Evening star., 1920-03-27
NO TAX-RATERA|SE
TOMEET TDEFIC|TS|N
D. c. TAX REVENUES
Until Tax SurpIuSeS, Doubled
Under Law, Have Been
Appropriated.
Editorial Correspondence of The Star.l
THEODORE w. MOVES.

Editorial Correspondence of The Starl
THEODORE w. MOVES.
Washington appreciates thoroughly
the earnestness and vigor with which
the House appropriations committee
has attacked its peace-time task of
appropriating in the pending District
bill to satisfy the most urgent of the
accumulated unmet needs OF the capi-
tai, necessarily neglected in the war
time.
For FIVE years we have borne, at first
indirectly and then directly, the bur
den of world-war conditions and con-
sequences. War has monopolized US.
our 1abors and our treasures, in pa
triotic and f-sacrif1cing service.
Municipal I.iberality Wise Now.
We must economic now that the
war is over. that is We must econo-
mize in those matters which relate
to war-making and war-preparedness-
We have been wisely extravaSant in
war expenditures and this extrava :
gance is now to cease We have not
been extravagant. but scrimping and
neglectful in outlays for municipal
maintenance and development. and es-
pecially in outlays for permanent pub
lie improvements, which have had no
direct relation to war-makine.
These wise projects both of just
municipal maintenance and of perma-
nent municipal upbuilding. properly
pushed aside in order to give Uncle
Sam full swing in the war-making
thoughtful. liberal and sympathetic
consideration which they deserve.
d. e. Tax Deficits Replace surpluses.
The House appropriations commit
tee reports that for 1920 there will
be no surplus of unexpended Districp
taxes under the half half law, buA
a considerable deficit like those WHICH
occurred in seven years between 1YO0
and 1910. The committee also An
ticipates. reasonably. a still larger de-
felt for 1921 on the fair assumption
that Congress on the committees in
itiative will endeavor to meet fplly as
many as possible of the weh sub
stantiated District needs that have
accumulated in the war time,
But the committee paradoxically
finds in these conditions reasons to
suggest "a the repeal OF. the half
and-half law by indirection and by
rider and CD an increase Of District
taxation by two-thirds. approximate
ly a doubling of such taxation so far
concerned.
Tax surpluses to XIII Organic Act.
During the last Ave years IS,e un-
wise law Of 1909, restricting the Com
estimates. and wartime
neglect of appropriations for peace
I time needs have combined to prevent
the appropriations An District bills of
twice the tax revenue of the District.
and SO called surpluses Of unexpended
tax money have. resulted. On these
surpluses was based the following ar
gument; doubling of the local tax
revenue under tlie half-and-half law
has come to produce an amount In
excess of the sum which can be wise
ly and economically expended in
capital maintenance and upbuilding.
and this excess of available revenue
should he prevented by repeating the
half and-half law, eliminating the ma
tfonal contribution and doubling Dis
trict taxation.
Equally MurderOus Tax Deficits.
The House appropria tons committee
now demonstrates that the Capitals
reasonable needs for maintenance and
permanent development require not less
but more than a doubling Of local tax
revenue under the half-and-half law
that District deficits in place Of District
surpluses are inevitable. And the COM
mittee bases on the deficits precisely the
same contention as on the surpluses.
namely. that repeal Of the half-and-half
law and approximate double taxing OF
Ghe District people.
Can one blow hot and cold in the same
breath? Is the half-and-half law to be
condemned. contradictorily and paradox
icaTly, whether it produces District tax
surplus or a District tax deficit?
Let Past SurpIuses Offset Deficits.
Washingtons suggestion is that If
these surpluses and deficits in different
years are allowed eQuitably to offset one
another the problem will be rightly
solved without increasing District tax
alton and without destroying the half
and-half law or the principle of definite
proportionate contribution by the nation
toward Capital maintenance and de-
velopment.
The House committee reports: The
surplus revenues of the District of
and-half method of appropriations
amounted to $4.0s3.922.1S on June 80.
1919" This surplus represents tax
money collected in recent years from
the District. but not doubled and spent
in accordance with the half-and-
law because of wartime neglect of
District needs. AS these annual needs
have accumulated so has also the
tax money collected under the half
andhalf law to meet them.
Now that these accumulated needs
are to be met, the money accumulated
to meet them in the past should as
a matter of course be applied to them
as far as may be necessary to sup
pIement current revenues.
Tax Rnte Increase Unnecessary Now.
Increase of District taxation to meet
District deficits is unnecessary and
unjust while District surplusAs re-
main unexhausted and available.
IL would be paradOxlcal aud mon
strous that n surplus of unexpended
local tnx money which Congress
through yvar-time neglect Of the cap
itars urgent needs has permitted to
accumulate in violation Of the hnlf-
and-half law should be used as a
weapon to destroy that law. or should
for any reason be diverted from final
full applicatiOn to those very needs,
neglect of which by COngress In the
nnst has permitted the surplus to ac-
cumulate.
Uncle Sam Faithful to Trust.
II is waste of time to discuss the
Question whether the surplus repre-
sents a legally binding debt by the
nation to the capital or whether the
nation. having collected the money
under the half-and-ha law and hold
ing II as trustee for the Districts
benefit, can rid itself of the trust
obligations by the method which it
EMPLOYS in passing this money with
IT'S own hands from one of it's pock 8
to another.
Uncle Sam will faithfully and scru-
pulousiy fulfill his trust. even if one