Evening star., 1947-06-11
The Short End of the Stick

In two short hours of debate on Monday
afternoon the House discarded months OF
labor by It's own members and municipal
officials in the preparation of reasonably
fair and productive tax program for the
District.
The most important part OF this tax
proeram was a new income tax. 1t was
drawn to produce more revenue and 10
remove some, though not all, OF the dis
graceful political exemptions which made
1t a unique example of rank discrimina-
ton in taxation.
In debate this new bill was emasculated
by amendment to exempt from local In
come taxation all Federal employees VINO
submit q sworn affidavit to the tax assessor
claiming domicile in one OF the states.
Thus 1t continues one discrimination. 1t
continues to tax one citizen who lives here
while exempting another citizen who lives
here but claims legal domicile elsewhere.
It establishes a new discrimination, as
between the citizen on the Government
payroll and the increasingly rare citizen
who depends for living on private
employment.
Furthermore, the amendment reduces
estimates of revenue and raises new
question of where the District Is going
to get the money to meet It's bills. The
Senate may rectify this deficiency by in
serting additional taxes, such AS doubling
the relatively low liquor tax. But it mas
been shown so clearly, and so repeatedly,
that Congress will not apply the principle
of fair and equal taxation in the District
through an income tax that 1t would be
better to abandon the income tax alto
gether and try something else.
The original principle behind the new
tax program was to spread the burden OF
local taxation more evenly. The relatively
small part OF Washington's population
subject to local taxation is heavily taxed
now. The problem is to get more taxpayers
on the rolls, rather than higher taxes.
But the House program has produced no
reforms in that direction. The real estate
owner-and less than half of the cityS
real estate is taxable-has been soaked
again, through increased assessment
through an increased tax rate and through
q Is per cent water tax increase. The
same group paying the income tax, with
few additions of people not on the Federal
payroll, will continue to furnish the reve-
niue while others, receiving equal benefits
In municipal services, will ride free
That is the dark side of the picture, not
only from the standpoint of decent equity
but of raising necessary revenue. In con-
trast, the House took two commendable
actions It increased the Federal payment
In recognition of the increasing financial
obligation of the Federal Government to
It's seat of Government. 1t devoted a
fourth of this increase to the water de-
partment, in token payment for the water
it now receives free. These steps represent,
but only In part the intelligent leadership
of Representative Everett Dirksen as
chairman Of the House District Committee,
whose great ability and prestige in the
House have made him powerful friend
in court. The great majority of his COM
mittee members, including Representative
Bates of Massachusetts in charge of the
tax program, were willing to relegate polit
ical interests and champion the interests
of their unrepresented local constituents.
Without voting representation in their
Government. however, local taxpayers will
continue to hold the short end of the stick.