Evening star., 1921-12-22

substitute bill.
Third-Until Congress shall fix
some other rate, taxes shall be as they
are. except that the~rate on realty
and tangible personally shall be $1.75.
Tax rates are to fluctuate, changing
frcm time to time in conformity with
the diverse views of successive Con-
crosses concerning what is reason
able taxation.
Fourth-'The appropriation of an
amount equal to the unexpended or
unappropriated surpluses Of the Dis
trict revenue shown by the reports OF
the Commissioners t. have been here
tofore accumulated and deposited in
the Treasury of the United States, in
addition to the. estimates submitted
for the next fiscal year, is hereby au-
thorized." Without some eXempting
provision in respect to our tax sur
pluses accumulated under the half
and half law they would by the nation
alizing or confiscatory provision Of
the substitute bill be converted like
future local tax money into national
revenue, and be merged and lost in
the miscellaneous national revenue.
Perhaps the intent of the bill is
to say that while hereafter the nation
will promise to pay nothing for capi-
tai upbuilding that is definitely related
to local taX-money. it will carry out
it's promises in relation to the money
accumulated through congressional
neglect of municipal needs under the
operation Of the half-and-half law in
the past: that it will not make it's
withdrawal of promise of proportion
ate contribution retroactive, but will
close up equitably it's books covering
the half-and-half period before starting
new books or discarding books of ac-
count altogether under the new in
definite, fuctuating system. If this
is the intent. then Congress ought, it
would seem, in this bill to provide for
the meeting of specific unmet .mu-
nicipal needs of the past. not adequate
ly covered by the estimates. such as
those for additional school buildings,
increased water supply and improved
streets, and appropriate for these pur-
poses twice the amount Of the Dis
trict surpluses. in accordance with the
half-and- half law, under whose terms
this tax-money was collected. After
Uncle Sam has thus spent in capital
development the taX-money now held
in trust, to which his promise of pro-
portionate contribution attaches, he
can with clearer conscience enter
the future promise-lacking period,
during which he will continue to ex-
ercise despotic and undivided legisla-
tive power. will make his own the
| local tax-money which he exacts. and
will bind himself to no definite pledge
of capital upbuilding expenditure. II
the spirit and purpose of the original
Jones bill are to prevail in the sur
plus legislation. this provision of the
substitute bill should be elaborated
and made definite along the lines in
dicated.
The substitute bill then removes the
limitation of the Commissioners esti-
mates to twice the amount OF eStlmat-
ed revenue. This limitation is built
on recognition of the half-and-half law
and of the principle of proportionate
contribution. When the substitute bill
destroys the half-and-half law and the
principle of prnportionate contribu-
ton. and eliminates all connection and
relation between tax revenue and es-
Inmates and appropriations. the rea-
son for the limitation ceases to exist
! and the law is automatically killed.
The new law appropriately recognizes
the fact of this death.
The substitute bill concludes with
exemption of So 900 in the assessment
of improvements on real estate. This
is a new tax provision not in the orig
inal Jones bill. which is to be decided
on its merits 1t reflects the single
tax idea in discouraging refusal or
failure to improve vacant land, and In
rewarding such improvement. with the
small house owners as the special ben
eticiaries. 1t deserves thoughtful con-
sideration by Congress.
For many years organized Washing
ton. through the Citizens Joint Fiscal
Committee. which combines nearly all
of our great civic bodies, has been
fighting desperately. and with some
success. for the definite proportionate
contribution system Of financing the
District. and against the indefinite,
fiuctuating system. Now. without the
slightest warning of danger. in mo-
ment, in the twinkling of an eye,
without even the opportunity to sound
a call to arms for defense, defeat has
come. not in pitched battle, but
through a change of mind Of our
Senate friends.
Who can wonder that the capital
community is shocked and somewhat