Evening star., 1922-04-03
Wise Use of Surplus.

Wise Use OF Surplus.
If in the District appropriations bill
conference the Senate yields to the
Houses contention for the 60-4O ratio
and for a sliding scale rate of taxation
the House should reciprocate by yield
ing to the Senates contention concern
ing the wise and fair disposition of the
Districts accumulated taX-surplus.
Elsewhere on this page the facts and
reasoning which establish undeniably
the soundness and the equity of the
'Senate's contention are elaborated.
The House leaders now almost with
out exception concede that the District
1ax-surplus is not Il myth. but a con-
crete fact, raising distinct obligation
not to be waved aside. If the 6O-4o
ratio is to be made permanent, why
not tackle also the surplus issue, dis
pose of it equitably, and solve fully
and for d generation the Districts
troublesome financial problem?
1t is not necessary or perhaps de-
sirable to apply this surplus to the
payment of current expenses with the
effect of reducing the current tax rate.
After the District has been reasonably
taxed to raise so or 60 per cent of the
amount which Congress will eNpend
for current maintenance and develop
ment there are several large pernla-
nent public improvements which re-
quire I1 1o~rayy;Ies far beyond the
amouEt fi.r can be reasonably OBJ
tained ~ ;sxation from the District
even Oh the bJ-4G ratio. For example,
there are the increased water supply
project and the ten-milliondollar
school buildings program, either of
which can easily absorb the whole sur
plus, using it to pay the Districts $
share of this expense.
The plan of applying the unex
pended District tax surpluses of past
years. doubled under the half-and-half
law which created these surpluses, to
erect necessary additional school build
ings is logical, sound and fair.
Washington needs the immediate
expenditure of millions of dollars in
new school buildings. Today's need in
this respect represents the accumu-
lated unmet needs of q series of sue
cessive years, including the war time
Under the half-and-half law the
money to meet this, with other munic
ipaI needs, was collected. SO far as the
local taxpayers half was concerned
But absorbed in war activities and in
the raising of money to win the war.
the nation failed to put up its half of
school construction money and neg
lected to appropriate money to meet
fully the school needs.
Thus year after year the neglected
new school building needs accumu
lated and increased; and the Districts
half of the money to satisfy these
needs, being unappropriated by Con-
gress, also accumulated.
Now, the war being over, we are
about to spend the millions necessary
to satisfy these accumulated school
construction needs. Since the amount
of money needed for this purpose is
much too large to be taken entirely
from current revenues, what is more
natural or fairer than to apply to this
need the Districts unexpended tax
money Of past years, raised in part
for this very purpose. and doubled for
this use by the addition of the ma
tiOn's contribution under the hall. and
half law?
If Congress had spent this tax
money to meet actual new school
in 81
when the money was collected, it
would, of course, have contributed the
same amount for this purpose under
the half-and-half law. Does the fact
that Congress neglected to meet these
school needs as they arose and permit
ted the District tax money collected
for this purpose to accumulate unused
and failed to appropriate in accord
ance with the half-and-half law in
these years have any tendency to
justify refusal to meet it's equitable
obligation of half-contribution when
Congress comes to do now all in a lump
what it ought to have done in INSTALL
ments?
Can congressional neglect Of duty
release it from legal and equitable
obligation?
OF course, Congress would never
think of putting Uncle Sam in the po-
sition Of deriving benefit from his own
legislative neglect at the expense Of
his ward, whose money affairs are alb
solutely and solely within his control.
No person is permitted and Uncle
Sam will not permit himself to take
advantage of his own wrong.
Men detached from the bureau of
engraving and printing naturally wish