Evening star., 1922-06-05
Clarity New Fiscal Law :.
By Non-Hostile Changes

| sanctity of q conference report in
that the conferees feel bound to ad
here to 1t. unless agreement to
change is given by both House and
Senate cohferees. And both sets of
conferees hesitate to take the initi-
ative in suggesting any changes
whatever, even though discussion dis
closes that certain alterations will
obviously clarity, improve and
strengthen the proposed legislation in
giving practical effect to its avowed
purpose.
Under these conditions 1t is prob
ably hopeless to expect any modifica-
tion OF the determination Of the con-
fereeS to impose upon the District
such injurious legislation as, for ex-
ample. arbitrary Increase to nominal
full valuation of realty assessments
and two-thirds increase of the tax
rate on intangibles. though in the
past the District. always given here
tofore the opportunity, has shown
the unfairness and unwisdom of
these impositions and has success
fully resisted them.
The confereeS are SO committed to
the proposed new fiscal system that
II Is probably also hopeless to urge
the Senate to put aside for a time the
hasty and injury threatening new
legislation and to concur in the
Houses original provision number one.
which continued the temporary 60-40
ratio for another year.
X X
Certain proposed amendments of
amendment number one are, however.
so distinctly useful and necessary in
giving practical effect to the intent
of the conferees that conference
agreement in respect to them seems
reasonably certain. If any conferee
will venture to bring them up for
informal conference consideration.
For example. an avowed purpose of
the legislation is to put the District
on "a cash basis" in the fiscal year
beginning July l, 1927.
The reason that the District is not
now on "a cash basis" is because
Congress has fixed the Districts first
and only tax-payment day near the
end OF the fiscal year, instead Of near
the beginning of the year.
To put the District on "a cash
basis" the first and perhaps the only
thing necessary to do is for Congress
to change its mind about the date
when it will require District taxes
to be paid and to direct that in some
fiscal year before July l. 1927. the
of taxes within three or four months
Of the beginning of the fiscal year.
y X +
Amendment number one makes no
provision Of this simple and effective
remedy of the condition which 1t
avowedly attacks. The change OF
tax-paying dates should be enacted
by amendment as an integral part of
amendment number one. IL should not
go into effect too suddenly. as in the
next fiscal year, but later-in fact.
| in any year prior to 1928.
For the system Of tax payment in
semi annual installments is not pro-
posed as beneficial in itself and on
it's merits, but solely TO meet Uncle
Sans sudden desire to put the Dis
trict on "a cash basis" The result
of having two taxpaying dates in
stead of one is to double the book
keeping and other work connected
with tax collection and to double the
chances of inadvertent delinquency in
taxpaying 1t is not even proposed
to encourage early tax payments by a
slight discount for full payment
early in the year, as provided in
many states with the semiannual
taX-payment plan.
Therefore the District. while as
senting to the plan of taxpaying in
semi annual installments in order to
put the District on a cash basis in
1928, urges that the new system be
not put into effect at once, and not
earlier than the fiscal year beginning
July /, 1924.
The plan proposed by amendment
number one Of putting the District
on a cash basis" is to create a new
surplus In the fiscal years ending
June 80, 1923-4-5-6-7. so that the
necessary amount to the credit Of the
District shall be in the Treasury July
ii, 1927. The conferees concede or
agree that If tax-payment dates are
changed and If the existing excess
fund of five millions of accumulated
and unappropriated taxes is not
eaten up in established counter
claims of ancient resurrected alleged
Indebtedness of the District to- the
United States there will be no need
OF any new surplus whatever.
Amendment number one ought,
therefore, to be so amended that the
Commissioners will not be required
to give any consideration to the ac-
cumulation Of a new surplus until
surplus is determined. Under the
concurrent resolution now pending in
the House, which is to be passed
either as part Of amendment number
one or separately and earlier. the
amount Of the old surplus will be
therefore, by amendment, to cenfine
consideration of a new surplus by
the Commissioners to the fiscal years
ending June 80, 1925, 1925 and 1927.
when 1t will be clear whether any
new surplus whatever will be neces-
sary.
Amendment number one provides
that on July l. 1922, the treasurer of
the United States shall open an ac-
count showing all receipts and dis
bursements Of the District Of Colum-
bia. The first item of that formal
account should acknowledge receipt
of cash and credits shown by the
books of account of the District Com
missioners to belong to the District
at that date. including any excess
fund of collected but unappropriated
and unexpended taxes reported by
the Commission and approved, il
currency Amendment number one
should be so worded. by amendment
If necessary, as to transfer all Dis
trict cash and credits reported by
the Commissioners to the formal
separate account with the treasurer
of the United States.
The avowed purpose of amendment
number one. is to prevent the uncom-
pensated advance by one Joint contrib
utor toward Capital upbuilding of CO.
contributors share of the cost of
Capital maintenance within the limits
of the fiscal year. This can be ac-
complished either by charging interest
on such advances or by prohibiting
them as unlawful. Amendments
submitted suggest the greater wisdom
and fairness of the interest ex-
action on such advancements for
the future, interest to be allowed on
any monthly advancement within the