Evening star., 1922-02-27
Total Upset of Stability.

Total Upset OF Stability.
1t is argued that fixed tax rate.
Ike that proposed by the Carraway-
Jones bill, gives greater promise Of
stability and is less subject to changes
avoiding the point Of order). by rider
on appropriation acts, than the definite
ratio of proportionate contribution. 1t
Is pointed out that the House has
changed the ratio temporarily from
$3.50 to 60-40 by rider on appropria-
tion bills, without need of a special
rule and avoiding the point of order,
through application of the Holman
law. since every increase of the per
centage ratio to be paid by the Dis
trict decreases the amount to be ap-
rropriated and paid by the national
government. Attention is also called
to the fact that the tax rate has not
been directly attacked in an attempt
to increase it in the District appropria-
tions bill.
From these facts it is argued that
the principle of definite proportionate
contribution can safely be abandoned
and repudiated and perfect reliance be
placed upon a tax rate fixed today as
a safeguard against change by rider
on appropriation bills.
But the tax rate is now prevented
from increase by rider under the Hol-
man law only by reason Of the exist
ence of rule of definite proportionate
contribution. If there is a fixed rela-
tion between the taxes collected from
the District and the contribution paid
by the government. every increase Of
tax rate increases the national as we'll
as the local expenditure, and Is thus
protected against increase by rider on
an appropriation bill through applica-
tion Of the Holman act.
If, however, the definite proportion
decentralization provision is abolished
az proposed by the Carraway-Jones
bill. the stability of the tax rate is at
once destroyed and it becomes subject
to increase under the Holman law by
rider at any time on an appropriation
bill. since every increase Of our tax
rate will then reduce the appropria-
tions and expenditures of the national
government for District purposes.
So the net effect of the Carraway-
destroy all stability and to make the
relationship between nation and cap
ital and the amount of local tax
payments fluctuating.- uncertain and
tickle. The organic act creates the
definite proportionate contribution
principle and fixes also the tax rate.
The. Carraway-Jone proposition, with
the avowed purpose Of helping to
promote the local welfare, abolishes
the definite ratio and renders uncer-
tain the fixed tax rate.
It leaves the amount Of District
taxation to the whim Of each recur-
ring Congress and tempts to increase
of tax rate by rider on appropriation
bills, since every such approved in
crease reduces the necessary national
appropriation and under the Holman
law escapes the point of order.
Enactment Of the Carraway-Jones
bill, either irregularly as a legislative
rider of the appropriation bill or regu-
larly through the District committees.
will release the United States from its
self-imposed promise to contribute a
definite amount annually in meeting
it's obligation of capital upbuilding,
and will leave that amount uncertain
and fiuctuating, on the same basis as
before 1878. But this bill, If enacted,
will not return to the District its
power which existed before 1873 Of fix
ing through self-taxation the amount
of its own capital contribution. The
nation will continue to exercise the
power taken in 1873 to tax the Dis
trict as it pleases. but is freed from
the limitation imposed upon excessive
local taxation by the obligation under
the organic act Of correspondingly tax
ing itself.
If, however, the nation is not to
share definitely in municipal tax-pay-
ing, the nation ought not in equity to
fix the amount OF local taxation. II
the local community is to raise sub.
stantially all of the local revenue it
must on American principles tax it.
self. determining for itself how much
shall be raised and by what methods
Of taxation. and for what purposes
the tax money shall be expended. Un-
der these conditions there can be no
"fair" or reasonable local taxation
imposed by an alien body in which the
faxed are nof renreserted