.
alton, with particular reference to the
matter of conflict or overlapping Of
Federal, State and local taxation.
The Treasury survey, a compilation Of
the yields since 1890 of State take.