Evening star. [volume] (Washington, D.C.) 1854-1972, 1947-07-20

and individual Federal income
taxes, as compared with other
communities.
Most startling Of all in thi
study" he said, lis the revelation
that, exclusive of realty taxes, the
entire burden of direct taxation i.
borne by somewhere around 100000
persons or OBSERVATION-DISCLOSURES
ing, roughly, with their families, les
than a third of the total popula-
ton!
Taxable Land Reduced.
More than two thirds of the
persons who make this community
a more or less permanent home" he
charged, ride free. Only a sales
tax would get these free riders"
Reduction of the taxable land
area here, Mr.. Koran declared
pointed to the law of diminishing
returns, with the prospect that ANY
such super-saturated land area car
be taxed almost out Of existence"
"As real estate taxes go up" he
said, residents who are able to
will move out of the District, and
the city will lose their income, per-
sonal and inheritance taxes. This
is not simply theory; the principle
is being demonstrated now in fact
he declared.
Visitors Would Pay.
A sales tax here would raise about
SO 5000 a year from visitors tc
Washington, Mr.. Koran estimated
in addition to the 100000 OF
So, 0o0, 1000 paid by people who Give
here most of the time"
His letter had been sent tt
scores of persons" in Washington
Mr.. Koran said. He hoped their
influence will bring the matter again
to the attention of the Commits
sioners and the Congress, and when
acted upon will lift the weight OF
a great financial burden from the
harassed taxpayers and officials OF
the District of Columbia.
The text of Mr.. Horan's letter fol-
lows:
Dear District Resident:
Under separate cover have sent
you copy of the House Hearings on
the fiscal 1913 budget for the Dis
trict of Columbia.
This is an important document
in my opinion, for it tells the story
of how the appropriations were
made by Congress. 1t shows, too
how your tax dollars were allocated
to provide for all the services, insti-
buttons, agencies and operations
which go to make up your COM
munity.
This years hearings are espe-
cially important, in my opinion, for
they contain not only the detailed
Qualifications offered by your mu-
nicipal ofhcialsfi but the expressions
of opinion from most Of the or
ganized Citizens Associations, and
almost a hundred individual tax
payers, as well.
Program Inadequate.
"You will be impressed when
reading this document that not
everything desirable from the stand
point of the .community's needs, and
the desires of those of you who pay
taxes, was included in the final bud
get. The reason for any omissions
is simply the lack of an adequate
revenue producing program.
1T is my opinion after serious
study of the District of Columbia as
its operations are reflected in the
current budget proposals, that 1t
cannot be supported properly on the
present scale of expansion without
a more adequate plan for deter
mining the Federal Payment, and
serious consideration being given
Immediately to the levy of a Sales
Taxa tax which would apply to
our scores of hundreds Of visitors
as well as those of us who maintain
permanent homes. I do not believe
the recent tax program-principally
an increased real estate tax rate
and the intricate and inequitable
income tax-is a solution adequate
to the Districts problem.
Four Standards Listed.
II believe there are four simple
standards by which the desirability
or availability of any tax can be
measured. These in brief are:
81. The effects of the tax upon
the general economic conditions of
the people upon whom it is imposed,
or upon others indirectly affected;
%. The capacity of the tax in
question to produce revenue in a
fairly stable volume over a reason
able period of time;
%. The equitableness of such a
2