Evening star., 1939-06-14
Who Pays Ii

From the Congressional Record.
Mr.. Rayburn-I may say to the gen.
tleman that am one member of the
House who will not vote for any tax
bill for the District of Columbia that
has any ambiguity in it with refer
ence to the question whether or not
may have to pay an additional in
come tax in the District of Columbia
or whether my clerks will have to pay
an additional income tax in the Dis
trict of Columbia when they are citi-
Gems Of the State of Texas. (Applause)
This ambiguity, in so far as it
might affect the distinguished Ma
jority Leader of he House of Repre-
sentatives and his clerical employees,
was removed through an amendment
which exempts the salaries of men,
bers of Congress and their employees.
1t is not wholly removed in so far
as it affects the salary of, say, the
Chairman of the Reconstruction FL
nance Corporation, MIR. Jesse Jones,
who, though neither a member of
Congress nor Congressman's clerk,
is still a sound citizen of the great
State of Texas.
Texas has no income tax. Would a
citizen of Texas, earning his living
in the District, be taxed? Questioned
closely on this point during debate
on the District income tax bill, Rep
resentative Dirksen of Illinois said
he could lind precedents and good
argument on both sides of the ques-
ton" But the bill is rather explicit.
It says that no credit will be allowed
against the District tax on an in
come which is exempt from taxa
ton In a State or Territory. Mr..
Jones salary, and the salaries of his
fellow Texans earned in the District,
exempt from income tax by Texas,
would therefore be taxable by the
District under the bill. These Texans
may wish to discuss the question in
more detail with their tax-exempt
Congressman.
AS for the citizens of the thirty
two States which have an income
tax, including Maryland and Vir-
ginia, the House bill taxes their sal
aries earned in the District of Co.
lumbia-if they are not members of
Congress or Congressional secre-
taries-but credits them with State
income taxes paid. If they are Fed
eral employees, however, and their
States have not yet enacted laws to
tax their hitherto tax-exempt sal
aries, they will pay the tax to the
District of Columbia without State
tax credits. When the District begins
taxing salaries Of Federal employees,
the States will not be far behind.
For thousands of non-residents
who earn their living in the District,
the bill means form of triple taxa
ton. The Federal Government takes
Its full share; the States come next
and the District collects what is left.
In some cases, the Districts share will
be substantial. In others, the District
will get nothing after credits for
State taxes are allowed.
For District residents, the bill car
ries its own grave threat, with rates
that can be hiked at the whim or
caprice Of Congress. It would be diff
ficult to find parallel for the bald
selfishness shown in the vote to ex-
empt Congressional salaries. The
money is not as important as the
attitude Of legislators who, holding
the exclusive power of government
over a community of voteless Ameri-
cans, effectively claim for themselves
complete immunity from the obliga-
tions they impose on fellow citizens.