Evening star., 1921-10-26
Sound Surplus Deficit Legislation


The Jones bill regulating District
finances and taxation, now pending in
the Senate District committee, is some
times spoken of as If it dealt solely
with the ratio Of contribution of nation
and capital toward capital mainte-
nance and development. OF course. the
vital issue involved in it is the clash
between the $3.50 regular, permanent
ratio to which the Senate adhereS and
the new temporary 60-4O appropria-
ton bill ratio, confined by its terms
only to the appropriations of a given
year, upon which for two years the
House has successfully insisted.
But the Jones bill, outside of the
vital issue. proposes wholesome, con-
structive legislation, which Will put
District taxation on sound, business
Ike basis and dispose automatically or
he troublesome problem of tax sur
pluses and tax deficits.
If it is impossible at this time Tor
the Senate and House to agree upon
permanent ratio for the future, either
at $3.50, 60-4O or Il compromise ratio
ot 55.45, it may be expedient to post
none the struggle over the permanent
ratio. and to separate and enact quick
Iy the other provisions of the bill.
If the propositions of the Jones bill
which the Senate has approved are
made general in their application, so
hat they will fit in with any ratio OF
contribution, whether $3.50. 60-4o or
55-45, and are made in other respects
70 conform to the recent action OF Con-
sress as in respect to 4 sliding scale
II rate of taxation. they will read as
follows:
That the Secretary of the Treasury
IS authorized and directed to advance
on the requisition of the COMMISSION :
,rs of the District of Columbia, Tnaue
IN the manner prescribed by law. out
Of any moneys in the Treasury OF tne
United States not otherwise apPro-
priated such sums as may be neces-
ssary from time to time to meet the
General expenses of said District. as
authorized by Congress. and to REIN :
hurse the Treasury for the portion or
said advances payable by the pistrici
IF Columbia out of the taxes ana
revenues COiictttu lol the
he government thereof. If IN any
wear the taxes and revenues of the
District OF Columbia shall be insult
ficient to reimburse the Treasury for
he portion o. said advance payapie
nv the District of Columbia. such un-
paid advance shall be reimbursed to
said Treasury out of the revenues OF
he District of Columbia of the sue
ceeding year or years. If in any year
the taxes and revenues of the Dis
;rict of Columbia shall be more than
sufficient to reimburse the Treasury
for the portion of said advances pay
able by the District of Columbia such
surplus.of revenue and all uneXpended
or unappropriatedy surpluses of the
District revenue shown by the reports
# said Commissioners. to have been
heretofore accnmulated and deposited
N the Treasury of! the United States
shall be held in the Treasury as a
rust fund for the benefit of said Dis
rrict and available as revenue of the
District of Columbia for meeting the
portion of appropriations payable by
said District in the succeeding year
or years. That the per centum of ap-
proved estimates to be levied and as
~essed under the act of June IL, 1878.
upon the taxable property and privi-
leges in said District shall be raised
by the imposition of such rate of
taxation on realty and tangible per-
Sonal property as the Commissioners
shall ascertain to be necessary to
raise annually. in combination with
other District tax revenues and unex-
pended tax surpluses of previous
years. sum sufficient to meet the
proportion of expenses to be paid by
the District of Columbia under exist
ing law: Provided, however, that such
rate Of taxation shall in no event be
less than " per centum, nor more
han per centum.
Congress should take up and pass
nf tln al,
,iisposes of the problem of surpluses
Ind deficits, even if it cannot agree
finally at this time on a permanent
ratio of national and local capital con.
tribution, either by retention of the
legal existing ratio of $3.50, or by max
ing permanent the temporary 60-40
latio, or by compromising on new
J5-45 ratio.
The provisions Of the Jones bill are
wise and just, and should be enacted
quickly, whatever ratio of cOntribu.
tion Is to be applied.
II enacted, this legislation will place
among the statutes wisely constructive,
wholesome, just and vitally needed law,
for which the District has long been
pleading. 1t will make the law conform
20 the present practice Of financing the
District. 1t will cause unexpended
surpluses of District tax money to go
automatically into the class Of District
revenue. available for appropriation as
such In succeeding years. By its flex.
ible tax.rate provision it will reduce to
4 minimum the chance Of any material
deficit, and coordinate this provision
harmontously with the other sections
Of the proposed legislation.
The system Of District financing
proposed by this bill adapts itself to
whatever relation of definite proper.
1ionate contribution between nation
and capital Congress may hereafter
adopt.
The Senate ought quickly on report
n the District committee to repeat its
approval Of this legislation. which it
mas already twice approved in sub
stance.
II the House will strip itself OF
prejudice and give unbiased considera'
ton to this proposed legislation on its
merits an equitable decision will be
quickly reached.
Lord Northclife at Manila.