Evening star., 1922-05-02
All Taxing Power in Congress.

1t is suggested as an attractive fea-
ture Of the proposed new system of
fiscal relations between nation and
capital that the fixing of the tax rate
Is placed in the hands of the Commits
sioners. But analysis :of the proposed
legislation discloses no real surrender
Of taxing power by Congress. 1t is pro-
posed that Congress shall nearly dou.
BILE the tax rate on intangibles now,
and after five years the Commissioners
may increase this rate. but must not
decrease it. The factors which deter.
mine the figure of the sliding scale tax
rate on realty and tangible personality
are determined by Congress and not
by the Commissioners. Congress de-
termines how much money shall be
spent for capital maintenance and de-
velopment and appropriates it. Con-
gress fixes the standard. of assessment
valuation, whether SIS 2-3 or 100 per
cent. Congress decides what percent
age. Of the total appropriation the Dis
trict taxpayers shall pay, whether so
per cent or 60 per cent. The rate
fixing power given to the Commits
Eioners is merely. the empty privilege
of making a mathematical calculation,
the controlling factors in which are
fixed by Congress. Thus the Commits
sioners fix as tax rate today on
realty and tangible personally the
percentage figure. which when applied
TO the Assessment roll and combined
with other District revenues will pro.
duce go per cent. of the District -appro.
priation or estimated appropriation.
The proposed new tax law does not
seem to add any real power to, the
Commissioners privilege of figuring
the percentage relation OF one amount
of money to another amount, both
amounts being fixed directly or indi-
rectly by Congress
1t is also suggested that the Com
'missioners can cut down the annual
tax burden by refraining from sub,
mitting to Congress in these estimates
the full needs Of the capital. Il Con-
gress treated. the estimates as a bud
get apportionment of a definite sum
among specific municipal needs and
appropriated accordingly. the RESPONSE
bility upon. the Commissioners would
be heavier. But Congress has never
felt itself bound by the estimates, ex-
items which did not appear in. the
estimates;f and doubtless it never will
Under the. circumstances the duty
of the ComfnissioHers has been to pre-
sent to Congress-.a full statement of
annual iaonscipai needs. for r1,ainte-.
nance and for dut1ays on urgent per-
manent improvements, like new con-
duit or many new school buildings.
Congress then selects from this full
list the items for which it will appro-
pirate and Axes the specific amounts
Of appropriations. -, |E.-
The District taxpayers have borne
and will bear with resignation and
even reasonable cheerfulness an in
creasingly heavy burden of taxation
under the sliding scale tax rate. pro-
vided their tax money is economically
spent in satisfying urgent municipal
needs and in meeting their share of
the cost of maintaining and develop
ing the capital. =.
But in these days of heavy taxes
and high cost of. living they resent
the proposal that for five years they
shall pay TWO Or three millions a year
In increased taxes on realty and in:
not to meet any of the ur-
gent manicipar needs. but to lie idle
in the Treasury to protect Uncle Sam
against the self.imppsed obligation to
make to the District slight temporary
advances. With all the taxing and
legislative power in his hands, gncle
Sam needs no protection against any
body but himself. i -.
.y:,r,s