Evening star., 1951-05-23
Action Slated
On Personal
Properly Tax
Joint Committee
Meets Friday on
Repeal Proposal
By Harold B. Rogers


Districts personal property tax on
household goods and jewelry will
come up for action at pm
Friday before a Senate House
joint committee.
The Fiscal subcommittee of the
Senate and House District Com
mittees will have before them the
testimony of two public hearings,
which ended late yesterday.
While members Of the JOINT
unit would not commit them
selves on what action may be
taken, there was a strong indi-
cation. from the line Of question
ing pursued during the hearings,
that the group may Kill the pro-
posal.
Outstanding among the doubts
expressed by committee members
was the fear that it would be
difficult to get either house of
Congress to approve a cut in
District taxes without provoking
a drive for reduction of the legal
$12 million Federal payment to-
ward District costs.
Questioned on Substitute.
Senator Hunt, Democrat, of
Wyoming repeatedly asked wit
nesses what new taxes would be
proposed to take the place of the
100000 loss of revenue from re-
peal of the tax on household
goods. Most of those favoring re-
peal contended the loss could be
recovered by more attention to
collecting the personal property
tax on business and by an increase
in the city sales tax collections.
Meanwhile, the joint committee
will have before it for action III
other proposed changes in the
District revenue laws. They were
discussed briefly during the two
days of public hearings, but most
of the testimony centered on the
proposed repeal of the tax on
household goods and jewelry.
The Washington Board of Trade
yesterday added its support to
previous testimony of District
officials for repeal. 10 v. Morgan,
member of the boards municipal
finance committee, approved pro-
visions of an amended bill, agreed
to by District officials and the
District Bar Association. Mr..
Morgan is president of the Bar
Association.
Favors Part of Talk.
The board spokesman said it.
would be unwise now to repeal all
OF the personal property tax. He
favored leaving it on business and
some other property. He sharply
criticized the household tax as
"uneconomic in conception, I'M
scientific in administration, un-
sound in practice and unequal in
application.
Tangible personal taxation" he
declared. lis a hold-over from the
times when standards of value were
based entirely on capital, or value
Of property. and the tax system was
based on the cost-of service theory
This theory has pretty generally
long since been abandoned in favor
OF the ability -to-pay principle"
Herbert Pillen, representing
Mercury Press and Controlled Cir
culation Newspapers, asked the
joint committee to repeal the per-
sonal property tax on imports, in
cluding newsprint. The 2 per cent
levy, he said, is laid on newsprint
placed in warehouses in the Dis
trict, but no tax on such imports
Is levied by any State in the coun-
try. At least two WASHINGTON
newspapers, he said, have their
newSprint put in warehouses in
nearby Virginia and pay no tax
on it. The rail freight rate on
newsprint to nearby Virginia,
however, is much higher than the
rail rate to the District, he said.
Business Tax Repeal Asked.
William T. Pace. counsel for the
Northeast BuSinessmen's Associa-
tion, said his organization wants
repeal of the personal property
tax, not only on household goods,
but also on business.
Guy Pearson, District Collector
OF Taxes, and James Martin, Act
ing Tax Assessor, both favored the
pending bill, expressing belief that
increased collections from business
would recapture substantial funds
lost by repeal of the household
goods levy.
Budget Officer Walter L. Fowler,
outlining at length the fiscal sit
uation Of the District, reiterated
his previous approval of the re-