Evening star. [volume] (Washington, D.C.) 1854-1972, 1955-12-04
Another Tdx Prodrum

The tax program chosen by the Com
miSSionerS for submission to Congress in
January is revelation in itself of what
little choice they have in finding ways to
produce new revenue.
In 1949, for example, Congress re-
luctantly enacted a sales tax. To make
the sales tax easier to swallow, Congress
reduced the local income tax by increas-
ing the personal exemption. This was
done on the theory that the lower income
groups, having to pay the sales tax,
would be spared the income tax At the
same time, rates in the upper brackets
were slightly increased
The chief revenue producer in the
Commissioners new tax program Is a
drastic increase in the local income tax.
Personal exemptions have been reduced
to what they were in 1949, so that the
lower income groups end up by paying
both the income and the sales tax 1t is
a much sitter tax, however, and it Is
planned to have it withheld from pay
rolls - turning Washington employers
into local, as well as Federal, tax COL
lectorS-in so far as employees who live
here are concerned.
The details Of this business deserve
careful study when they are available.
Is the Federal Government, Washington'S
largest employer, going to withhold local
income taxes? Are the vicious inequities
In this tax, represented in the wholesale
exemptions voted by Congress members
to themselves and their employees and
other handpicked Federal officials, to be
removed? Is Congress going to wipe out
the discrimination in local tax collection
as between the voteless citizen who lives
here, and the citizen who lives here but
pays income taxes in the State where
he claims voting residence? The tax
Is levied, Of course, in return for services
received by those who live here. Every
one who receives such services, regard
less Of tax liability at home, should pay
the local income tax II existing discrim-
nations remain, the tax remains an I'M
Just tax.
Next to the local income tax, the
Commissioners rely most on the real
estate tax. It was to avoid additional
increases in the real estate tax that heavy
new taxes in other areas were imposed
only two years ago to finance the public
works program. All of those taxes, how
ever, remain, plus another hike in the
real estate rate, plus the higher taxes to
result from the reassessment of real
estate now in progress.
Any choice of new taxes is of course,
q choice between evils, and the Commits
sioners doubtless have chosen a program
that will find least opposition in Con-
gress, for its greater burdens fall squarely
on the voteless residents of Washington.
The other taxes chosen to round out the
program-a tax on rented personal prop
erty, sales tax on telephone bills, sales
tax on lower-priced meals in restaurants,
an admissions tax and higher taxes on
liquor, wine and beer-will be opposed,
but the impact of such levies is relatively
painless
1t is disappointing that the Com
missionerS abandoned the idea of an
earnings tax, applying to everybody who
earns living here. 1t is understandable
that they got cold feet and were talked
out OF 1t. They should have gone down
fighting for it, however, for it is more
equitable than some of the other taxes
and is inevitable anyway.