Evening star., 1924-05-17
Tax-Rate Delusions.

ashlngtonian as the most con-
splcuous of tax.shirkins America ns
AS the payer of the smallest tax rate
and as the bearer OF the lightest tax
burden among the residents of the
several hundred American cities And
on the assumption that this ndict.
mcnt is well founded. these congress.
mon pcrsccute with wonderful di-
versity of punitive legislation those
whom under a delusion they de-
nounce as tax-shirkers and mendi.
cants.
For example. the Washingtonian is
accused today of so successfully
Sinking his lax Obligations that he
rays only d tax rate Of s1.2o. TO be
compared with rates running up to
Sl4 in some other cities. and it is
urged that he should be punished off
hand by smashing the whole fiscal
system of the District OF Columbia in
lis relations To the United States and
by doubling the is1ricts S temporary
tax rate and making it fixed and
arbitrary.
We are told that the Districts tax
rate is s1.20. that il is the lowest
among the cities Of the United States
that tax rate Is d reliable yard
stick for measuring comparative tax
burdens and that consequently the
Districts tax burden is also the low
est among these American cities. And
that = further consequence the
Districts tax rate may without in.
justice be doubled or considerably
ircrea sed and that the national con-
tribution toward Capital maintenance
and deN elopment may equita bly, be
reduced or eliminated
The Districts tax rate ls not s1.20
or any other fixed figure. Ii varies
from year 70 year automatically in
accorda with the law OF 1922. In
the last analysis Congress determines
the rate by appropriating more or
less in the District appropriation bill.
since the rate is fixed by the Commits
sioners II such figure as in connec-
lion with other revenues will raise
30 per cent of the total appropriation.
Thus if Congress wishes to increase
the rate 1t will appropriate more for
Capital maintenance and upbuilding
in the District appropriation acts.
The local community is unmistak ka.
bly, absolved from reproach in respect
TO this years s1.o0 tax rate, since it
has in effect pettioned in the interest
q the community for appropriations
which. if granted. would have in
creased the figure Of this tax rate.
But first the Commissioners, in their
estimates. and then the budget bu.
reau. and finally the congressional
committees and Congress itself cut
down the estimates and the appro-
Driations and in exact accordance
with these cuts reduction followed Of
the tax rate which was needed to
raise 30 per cent of this appropria-
tion.
Surely Congress, which last year
thus cut down the Districts tax rate
by inadequate appr ropriations for sat
isfying not only current needs but
the accumulated unmet municipal
needs of the war time, will not itself
this year reproach the District with
this low tax rate as if the District
were responsible.
The proposition to eliminate the
temporary s1.20 rate and to substitute
A fixed arbitrary rate OF 81 or $3.50 or
any other figure involves not merely
simple, uncomplicated tax-rate raise,
but means change of the whole
fiscal system set up by the law Of
Z 1922, since it smashes that system in
a vital point.
The law of 1922 is complicated and
its many parts are so closely inter.
woven that a single tremendously
long sentence is able to carry a multi
tude of its dovetailed provisions.
To change the tax rate provision
, from that of the equitable and easily
adaptable sliding scale system Of the
act of 1922 to the old, arbitrary fixed
rate, doubled in amount is to let
loose a rampaging bull in the Dis
trict's legislative china shop.
incidentally. this proposition. if car.
ried out, would rob the District of
the only provisions OF the COM
promise law Of 1922 which were Of
benefit to it and which the laws
words pledged to it for five years at
least, to Offset the heavy burdens
and the drastic exactions which the
1929. law imposed upon it. The def
mite proportionate ratio, even re-
duced to 60-40. and the sliding scale,
non. surplus producing tax rate were
the Districts conpensations for dras-
. tic and hurtful tax exactions and con:
fscations of revenue.