Evening star. [volume] (Washington, D.C.) 1854-1972, 1902-05-31
Taxation and Municipal Prosperity

Every community blessed with growth,
prosperity and progress toward the attain
ment of municipal ideals finds itself bur-
dened somewhat more heavily from year to
year with taxes assessed for the support OF
the municipal machinery. The rate OF the
growth of this tax burden is slightly larger
than the rate of the growth of the popula-
ton, so that under normal conditions the
per capita taxation increases somewhat
with the advance of the city in. the size.
This is because large establishments cost
more proportionately than smaller ones
But In the constant readjustment Of the
tax burden to meet the needs of the COM
munity care is always exercised by intelli-
gent municipal authorities that the in
creases shall be gradual and not spasmodic.
If emergencies arise, occasioned by the
need of new buildings, new sewers, new wa
ter supply facilities, new parks, the wise
legislature and administration do not try
to meet it by suddenly increasing the tax
revenues of a single year or series OF
three or four years. To do so would be to
menace the business prosperity of the COM
munity.
The factors which make for material ad-
vancement in the community, the mer-
chants, manufacturers, employing and dis
IrlDutlNS Glasses, HltSl De dSSuTtd lHdl lhc
drain upon their own resources for the
maintenance of the municipality shall be
reasonably stable. They must be permit
ted to look forward with confidence from
season to season and to estimate the pro-
spective demand upon their income on the
part of the local treasury. To confront
t. suddenly with material increase in
the tax burden, say of fifty or sixty per
cent, is to upset their calculations and to
hamper their operations, perhaps even to
force some of them into financial embar-
rassment.
Recognizing tie necessity for stability and
graduainess of increase in the taxation.
the administrators of municipal affairs have
met their extraordinary needs by eXtraor
binary measures, borrowing funds, when
needed in larger sums than the immediate
or prospective tax revenues afford. and re-
paying such loans by means Of sinking
fund. created during long term of years
through very slightly increased taxation
of the whole community. Thus the munich
pality is permitted to progress, to provide
it's needs, eXpend its equipment without
CT ping its mainstays of prosperity, driv-
ing away valuable citizens and establishing
dangerous precedents of municipal financ-
ing.
All OF theSe abstract truths, Wn1ch are in
practical operation in every American city
today, apply with peculiar force to Wash
ington in the present juncture, with it's
taxation system under close scrutiny by
Congress and with a plan pending for the
sudden and eXtortionate increase in the tax
revenues, virtually to meet an emergency.
What has happened in other cities when
the tax burden has been suddenly increased
in large measure Is certain to happen here
Merchants, manufacturers and property
owners will be forced by the radical ad-
vance in the municipalities demand for
revenue into more or less embarrassment
interest rates and rents will be raised and
all will be injuriously affected. The COM
munity will suffer not alone in it's present
prosperity, but in it's capacity to meet even
a normal tax demand in the future.
There is no reason for a violation of the
fundamental laws of municipal financing in
the case of the capital, and every reason for
their observance. The emergency is by no
| means so pressing nor the means of ra-
tionally meeting it so difficult of procure
ment that this great sacrifice Of the COM
munity should be made. The true way out
of the difficulty is easy and straight and ia
miliar. The plan proposed is unusual, diff
| fcult and uncertain of results.