Evening star., 1938-05-15

Robert J. CottreH. E. B0
in Congress which. for the first time
would tax Intangible property. The
committee Immediately opposed this
and did considerable work in an effort
to prevent enactment of the measure
Its efforts. however. only served to
postpone the date of the levying Of
such tax.
In 1912, agitation to cut the Federal
Governments share of local expenses
gained considerable impetus and the
committee went to great expense to
prepare complete history and state
ment Of the fiscal relations existing
between the United States and the
District. For eight years, it carried
on a vigorous campaign. in which it
was joined by other organizations in
the city. At the end of that time.
sentiment in Congress had changed SO
completely that the proportion was
altered to 60-40.
A bill was offered in 1922 to change
the practice of assessing real and
tangible personal property from a
66 2-3 per cent of true value basis
to 100 per cent basis The COM
mittee. then under chairmanship
of Roger Whiteford, recommended
against this change. fearing there
would be no reduction in the tax
rate even though the assessments
were increased. Since that time, the
committees position has been upheld
and most people agree today that SO
far as real estate taxes are concerned,
the District would be in better po-
sition before Congress if the basis
of assessment were lower and the tax
rate higher.
AT the same time it was proposed to
increase the rate of intangible prop
erty from 80 cents to so cents per
hundred This also was opposed.
Wanted to Cut Share.
Continued efforts on the part Of
many members of Congress to reduce
the Federal share even below the
present figure of $4,000, 900, greatly
expanded municipal functions, COM
plicated by the welfare responsible
ties developed since the depression
and the consequent heavier demand
on taxpayers have combined 10 pro-
vide a period of intense activity. The
rapidly changing financial scene has
greatly expanded the activities of the
committee from a group which orig
lnally confined itself largely to proper
assessments, to an extremely active
BODY for reviewing the entire tax
structure each year. In the last two
years the committee has found it
necessary to spend probably more
than half its time in checking closely
on budget estimates and appropria-
tionS.
1t has become more apparent each
year that the review of the field Of
taxation and its effect on the eco
nomic stability of the community
can best be served by paying more at
tention to expenditures. which di-
rectly determine the amount of taxes
that must be collected.
The committees biggest job in re-
cent years was in 1885 and '36, when
the House, guided by former Repre-
sentative Thomas Blanton, then chair
man Of the House Distrii,.. Committee.
voted to reduce the Federal share to
s2,S0o,000. At great expense one of
the countrys outstanding tax experts
was engaged to review the tax bur-
den in the District and make recon-
mendations for sources of additional
taxation. The report conclusively
demonstrated that the local taxpayer
is paying a fair share of municipal
expenses compared with taxpayers
in other cities, the committee con.
tended.
Bill Finally Passed.
Almost entirely as the result of the
findings of this report, the Senate was
prevailed upon to increase the Federal
share to s5.000,000 The appropria-
ton bill was finally passed on that
basis.
The brunt. of the work during the
last seven or eight years has been
carried ably by Edward F.. Colladay,
who was chairman Of the committee
during most of that period and who
as president of the board last year
continued his activity in this field.
He is acknowledged to be one of the
best-equipped men in the city on this
subject.
During the last year the committee,
under the Craftsmanship of Edgar
Morris. did one Of its most outstand-
ing pieces of work. Early in the
year it advised the Commissioners
and the Budget Bureau that in its
opinion the 1889 District appropria-
ton bill should not under any cir
cumstances be larger than for the
fiscal year 1888. Most citizens eroups
concurred in this stand, and budget
requests were carefully scanned and
strenuous efforts made to keep them
low
In this the taxpayers Of the citv
were successful since the budget. as
AAAoAJ oPPaoNCO, CdIIlcO y Rc0erAl
fund appropriation slightly lower than
that Of the present year.
New Revenue Sources.
During the last several years new
sources Of revenue have been neces-
sary. Many Congressman have strong
ly urged the adoption Of an income
tax to meet these needs. The Mu-
nicipal Finance Committee has made
close study and is of the opinion
that such tax would be q serious
handicap to the economic life and
welfare Of local citizens. It believes
that income taxation should be re-
served to the Federal Government.
The Board Of Trade Is not q sup
porter of the business privilege tax
and would like to see some other
method of raising revenue developed
1t has strongly urged adoption of q
sales tax. Failing to secure IA
vorable reaction in Congress and be-
ing convinced an income tax is not
the right sort Of levy. tla co,nraittAe