Evening star., 1923-10-25
1t Limits Capital Contribu.
ton of Nation and Leaves
Unlimited That Exacted
From Taxpayers.
NO 0FFSETTING BENEFIT
TO INJURY INFLICTED
Bond Issue on 60-40 Basis OF
Treasury Advance to Solve
Present Fiscal Problem.
Editorial Correspondence OF The Star.
THEODORE w. MOVES.

While the specific injuries which
! have been pointed out will be inflicted
upon the community If this bill be-
| comes law. the offsetting benefits
claimed for the bill are found on
| analysis not to exist.
Broadly, Washington is tempted to
surrender its safeguard of national
proportionate contribution by the as
surance that through lump-sum
| payment system it will escape the
| tender mercies of the budget bureau
| and will win the privilege. not Of
taxing itself without restraint. but
| Of being taxed by Congress without
limit for the upbuilding of the ma
tlon's city.
Washington's need OF large appro-
priations for municipal purposes to
| remedy neglects and omissions of this
character during war time and the
| effort of the nation to economize in
| time of peace by cutting down its
| war and reconstruction expenditures
are used in combination to induce the
District to give up proportionate con-
tribution by the nation to Capital
! upbuilding and to propose or TO as
| sent to the substitution of lump
| sum contribution by the nation in
, it's stead.
/ 1t is suggested that under this ar
rangement tho budget bureau viii
no longer have any interest in cutting
down congressional taxation of the
| District and congressional expendi-
ture of the Districts tax money 1t
| is true that by destroying the system
| dpfinif1 "a frih hIvf ~
| the safeguard of the District tax
| paYars against excessive and Unjust
| taxation by a taxing body in which
they are not represented will also be
| destroyed: and the Districts material
welfaregs could suffer no more. vital
| Injury. =
Budget Bureau Unacceptable.
1t is also suggested that there would
| be immunity from budget bureau cut
ting down OF Uncle Sans Capital up
| building outlay if the expenditure
were made In lump sum instead
OF as a proportionate part of the Dis
trict's total municipal appropriation
| But this suggestion will not stand
| analysis. If Uncle Sam is compelled
| by this years fiscal conditions to cut
| ing his outlay on National Capital
upbuilding. he will obviously make
| this retrenchment whether in order
to do it he reduces lump-sum con-
District outlay, of which he pays a
proportionate part Indeed. IL is
easier to make this direct specific
reduction than indirectly by cutting
prIa tions.. There is greater fixity to
the definite proportionate contribu-
ton than to that by a lump sum, 1t
| is far easier for those who think that
the nation should pay nothing today
toward Capital maintenance and
u
tirely the annual lump sum than to
change the ratio of proportionate
contribution.
Infiicts q Double Injury.
The practical effect Of the lump
! sum bill, destroying the 60-40 relation
between the national and the Capital
community contributions toward ma
tional city upbuilding, is to place a
maximum limit on the contribution OF
! the United States and to remove the
limit entirely from the contribution
of the local taxpayers.
Indeed, the announced purpose OF
! the proposed leEfsIntfon In to enable
n taxing body I'm which the District fs
not represented to increase the local
burden of taxation at its pleasure un-
checked by the existing requirement
thnt every such increase shall be re-
hected In some measure In national
taxation for Capital upbuiIding.
Inc maximum ndIlOIldl COHITlDutlOtl
is made definite during the time in
which Congress refrains from dimin
ishing it; but all limits are declared
off in respect to the local contribution
and it remains definite only in the
certainty that the local tax burden
will be largely increased; and that
| the local taxpayers will not partici-
pate at any time in the decision of
| the amount OF the increase. the
methods of taxation by which the in
! crease is secured and the purposes
| for which the tax money is spent
Under the 60-40 ratio of contribu
ton every dollar of increased taxation
of the unrepresented District means
some increase of national taxation
for Capital upbuilding. Under the pro-
| posed legislation every dollar of in
| creased taxation of the District means
| a corresponding reduction of the
amount necessary to be devoted from
| national taxes to Capital upbutlding.
Under the 6040 ratio plan there is an
equitable self-imposed check upon ex-
cessive and unjust taxation by the na-
| tional legislature of the unrepresent-
ed and impotent Capital. With this
self-imposed check removed and with
! every tax dollar exacted from the
/ District reducing the necessary tax
! dollars to be spent upon Capital up
| building by the nation the obvious
| tendency and by some the avowed
| purpose of the proposed legislation is
| to decrease the national dollars of
| Capital contribution eventually to moth
| Ing
| How to Solve Our Fiscal Problem.
| The solution of the Districts fiscal
| or appropriations problem of today Is
not to unsettle the fiscal relations
issue just settled:. not to sacrifice the
sound fiscal principle upon which the
| Capitals welfare is based, but to bor-
row money bond issue to tide over
/, the period when the United States
| is impecunious and when the Capitals S
unmet municipal needs, accumulated
! in war time, demand for their salts
| faction larger immediate expenditures
| from the Capitals joint contribution
| fund than the United States thinks 1t
1 can afford to make.
| A Wise and Sound Bond Issue.
Under varying conditions bond is
sue is at one time a blessing and at
another curse. If it raises money
| for specified municipal objects-great
projects of permanent Capital de-
yelopment and vital urgent needs of
municipal equipment-which are now
| under the law paid for under the 6o-40
and tho limited GfafaS and he