Evening star., 1922-04-28
Tax Ext0rtion.

~->-
ported by the conferees has two good
features: Q) 1t seems to make per-
manent the definite proportionate con-
tribution plan in the fiscal relation OF
nation and capital. Even the 6O-4O
ratio, which is substituted for $3.50, is
better than no definite ratio at all. 1t
Is to be noted, however, that the con-
ferees except from the application OF
the 60-40 definite ratio "such items of
expense as Congress may direct shall
be paid on another basis" Under this
exception Congress could lawfully de-
clare that every item of an appropria-
ton bill should be paid 100 per cent by
the District. Is not the self-imposed
obligation to contribute in definite pro-
portion first recognized and then with
drawn? Does not the exception de-
stroy the definiteness Of the definite
ratio and make the provision a de-
= fusion and a mockery? (2) An unusual
percentage of Senate increases in vital
municipal items over the confessedly
inadequate provisions suggested by
IH0 I1OuSS llcS bCCA ~
conferees. It looks as if approximately
as much would be appropriated for all
purposes for next year as for the cur
rent year, and that water supply In
crease, schools and streets would re-
csive some of the attention they de-
mand in the interest of adequate and
wholesome capital maintenance and
DEVELOPMENT. For this consideration
Washington is gratefully appreciative.
The bad features of the bill are
ma ny. QJ It changes the standard OF
assessment unnecessarily and hurt
fully. The District assessors apply the
present two-thirds value assessment
basis so conscientiously and faithfully
that no assessment standard in any
city Of the United States is higher. So
called full assessment valuation means
anywhere from 80 to S5 per cent in
the list of American cities. In Wash
ington it will mean 100 per cent. II
the tax rate is correspondingly cut
down the revenue result will be the
same, and the hurtful disturbance OF
assessment standards will profit moth
ing. But the new and excessive tax
impositions forbid this corresponding
lowering Of the tax rate. If the tax
rate remains the same the realty tax
bur0en Of Washington will be in
creased so per cent, and will be far
greater than that of any comparable
city of its class in the whole country.
(2) The tax rate on intangibles is in
creased 66 % per cent, or from to 8
mills. After thoughtful and deliberate
consideration Congress cut this rate
from mills to 3, putting the District
In approximately the same class as
Maryland, Minnesota. Pennsylvania.
North Dakota, etc. But the scope Of
intangibles to which the tax applied
was broader in the case of the District
than in any of these states. Now
hastily, unexpectedly, without hear
ings or warning, this personal tax
burden upon permanent Washing
tonians who cannot escape it by
exodus from the District is nearly
doubled. :, The list of intangibles to
which the tax is applied is broader
than in the other states in this class,
and the increased rate is higher.
Washington was formerly, before in
tangibles were taxed here, one of the
lowest of American cities in personal
tax burden: under the present law it
ranks creditably; with this increase it
will be among the highest. Anywhere
else than in voteless, unrepresented.
impotent Washington the abrupt in
crease Of the personal tax burden by
66 2-3 per cent would cause a revolu-
ton, political or otherwise.
(3) Why Is washington's tax burden
thus grossly and unbearably increased
In respect to both realty and person
atty? Is it to, enable Washington to
nay its share of the cost of meeting
the accumulated unmet needs of the
wartime both in maintenance items
and in great and vitality necessary per-
manent improvements? Is it to pay
for more school buildings, better
streets or increased water supply?
No. Uncle Sam proposes to ex-
tort from the District taxpayers of
the next five years. after he has col
lected from them 60 per cent of the
current expenditures for maintenance
and Improvement outlays, an extra
$3,000,000 annually. not to be spent
upon capital needs in capital develop
ment, but to accumulate in the Treas
ury unused, in order that Uncle Sam
may at the end Of five years have in
hand a years tax contribution of the
District paid in advance, so that by no
+. chance. shall Uncle Sam make in any
part of any fiscal year any advance,
even for a few months, Of money on
capital account, even if it is to be reim-
bu~saS hefn-e the wears end. That sys-
tenn Of advances was. however, con-
templated by the act Of 1873 and has
been accumulated in all the recent
Senate proposals, which have empha-
sized the primary obligation Of the
nation in the transaction and the
secondary obligation of local taxpay-
ers to reimburse. This foundation
principle Of the act Of 1878. for which
the Senate has strongly stood so many
times, and never more vigorously than
recently. is thus to be surrendered alb
solutely by the Senate. and the sur
render cfystallizes in this outrageous