Evening star., 1947-02-04

The District suffers from shortage not
only of money, but also Of taxpayers.
Perhaps the most fragrant example
of this is the income tax which last year
was paid by only $4,000. Another 10000
filed returns but were exempt.
District officials estimate that some
100000 of the city's $4,000 population
would be paying the levy If the law did
not limit its application to persons who
cannot prove legal residence elsewhere.
This situation stuck out like a sore
thumb at the West Special Tax Com
mittee as it investigated the existing tax
structure before recommending the new
program now being whipped into legis-
lative shape for Congress.
The committee, composed Of city OFF,
cials and representative citizens, also
reached another major conclusion:
Property is carrying its share Of the
revenue load. During the last fiscal year,
for example, property levies brought in
$29, ,421 1888 of total tax income Of $49,-
o37O24 BY June 80 of this year these
taxes are due to produce nearly $3ow
100000 of 10000, 900 total. These 1g-
ures do not include the gasoline tax or
water rates, however, as these feed sepa-
rate funds.
Spreading the Burden.
Thus, in its search for sources Of in
come, the committee went on the theory
that to increase the rates on property
and income would only place heavier
burden on the relatively few permanent
residents who now carry the load. The
solution seemed to be to try to spread
the additional need of some 100000 900
over as many taxpayers as possible.
The starting point for this spread was
unanimously agreed upon as the income
tax. Even If the city did not need the
money, local government officials felt
the absurd unfairness of the present act
should be cleared up. Although the
Supreme Court has placed the burden
of proof of legal domicile elsewhere on
the would-be tax dodger, it is still pos
sible for two men to live side by side
here for Is years with one liable to
the tax, the other exempt because Of
some slender intent later to return
whence he came. The fact that both
men used the same public facilities for
a quarter of d century does not enter
into 1t at ALL
Thus the first phase. of the assault on
inequities of the income tax now
planned is to rub out the word "domi-
ciled" in the act and make 1t apply to
residents who spend more than three
months of the taxable year here. The sec
ond phase is to get at the income of nom
residents earned in the District.
Authorities trace the origin of the in
come tax as far back as the so-called
"tallage duty" levied during the Middle
Ages in France. Although this was
nominally tax on demesne lands Of
the crown, they say, 1t was usually de-
termined by the ability Of tradesmen to
pay as determined from their profits.
Unwilling Taxpayer Residents.
The present District tax was enacted
in 1899 and then only after stormy con-
gressional sessions that foretell of hard
days ahead in getting it changed. The
bald fact is that Congress simply does
not want to levy District tax that will
affect it's members or constituents.
As early as the depression years of
1882, efforts were made at the Capt.
tol to substitute broad income tax for
the then existing tax on intangibles.
They failed. Then in 1885, special tax
committee was created at the District
Building to plan ways of meeting an
expected s6,0Oo,OoO deficit by the fiscal
year 1899. r'
Working with House District 'subcom-
mittees the special committee came up
with 1887 revenue bill built around an
income tax The House knocked 1t out
after bitter debate and substituted a Is
per cent increase in the real estate rate
bringing it to SITS per hundred dollars
of assessed valuation. The Senate re-
stored the income levy but lost out in