Evening star., 1942-12-13

opinion, however, that the Commits
sionerS of the District, as a result of
the study made by the special board
appointed by them, have pointed
out some existing abuses and future
dangers in connection with the tax
exemption of privately-owned prop
erty. The Congress Is obviously at
tempting to set up standard to
prevent some Of these abuses and
it is believed that the pending bill
IS. 2804) does correct many of these
abuses and sets up at least one very
sound and proper standard-name-
ly-that privately-owned properties.
in order to be tax exempt, must not
be organized or operated for private
gain
THE principal abuse, perhaps not
fully corrected by the provisions Of
the pending bill, is in connection
with property owned by exempt or
CARNATIONS which Is not used or
may never be used for the religious,
educational, charitable, or other
purposes which purposes form the
basis for tax exemption. However,
the bill does provide for the pay
ment of taxes upon property sold at
a profit by such organizations and 1t
is believed that as a practical matter
this will prevent in the future un-
necessary purchases of property.
Therefore, we believe S. 1904 is de-
cided step forward and will form
basis for the handling of this prob
lem, at the same time permitting
possible amendment if the occas-
ion arises.
Should Enjoy Benefits.
at is natural and desirable that
many institutions, representative Of
this culture national cultural at
tainments) in its various manifes-
tations. should wish to be located in
the National Capital. And so long
as they perform some function,
without personal profit or gain, that
is of benefit to the people of the
Nation, they should enjoy the bene-
fits of tax exemption, whether or
not their presence in the Nations
Capital is of specific or demonstra-
BILE value to the people of Washing
ton. AS matter of fact. these in
stitutions here are of practical value
to the community because of the
economic benefits resulting from
their presence.
But accompanying this uncon-
tested right on the part of Congress
to grant exemption from local real
estate taxes to those whom Congress
may designate. there is a definite
and tangible obligation on the part
of Congress to see that the people
of this community are not asked or
forced to make up through their
own taxes the deficiencies in rev.
enues resulting from any congress
sional policy of tax exemption in
the Nations Capital.
The exempt private property is
merely a small part of the total
exempt property in the District. The
major part of this exempt property
represents the holdings Of the
United States Government. And
the continued increase in these
holdings. together with the tendency
to broaden the exemption of private
property located in the Capital. Is
accompanied by a constantly in
creasing obligation on the part Of
the National Government to con-
tribute generously to the support
and development of its Capital City.
Your committee believes that
even if nothing else had been accom-
plished the Commissioner study Of
the t2X-eXempt property problem in
the District would be justified by the
deserved emphasis it has placed on
the inadeouacy Of the existing lump
sum appropriation.
Other Obligations.
Lest it be felt that the exemption
of real estate property is the only
basis for an adequate. annual pay
ment by the national Government In
support of its Capital, some Of these
others should be briefly enumerated
here:
"D The obligation which is based
on the absolute control by Congress
over the District.
"(2) The obligation which Is based
on the demands of patriotic pride on
the Nations Capital.
"(3) The obligation which Is
based on the payments from local
taxes, solely because Washington Is
the national Capital.
40 The obligation which arises
from the fact that the people Of
Washington are heavy contributors
to national taxes, exceeding in this
respect tax payments Of any one Of
more than % of the States, and
more than seven Of the States COM
bined"
The report was prepared for the
Municipal Finance Committee by
L. H. Parker, chairman, former tech
nical adviser to the Joint House
and Senate Committee on Internal
Revenue: L. A. Carruthers, former
division chief Of statistics on States
and cities of the Bureau of Census
and former president of the Fedora
ton of Citizens Associations; George
E. Ferris, business executive; Ben
jamin M. McKelway, associate edi-
tor of The Star, and Robert C. Overs,
financial vice president Of the Wash
ington Gas Light Co.