Evening star., 1921-07-02
Surptus and Tax Rate.

Inasmuch as the District during the
past fiscal year raised by taxation
S515,4l6.95 more than Congress per-
mitted it to spend for maintenance.
even at the changed ratio of District
federal contributions. the Commission
ers have concluded that that amount
should he applied to the revenues OF
the coming fiscal year. and have ac-
cordingly ordered reduction in the
tax rate from s1.95 to $1.S2 for each
500 of taxable property. This reduced
rate will yield enough, it is estimated,
with the surplus from last year. to
meet the appropriations already made.
There can be no logical objection to
this procedure. For several years the
District has raised by taxation plore
money than Congress has appropriat-
ed, on either the tifty-fifty or the sixty
forty basis. The result has been the
accumulation in the Treasury. as
District credit. of a sum approXimat-
ing five million dollars. Appeals for
the use of this money for urgent local
needs have been unavailing. Plans for
hts gradual application to large works
of public improvement have been re-
jected. The money has remained there.
Unused. while the District has suffered
for more schools. more water, more
pavements, more police and fire pro-
lection. more everything of municipal
need. Only within a short time has
start been made upon program or
school extensions that have been great
ly needed for several years.
1t is idle TO continue to pile up this
surplus if it is not to be used. either
directly as an appropriation asset, or
Indirectly as a taxation charge. Now
the Commissioners, upon legal advice,
have resolved to regard it as credit.
taking, however. only the immediate
surplus of the past fiscal year. They
would. indeed. In strict logic. be JUS
Titled in considering the entire surplus
as a tax Offset for the current year.
But with wise moderation they have
considered only that slightly more
than half million dollars as an asset
for the purpose of computing the
amount needed to maintain the munich
pal government during this year.
1t is difficult to see how this procedure
can be challenged. The Commissioners
assure Congress that they will have
| money enough, at the present rate of
expenditure, to run the District on the
B reduced tax rate if they are permitted
" to make use of the unexpended balance
4 of the past year. Congress cannot in
/. anything approaching justice say:
. You cannot use your own money for
this purpose. You raised it by taxa
tion at your own risk. the United
States to have the benefit if not the
ownership of it in case we decline to
appropriate all of it for your main
tenance.''
Such a rejoinder would bring the
whole question of the surplus sharply
into focus. Some time ago member
Of the House of Representatives de.
clared that this accumulation of unex-
pended District tax money was myth,
a bookkeeping phantom. That view.
however, gained no credence or sup.
port. But its expression served to re-
veal a disposition in certain quarters
to consider the Districts tax money,
raised by order Of Congress and spent
inadequately at the dictation of Con.
gress, and yielding a large annual sur
plus piling up in the Treasury. as
federal profit in the National Capital
partnership.
The actual relief to the taxpayers
from the reduction will be some help.
But of greater help will be the fact
that the District is not continuing the
foolish practice of raising more money
by taxation than it can spend. and los
ing the benefit of it's own funds to the
tune at present OF nearly fire millions,
while it is suffering for improvements
And current maintenance which are
not adequately granted.