Evening star., 1922-05-24
The Senate Soon to Decide.

The Senate will soon decide the fate
Of the Distrt 1t in respect to it's fiscal
relations with the nation and in re-
spect to the increase of the tax rate
on intangibles, the increase Of the
standard of assessment from two
thirds value to full valuation, the
shifting of primary obligation for cap
ital maintenance from nation to local
taxpayers, the ignoring of the Treas
iury-conceded five millions accumu-
lated tax surplus of the District, the
threat of increased takes for the next
five years to accumulate a brand-new
surplus so that the District will have
on hand July 1, 1927. enough money
extorted from the taxpayers of pre-
ceding years to pay the Districts
share Of expenditures of 1928 until
such time in that fiscal year as Uncle
Sam chooses to collect the taxes
which he exacts from the 1928 tax
payers.
The Senatei has two courses open
to it. First, it can decide that these
vital changes in the Districts fiscal
system have not been adequately con-
sidered; that the capital community
Is entitled to the opportunity hitherto
denied, to show that the proposed leg
islation is inequitable, unnecessary,
and in reversal of every tradition and
precedent of the Senate in shaping
the Districts fiscal relations; and that
to the end of doing equity it will in
effect refer these controverted legis-
lative issues to the Districts legiSla-
tive committees for more deliberate
consideration by concurring in the
original House provision in the appro-
priations bill, for which amendment
number 1 is substituted. This action
would continue for another year the
temporary 60-40 ratio and the sliding
scale tax rate, under the system
which has been operative for two fis-
cal years. It would leave to be thresh
ed out in legislative committees not
only the matter Of the existing Dis
trict tax surplus, but all the other
vigorously controverted issues.
Or the Senate may be disposed to
accept amendment number l after
amending it to make it more equitable.
The Star has urged that if amend
ment number 1 is to be enacted in
L. acf ha
amended as to express the avowed
purpose of the conferees in propos-
ing it.
For example, the new surplus pro-
posal as it is worded in the amend
ment cannot be construed as iR ac-
cordance with the intent announced
by the conferees in framing it. It is
authoritativeIy explained that the
only intended vitality essential re-
quirement by Congress in this cons
nection is that at the beginning Of
the fiscal year 1928 the District shall
go on the ''pay-as-you-go'' system and
be able to put up its share OF. the cur
rent expenditures in that year, as the
occasion for making them arises.
If Uncle Sam is now disturbed over
the discovery that he is collecting the
taxes which he eXacts from the Dis,
trict too late in the year, so that he
not only pays IN advance his own so
or 40 per cent contribution toward
capital upbuilding, but also makes
advances on his co-contributor' SO or
so per cent of contribution, the rem
edy Of the condition is obvious and in
his own hands. He has only to Change
the date or dates of collecting his tax
exactions. If he has made a mistake
in this connection he has the exclu-
sive power of correcting that mistake.
The conferees indicate that they
favor change of. date of tax collec-
tons, and they do not repudiate the
existing tax surplus of the District,
but favor a joint committee to deter
mine its existence and amount.
+ Let the wording of amendment
number 1 make unmistakably clear
the avowed intent of the conferees.
This amendment is not relieved Of its
terrors by reference to changes of
law which it is suggested Congress
may later make. The wording Of this
amendment should be changed now,
wherever it is essential, to bring about
simultaneously with it's. enactment
the statutory conditions which are
assumed to exist in justifying it.
After announcement of purpose to
put the District on a cash basis July.
1, 1927. and clear definition Of what
is meant by leash basis" the natural
enactments OF amendment number
are a. legislation changing dates Of
tax payment, not for next fiscal year,
which is too soon, but for the fiscal
year thereafter; ~ legislation ap-
pointing a joint committee to ascer-
tain existence or non-existence and
amount Of, District accumulated tax
surplus: 80 legislation requiring the
Commissioners to accumulate in
1925. 1926 and 1s26-7 the surplus,
II any, which may be needed in addi-
ticn to any surplus on hand at that
time, to enable the District to go on
the cash basis July 1. 1927.
There should be no surplus require
msat and no change Of ta1-payment
day in the next fiscal year. There.
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