Evening star., 1921-02-15
No Solution of Surplus Problem.

The conferees on the District ap'
propriations bill have agreed on the
cost-apportionment between nation
and capital proposed by the House.
and have cut out both the 5000 ratio
and the wise and just legislation pro-
posed by the Senate to prevent sur
pluses or deficits in the future and
to begin to dispose equitably for the
welfare of the District of the tax sur
pluses of the past.
To avoid a deadlock this year the
two houses have run in the same
groove which was discovered to be
available to evade last years dead
lock. If the Senate by refusing to
Weld to the 60-40 ratio had made nee
essary a continuing appropriation
resolution the 60-40 ratio of the cur
rent fiscal year would in any event
have carried over into 1929; and
the increased appropriations for
1922 might have been lost to the
District without restoring or making
applicable the $3.50 ratio.
High hopes had been entertained
that If the House had it's own way
absolutely concerning the 6040 ratio
it would agree to the proposed wise
and fair solution of the problem of
tax surpluses and deficits. and might
also assent to the equitable expendi-
ture to meet accumulated District
needs of some part of the Districts
tax surpluses of the past. And the
District is profoundly disappointed
that a compromise in the matter was
not reached.
While the adopted provision does
not touch the question of disposing Of
surpluses of the past collected under
the $3.50 ratio, it is so worded as to
prevent either a real surplus or a
real deficit in the two fiscal years be-
tween 1920 and 1922. The provision
on this point reads as follows: "If the
estimated net revenues Of the District
Of Columbia Of the fiscal year ending
June 30, 1922, are not sufficient to
meet the proportion of the appropria-
tons for that fiscal year charged
against such revenues by this and all
other acts or which may be estimated
to be charged against such revenues
by acts that may be approved during
such fiscal year the Commissioners
Of the District Of Columbia shall in.
crease the rates of taxation on real
estate and tangible personal property
sufficiently to make up the difference:
provided, however, that such rates Of
taxation shall in no event be less than
IL per cent nor more than per cent"
The Commissioners are required to
levy q tax on realty and tangible per-
sonalty which will cause the Districts
total revenue to be 60 per cent of the
total District appropriation. II the
Commissioners have guessed too low a
tax rate and less than SO per cent Of
the total District appropriation was
raised by local taxation would that
deficit be forgiven by the nation? No.
It would go over into the succeeding
year as a debit to be deducted from next
y yC<sA . oNd1iooiC OlStiICt revenue.
OF course. what is sauce for the goose
Is sauce for the gander. If a deficit
goes over into the succeeding year as
q debt, surplus goes over on the
same equitable principle into the sue
ceeding year as a credit.
Congress authorizes only the col
lection by tax levy of so per cent of
the total District appropriation fixed
by law. II the Commissioners put the
tax rate too high and they collect
more than the so per cent ratio of
appropriation demanded from them the
tax money which the Commissioners
thus collected over the limit fixed by
the law would clearly, it seems. go
automatically into the category Of Dis
trict tax revenue available to meet
the Districts share Of current appro.
priations under the 60-40 ratio in the
succeeding year.
The surpluses arising under the
S0-40 ratio are thus wisely disposed of
or prevented. Will not this Congress
in the conference on the Mapes bill
or the next Congress be as wise and
fair in legislation affecting the sur.
pluses of the past, created under the
$3.50 ratio?