Evening star., 1920-03-26
Repeal and Tax Increase.


act, the House appropriations commit
tee has written into the Districts
money bill for the next fiscal year the
identical provisions which are now
pending in the Senate, abrogating the
half and half system. Without appro
priasing the surplus of District reve-
nues accumulated through eongression-
nj refusal to comply in full with the
provisions of the organic act and now
amounting to more than $4,000, 600,
the House committee proposes to in
crease the tax rate here by two-thirds.
As long as the District money is
permitted to accumulate without ap-
preparation on the half-and-haf basis
in observance of the organic act there
is no conceivable excuse for increasing
the tax rate and consequently the
revenues derived from taxation. Cou
pied, however, with the plan to re-
ieve the government from its fixed
ratio of contribution to District main
tenance, this proposed tax increase
can be interpreted only as a direct
ptactical means of lessening greatly
the amount contributed from the fed
esal Treasury for the support of the
District.
The District tax revenues are now
roughly s9,OO0,0o0. Doubled, they
call for an appropriation of SIS, ,00e, 900,
half from the United States If the
proposed tax increase is voted the Dis
trict's revenues will rise to 81, 5,000, 900.
On the basis of the bill as it is writ
ten and laid before the House the gov
ernment's contribution to District
maintenance, with an $4,000, 600 bud
get, would be $3,oo0,00o. One-sixth in
stead Of one-half!
1t has been often urged in support
of the half and half law that the as
sured effect of its abfogation would be
a material decrease in the federal con-
tribution, and corresponding increase
in the local share, necessitating an in
creased taxation. The present writing
of the, District bill fully verifies this
forecast.
In one respect the action of the COM
mittee is fortunate. 1t plainly shows
in specific terms the assured result Of
it. It is no longer matter of specu
lati0H a6f argument. The committee
sazs; iH effect: "Washington must be
maintained ON a liberal scale; more
money must be spent for permanent
, improvements. But the increased
funds must come from the people of
the District, through higher taxes, and
tks government viii no longer obli-
gate itself to match the local dollars.
We viii raise the taxes, repeal the
guarantee of equal contribution and
put the District on the basis of
eventually, and perhaps very soon, pro-
viding all the money needed for its
maintenance, no matter how heavy the
tThuffen on IFS people may become"
The. .Nistrict is not undeftaxed at
present. That has been proved again
and again in most explicit terms in
cokpafisons with other. cities. If the
District tax rate is increased-the as
sessmest presumably remaining where
iGANtuless Increased under pressure
to add still further to the local
reven6es-the District will be one of
the--fn most heavily taxed commu-
nitiarin the United States. Compari-
SON faiters in the face of such a pros
pect.
The bill as it stands is liberal one,
the most liberal that has ever ema-
mated from the House committee. 1t
mahes large increases in appropria-
tons tQr schools; it provides properly
large increases of salary for municipal
officers; it measures up approximately
to the. Districts needs 1t is distinctly
a good bill in its allotment of funds
But there its merits end. 1t is dis
tinettc bad bill in its inequitable
assumption of a change in the organic
act accompanied by an increase in taxes
which would greatly overburden the
people of the District in order to re-
Heve the United States almost wholly
of its share of District maintenance.
The House must now face this issue
1t has already voted for the abroga-
ton of the half-and half principle in
passing the Mapes bill. 1t did this
against minority report of the Dis.
Fiet committee signed by eight mem
hers; with ninth joining, practically
Half of The committee thus demurring
The appropriations committee, with.
out waiting for the Senate to act, o,
Tor hearing to be held by a Senate
committee, treating the unfinished leg
iflation as law, now goes the limit in
proposing legislation that will radical
y and disastrously change the fisca
basis of the National Capital.
The House District committee minor
ity in its report said:
at is our conclusion that the peo
pie of the District are now taxed fairl,
and reasonably. The amour
ef revenue derived from District taxa
ton, doubled by the addition of lik,
amount from the federal Treasury, il
not more than the needs Ct the Dis