Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-05-18
NO TAX INCREASE
TILL D. c. SURPLUS
HAS BEEN UTILIZED
How to Prevent Both Surplus
and Deficit in District
Revenues.
OF THEODORE
W, MOVES BEFORE THE SENATE
SUBCOMMITTEE on DlsTHiei
APPROPRIATIONS

I.
In opposing this tax increase as I'M
necessary. We do not wish 10 cut
single dollar from the enlarged APP
propria tions submitted this year ps
the House We know. on the con-
trary, that those appropriations can
be wisely increased. and we urge the
Senate in that direction. we 40 ho'
propose to avoid any tax increase Wy
cutting down these necessary appro-
prations. e.
1t is impossible in any one year 10
meet adequately with the appropria
lions the accumulated and uhnieI
needs of the war time in respect 10
schools streets water supply. and the
dozen other municipal functions Which
at once suggest themselves to one
attention. Whenever Congress APP
propriates with such wise ltberali!.
to meet these urgent immediate
needs of the District that the pres.
raise the .proportionate contrlput,9h
Of the District toward capital uppuila-
ing we shall assent cheerfullv to change
and urge upon Congress to increase
our tax burden in such a way as u
meet the new conditions
will be no permanent increase OF the
tax rate to meet merely temporary
conditions: that there will be no IN.
crease of tax rate to meet q deficit until
accumulated tax surpluses nave peeH
utilized. and that no more Will pc
raised through tax increase than Is
absolutely necessary. after most care
full figuring. to meet the deficit that
Will otherwise exist.
Our objection TO the proposition
that comes from the House is that It
offends these principles from every
conceivable viewpoint.
First. it permanently Increases our
tax burden to meet ire temporary
demand for larger appropriations to
satisfy municipal needs neglected in
the war time.
Second. it ignores the uEexpended
SURPRISES of local taxes accumulated
in the war time. collected under the
law for the very purpose OF meeting
these neglected municipal needs.
Third. it adds far more heavily to
the Districs tax burden than is neces-
sary to meet the slight deficits sug-
gested as possible or likely to oc-
cur in the Immediately succeeding
years OF reconstruction after the war.
No Permanent Rnte Increase.
Our first suggestion is that il any
tax rate increase is enacted in the ap-
act it should be limited
to 1921, in order to meet the tempo
rary conditions of that year. and that
the rate should then revert to II: per
dom. decides that conditions for 1922
compel variation from that rate
This practice would be in line with
what is contemplated by the original
organic act, in which the steps of pro-
cedure chronologically were, first. the
- :,
then the appropriation Of one-half Of
that amount from the Treasury. and
lastly the levy by taxation of the
other half. a definitely ascertained
amount. upon the property OF the Dis
.rict
The tax rate under tina, system
would be a flexible percentage figure.
being the rate that must be applied
TO the assessment roll to bring about
in taxes an amount equal to one-half
Of the appropriations previously made
by Congress. And that system is the
by the act Of 1873.
/ do-aot urge that this system is bet
ter than the one that has become the
practice on grounds Of convenience:
but we should either adhere strictly
to our present practice or. If we con-
slider also the killing Of the law Of
June II. 1873. we should. I think, be-
fore killing it. try the experiment of
literally obeying and enforcing that
original law Of 1873.
No Increase Until sur1lus IL Utilized.
Secondly. there should be no tax
rate raise to meet deficits in District
tax revenues until tax SURPRISES. ac-
in the past, have been
doubled under the law and appro-
priated.
The House committee reports a
surplus Of over $4.000.000 in 1919. Now
this surplus represents tax money
collected in previous years from the
District. but not doubled and spent
in accordance with the half-and-half
law. because of wartime neglect Of
District needs. As these annual I'M
met needs have accumulated SO has
also the tax money collected under
the half-and half law to meet them
Now that these accumulated needs
are to be met. the money accumulat-
as matter Of course. be applied to
them az far as may be necessary to
supplement current revenue.
Inc9ease Of District taxation to
meet District deficits is unnecessary
and unjust while District surpluses
unexhausted and available.
It would be paradoxicai and mon.
local tax money which Congress.
through wartime neglect Of the cap
itaTs urgent needs. has permitted to
accumulate in violation of the half
and half law should be used as a
weapon to destroy that law, or should
be for any reason diverted from final
full application to those very needs
neglect of which by Congress in the
past has permitted the surplus to ac-
cumulate.
1t is waste of time to discuss the
question whether the surplus repre-
sents a legally binding debt by the