Evening star. [volume] (Washington, D.C.) 1854-1972, 1915-10-29

cannot see how it could proportion its
share on the basis of ground values
Tax Reform Association
Presents Argument Before
Congress Joint Committee
| A plea for change in the method of
taxation in the District and for local
elf-government was made today by
w. D. Mackenzie of the Tax Reform
Association in his testimony before the
joint select committee of Congress in
Ivestigating the fiscal relations between
the United States and the District gov
eminent. Mr.. Mackenzie's argument
was, in part, as follows:
The argument which l shall present
this morning falls logically under sew
en- main heads, which form, as it were,
links in a chain. The propositions which
shall advance are as follows:
Il. The form of government and the
fiscal system established by the act of
June IL, 1878, have done much for the
development of the National Capital.
| but the results have not been entirely
beneficial.
-. While we all recognize the para
mount control and responsibility of
Congress in the District of Column ia.
municipal Self-goVernment is needed
| SO far as purely local affairs are con-
| cerned, so that Washington may be
made in all respects model American
city and worthy capital of the repub-
| lie.
%. Congress has power to grant the
| right of local self-government to the
people of Washington, and there is no
valid reason why the residents OK this
| city should be deprived Of any of the
| political or judicial rights which are
| enjoyed by their fellow citizens in all
or any of the states of the Union.
-. There is a natural line OF de-
| marcation between federal and munich
pal functions in the National Capital.
| Two Methods of Adjustment.
| IS. There are two methods whereby
the fiscal relation between the District
and the United States government may
be equitably djusted-frst, by segre-
eating federal and municipal expenses,
and second, apportioning cost according
| to the relative value of land in the
District owned by the national govern
ment and by the residents of the Dis
trict.
70. The present system Of taxation
and assessment should be reformed
| ton on the small home owners of
Washington, and especially to prevent
any burdensome increase of taxation il
Congress should decide to withdraw
some portion of the amount now con-
| tributed by the federal government.
II. The comparisons of taxation as
between Washington and other cities
| as presented in these hearings, have no
direct and definite bearing on the prob
lem of how much taxes the District
should pay, and what proportion the
federal government should pay.
The first question which we are to
| consider is in regard to the advantages
and disadvantages of the form of gov
eminent and fiscal system tablished
| by the act of June IL, 1873, commonly
known as the organic act The question
| of fiscal relations is bound up with the
question of the proper form of govern
ment for the District of Columbia, and
shall therefore touch upon the effects
of the political as we'll as the fiscal sys-
TEN. In the first place, the system has
provided funds for paying off a large
proportion of the heavy debts which
existed in 1878. The people of the Dis
trict were not responsible for this debt:
. 1t was contracted during what is known
as the Shepherd era by federal off,
Gals over whom the people of the Dis
Itrict had no control.
Provides a Fixed Ratio.
The present system has provided a
definite and fixed ratio between the
amounts to be contributed, respectively.
from federal revenues and from local
taxation. This advantage has been
fully set forth in the brief OF the citi-
zens' joint committee. So long as the
expenses of the District government
may continue to be betrayed under a
| nj
of course, an advantage to have a fixed
plan by which appropriations shall be
made.
| In some respects the present system
CT appropriating funds has favored va
rious forms of special privilege and en-
couraged pernicious activity on the part
of lobbyists and promoters. 1t is a well
known fact, that lobbyists have in the
past used influence with the District
committees of Congress to divert ap-
preparations for public improvements
to favored sections of the city
Another form OF special privilege has
| been the use of public streets by private
corporations without paying to the city
full value for the privilege. Discrim-
| nations In the assessment of property
are an extremely valuable privilege al
the expense of the average taxpayer.
| How far these Determinations have pre-
vailed in The District Of Columbia will
be considered later.
Accessible to influence.
| But l want to call special attention
to the fact that in putting over schemes
and jobs such as l have indicated the
present system Of District government
is peculiarly accessible to the influence
Of powerful private interests.
Those who have a special pecunia ~
interest in the maintenance of the pres
ent fiscal system have taken the posi-
| ton that while theoretically municipal
suffrage and self-government may be de-
sirable, these political rights must not
be demanded lest the permanence Of the
| half nd half system be thereby endan-
gered. In fact. they have used our po-
| litical helplessness as d plea for special
financial favors at the hands of Con-
gress.
The half-and-half system has been a
contributing factor. although not the
only one. in the enhancement of land
values in the District of Columbia. which
has resulted In immense fortunes for the
favored few and expensive homo sites
and high rentals for government en-
nil nj