Evening star., 1951-02-04
Dispersal Poses
Tax Problem
For Workers
Maryland May Take
Income Levy From
District Residents

Moving Government agencie
into Maryland under the dispersa
plan is going to mean that tn,
District resident who goes to worl
across the Maryland line also il
going to face demands for Mary.
land income taxes.
What is more, the fact the Dis.
trict is cutting the income take!
for the lower brackets is not goine
to mean anything to the Distric
residents in those brackets whit
works in Maryland.
Maryland, collecting from non.
residents who earn their Salarie!
in that State, permits the taxpayer
to deduct from the Maryland ta1
the amount of tax on his salary
paid at home. The amount tn.
District resident saves from tht
tax reduction in Washington will
have to be paid to Maryland.
Plan Familiar to Many.
District residents who work a
the Agricultural Research Cente.
at Beltsville and at other Gov
ernment installations in Mont
gomery and Prince Georges Coun'
ties already are familiar with tn,
Maryland nonresident tax.
Meanwhile. a subcommittee O
the House Public Works Com
mittee prepared to hold hearing
tomorrow on the bill to dispers'
Government agencies as a defens,
measure.
A total of 10000 employees wouls
be moved into Maryland and Vir
ginia areas 20 miles from down
town Washington in the $19t
million project.
Tax Method Explained.
Six permanent buildings woult
be built on as many sites ant
two temporary buildings.
How the Maryland tax on non.
residents works was explained b,
A. Coleman Barrett. manager ol
the Office maintained by the Mary.
land Controller of the Treasury il
downtown Washington for the
convenience of it's taxpayers living
in the District. The Office is al
1919 F street NV
Mr.. Barrett gave this example
of how the Maryland tax would
apply to the District resident en-
ployed in Maryland:
A wage Garner making $4,000 g
year. married with one child is
assumed.
In Maryland he is allowed So .00C
exemption for himself and his
wife and 5000 for their child. In
the absence of any other deduc-
tions he pays 2 per cent tax on
$4,000. or $40.
The wage Garner makes re-
turn to the District because he
earns more than $4,000. He is al
loweo a personal exemption of
$4,000. plus $500 each for his wife
and child. total of $4,000. There
fore he has no District tax to pay
Also, he has no offset against the
Maryland tax and he pays that
State $40.
The Virginia resident working
IN Maryland also is subject to the
nonresident tax. But since tht
Virginia rates generally are bi
higher than those in Maryland
the Virginian offsets his home
State payments and owes Mary
land nothing.
Virginia had nonresident tal
on salaries and wages but re
pealed it during World War II.
Other Developments Listed.
These were the other develop
ments in the dispersal program
yesterday:
/. Both Senator Byrd and Rob
ertson, Democrats, of Virginia
expressed doubt that dispersa
would mean much in cutting tht
value of the Capital as a targe
for enemy bombs-the object O.
the plan. Members of the Vir'
ginia delegation in the Hous
adopted a rather skeptical atti
tude.
2. The Arlington County Board
in statement to the Holland sub
committee of the Senate Publi
Works Committee, urged Fedora
grants for planning made neces
sary by the Federal program
While none of the projected build
ings is expected to be placed il
that county, the board expresses
apprehension lest highways t.
buildings farther out becom
'traffic sluice-wayS" isolating Ar
lington from the passing traff
or dividing the county into 'un
connected parts.
Fairfax Asks Fund Provision.
3. Fairfax County, Va, also il
a statement by the Board of Sup
ervisors to the Senate subcommit
tee, said there are ample area
IN the western part of the count
for Government agencies, bu
asked that the county "be givel
consideration in any funds to b
made available for public facili
ties due to the increase in popula
ton caused by the dispersa
program
4. The Maryland National Capi
tai Park and Planning Commission
which has planning jurisdiction
over parts of Montgomery an,
Prince Georges Counties, for
Warded a resolution to the Senat
subcommittee. It said that dis
persal is feasible only if plans fo
1t are co-ordinated and integrate,
with regional plans and the plan
of the local areas.
Senator BYRD said yesterda
that a strong defense of Wash
1ngton against a possible bombin
attack would be more effectiv
than the dispersal of Government
agencies. He said there should b
all types of protection, especiall