Evening star. [volume] (Washington, D.C.) 1854-1972, 1912-08-24
No More Tax Revenue.


Despite the fact that the report of the
House subcommittee on District assess
ment and taxation comes at the very
close Of the session. when action is i'm
possible. II is nevertheless 10 he con-
sidered as matter of tho utmost gravity
by all residents of the District who have
a direct interest in tho communitys vel
fare. Not even the assumption that there
will be no time during the next ses-
sion, with it's limit set by the Constitu-
ton. for action based upon this report
warrants its neglect or treatment as
something of no immediate consequence.
II is impossible To eNaggerate the impor-
lance of this attack upon the financial
foundations of the District. and it must
be treated as something urgent and press
ing. in this first stage, so that II will be
fully understood when the time arrives if
ever for practical moves toward carry
ing its recommends tons into effect
1t is also TO he recalled that some of
the recommendations carried by the re-
port do not require legislative action. be-
ing Of an administrative" nature. The
chief and most vitally consequential of
these is the proposal that henceforth all
assessments OF property in the District
shall b. at fun valuation. instead of the
two-thirds valuation which is now in
vogue. Here lies a great danger If
pressure is applied to the assessors politi-
cal and personal pressure from influential
sources inspired by the idea that the
District is an undertaxed community, the
assessments can be raised to the full
value point without further enactment.
THE subcommittee especially points out
that the two-thirds mark is set by statute
as a minimum. The Star has heretofore
demonstrated that this is normal and
equitable basis of taxation. However
that may be. il must not be forgotten
that if the 100 per cent point is attained
and the tax rate is not changed, it being
fixed by law at y. per cent. the resultant
tax revenues will be increased by 10 per
cent above the present return.
The District raises now more tax money
than it is allowed by Congress to spend
in accordance with the provisions of the
organic act. 1t is being forced annually
TO put into the liquidation of it's floating
ndebtedness-which should have been
financed on a long-term bass-a larger
percentage of it's income than is thus
sent by any other municipality As a con-
sequence il is pinched in the necessities
OF administration. 1t is accommodating a
large arrear of needs of permanent i'm
provement nature. 1t requires today more
schools, more bridges. more public struc-
lures of every kind 1t should have a
largc" police force. larger fire depart
ment more health inspectors; i'm short
larger equipment in every department of
il cannot have as long as the Indebted
ness is being liquidated at the extortion-
ate rate of recent years
Why. then. should the District raise
more tax money? To pay of its floating
indebtedness more quickly? Or to relieve
the United States OF part OF its self-as-
sumed burden Of District maintenance?
In other words. to cause the abrogation
of the organic acto More District
revenues matched dollar for dollar by
federal money. would be useful and help
ful. up TO certain point, but not more
istrict revenues, even so matched. be-
yond the point OF providing for the urgen,
current needs and taking care at an
equitable rate of the local Indebtedness.
For there IS danger in too much prosper
ity for the District official prosperity
The taxpayers of this city have long rec.
ognized the fact that there are certain
legislators who are only waiting for the
chance 20 point TO the Districts annual
returns of business. and declare that the
capital community is now raising enough
money out OF its own taxation resources
10 stan. alone without federal assistance.
They have always taken the incorrect
and unjustified view that these federal
dollars that under the act of 1873 match
the District dollars are in the nature of
aid and not in the way of warranted con-
tiJutions To the upkeep OF a municipal
IT, which is at least half federal They
would be delighted to see the local tax
income mount TO such a point that they
could say. with a specious show of rea-
SON. that the District could now stand
alone.
Hence there Is every reason. why the
assessment basis should not be changed
II the tax rate is not simultaneously low
enough. 1t should not be swelled. either
by raising the assessments or raising the
rate II will be well to insure the correc-
ton OF such inequalities as may now ex-
list in the assessments, through admin
istrative or legislative measures. But the
District will object TO and vigorously OPP
pose any changes that have for their OBJ
icct the mere swelling of the tax revenue
for the sake OF wringing more money out
OF il in order to make a bookkeeping
showing of tax returns commensurate
with some mans personal conception oil
how much money city should produce
from its taxable sources.