Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-04-19
No Unsettlement Now of Tax Rate.

No Unsettlement Now of Tax Rate.
The suggestion of a flexible tax rate
is made by Senator Jones, not as a
separate proposition, but as an IN
tegral and inseparable part Of his pro
posal to return to strict obedience to
the letter and spirit of the act of 1878.
Under the words Of that law full and
unrestricted estimates are submitted
. by the Commissioners: then to the ex-
tent that these estimates are approved
by Congress one half of the amount is
appropriated from the Treasury, and
finally the other half-a definitely as
certained amounts raised by taxa
tion of property and privileges in the
District. Senator Jones suggestion IS
the appropriation from the Treasury
that the nation through Congress in
imposing ii taxes also correspondingly
itself-shall be collected, after deduct
ing other tax revenues like those from
intangibles, and tax SURPRISES of pre-
vious years. by applying to reason
ably stable assessment flexible tax
rate. so far as realty and tangible per
sonalty are concerned.
Under this plan the fixed factors are:
az The relation of the local taxes to
the nations capital contribution, (2)
the total amount of money to be col
lected annually in taxes from the Dis
trict and 60 the standard of assess
is the tax rate. If the three factors
enumerated are fixed and stable the
tax rate can safely be and of neces-
sity must be flexible. The alternative
would be to have the tax rate fixed,
as in Ohio. and the assessment flexible.
If the nation under this plan an
nually announces to the District how
many millions it should raise in taxa
ton to meet its definite fixed proper
ton of the total District appropria-
tions. the whole subject of the methods
of raising this fixed amount might well
be left to the District, which, for ex-
ample, would decide whether to raise
this amount by applying low tax
rate to high assessment, according to
the present practice here and in Ohio
and some other states, or by applying
!, a high tax rate to a low assessment as
in many other states and cities.
As an Independent proposition, re-
pealing by indirection our present fixed
tax rate Of 11a per cent, and making
fhe rate huctuating and uncertain, to
be changed annually and arbitrarily,
the flexible tax rate suggestion would
be the most dangerous and hurtful as
sault upon the capitals welfare that is
conceivable.
The final impressive words Of the
joint fiscal committee Of 1915 urged a
system which should cause Congress to
pursue q definite policy of regular and
liberal appropriations" for the ad-
vancement Of the city, and which
should cause the taxation of the local
community, its contribution to capital
upbuilding, to be "fxed and certain"
Independent unsettlement of the fixed
tax rate would make the local contribu-
tien through taxation huctuatiag and
uReertain.
There ID no necessity whatever this
year for any change in the tax rate,
unless the half-and-half law is to be
repealed, the nations capital obliga-
ton Yepudiated and the whole cost of
capital upbuilding imposed at discre-
ton upon the District residents.
Washington has demonstrated that
the raise of its tax rate to "a per
cent. involving two-thirds increase Of
its tax burden. Is 20 grossly excessive
: ~ to nullify belief that 1t was seri-
ously proposed. Washington has also
proven that the raising Of its tax rate
to 2 per cent, involving . one-third in.
crease in its tax burden. Is grossly ex-
cesaive. Even II full state tax enters
into the comparison Gas it should not)
washinIton falls below other compare
bic cities in tax burden only by =
small fraction. II this di6erential
were much larger. there would even
then be NO need of and no Justice in
increasing in any amount the tax rate
for 1871, since the unexpended tax
SURPRISES, accumulated in wartime.
through neglect Of the very municipal
needs which are now to be met, are
available to cover any possible short.
age on the Districts part in meeting
Its share Of the capitals appropriations
under existing Law.
The average propaganda is as OBJ
stinate as any other victim of bad
habit.