Evening star. [volume] (Washington, D.C.) 1854-1972, 1918-12-19
NO REAL SURPLUS
UNDER 1878 LAW
Apparent Surplus Artificial,
Caused by Law Limiting and
House Cutting D. C.
Estimates.
REPEAL LAW OF 1909
BY THEODORE w. MOVES.
Editorial Correspondence of The star.1

BY THEODORE w. MOVES.
Editorial Correspondence of The star.1
I.
Today's argument against the half
and-half law may be condensed as
follows: A doubling of the local tax
revenue under the half-and-half ar
rangement has come to produce an
amount far in excess of the sum
which can be wisely and economically
expended in capital maintenance and
upbuilding. This excess of available
revenue should be prevented by re-
ducing or eliminating the national
contribution and not by decreasing
the local taxation. since Washington
is now grossly underassessed and is
already the lightest taxed among
American cities.
Washington Now overtaxed.
The evidence before the joint con-
gressional committee and the conciu-
sive findings of that committee dis
pose of the charge that Washinsto-
mans are underassessed and under
the Washingtonian's city tax burden
is, in the aggregate, as large as that
imposed in comparable American
cities, and that, therefore, no more
than this aggregate should equltaply
be exacted. Since the date OF thls just
conclusion of the joint committee the
aggregate tax burden of the wash
ingtonian has been increased by the
addition of a million-dollar tax on
intangible personally without any
corresponding reductions OF the eA,
cessive realty and business taxes OF
committee finds. the aggregate tax
burden of the Washingtonian was
ADEQUATE before the milllon-dollar
Intangible tax was imposed. TINS ag-
gregate tax burden of the WashlnS-
tonian, thus increased. is, in compari-
son with other American cities, ex-
cessive now. Since the District was
not undertaxed prior to the lntan-
gibles tax it is now overtaxed.
How to Prevent Surpluses.
Washington replies to the other
contention as follows: The amount
raised annually under the half-and-
half arrangement in the past has sell
dom, If ever. been more TINA enough
and has often been insufficient to
meet the capitals needs in current
maintenance and in judfdiOus ur-
building through great permanent
public improvements. Much more
than this amount could he wisely ana
economically expended today upon
the capital in accordance with the
standard set by other great Ameri-
can cities.
The apparent surpluses of District
tax money in recent successive years
over one-hnlf Of the District appro-
priations are artificial, not genuine.
The District taxes have, by con-
gressiOnnl pressure on the assessor
and by new taxation, been unduly
AUGMENTED; the appropriations on the
other hand, have been cut much below
the point of meeting the Districts
necessities.
The COmmissioners' estimates since
1909 no longer represent the real
needs of the District. The restrictive
law of 1909 prevents them from pic
turing the municipal necessities Of
Washington,
When the House applies it's habit of
cutting down the estimates by mil
lions to the Districts estimates, pre-
pared in accordance with the law of
1900, there results automatically and
inevitably n surplus OF unexpended
| local revenues, which, however, means
| nothing except that Congress has so
neglected to lesislate and appropri-
ate for the capital as to leave it's
! municipal necessities unsatfsffed and
to do the nations city fragrant in
justice,
| Commfssioners' estimates, should be
| repealed.
Congress should consistently ap-
| propriate more literally for the up
| building of the capital.
The half-and-half Law should be
maintained, and supplementary legfs-
| latiOn disposing of surpluses or de-
fcfts arising under its operation
should be enacted SO that these sur
pluxes and deficits may offset one an
other in a series of years.
| II mt any time in the future n con-
| ditiOn shall develop when doubling
| Of the District revenues as at pres
ent calculated shall produce larger
nomically expended upon the capital,
| such surplus can be easily and ad-
| yantageOusly prevented, either by re-
| ducing our realty and "business"
taxes, now conceded to be excessive
| in comparison with those of other
comparable American cities, or by
omfttine from consideration as Dis
| 1rfct revenue for doubling purposes
| under the law all other items of Dis
| trict revenue than the property taxes
! and which shall in erect place the
! .elf-fmposed obligation upon the
| nation to make a minimum annual
! capital expenditure from the. national
taxes equal to the amount which it
|
| local community.
Estimates Do Not Show Full Needs.
| Since 1909 the estimates submitted
by the Commissioners no longer rep
resent the full needs of the District.
The law enacted in that year forbids
them to follow their previous practice,
| i'm accordance with the letter and
spirit of the organic act, of informing
i Congress with reasonable fullness Of
the municipal needs and of leaving it
to Congress to select from alternative
| the items aggre egating the amount of
appropriations which it was willing
to make If this amount was less
! than double the local tax revenue a
surplus in favor of the District went
| over for its benefit to subsequent
! wears If the appropriated amount
was more than double the local reve-
nue., the United st. States nesa advanced vans d. to
.-t...e@ tho amount of this deficit