Evening star., 1924-05-04
Evils of Lump-Payment Plan.


the definite proportionate contribution
system of Capital upbuilding; it de-
stroys all relation between the ma
tional and local contributions and,
leaving all taxing power in the hands
of the United States, deprives the un-
against excessive taxation by a taxing
body in which it is not represented.
1t destroys the fiscal peace settle
ment promised by the new organic act
of 1922, and plunges the House and
Senate into the old wearisome wran-
gle, so hurtful to the District, over
the issue of definite or indefinite pro-
portionate contribution toward Capi-
taI upbuilding.
1t teaches a false theory concern
ing the relation of nation and Capital.
1t obtrudes annually upon the atten-
tion of Congress the suggestion of a
large cash donation to the Capital,
as If the primary obligation of Ma
tional City upbuilding were upon the
local taxpayers, and the nation were
only an incidental contributor, a vol
untary and benevolent donor. AS long
as all the assets and revenues Of the
national and local joint contributors
toward Capital upbuilding are in the
hands of the national joint cOntribu-
tor, and as long as all decisions con-
cerning the amounts to be paid by
the joint contributors, respectively,
and concerning the expenditure of the
joint revenues are to be made by the
national contributor, the latter must
in equity, and will. in fact, bear the
primary responsibility of Capital up
building, and the local taxpayers will
be recognized in their true relation as
merely incidental contributors of tax
money, not fixed in amount by them
selves, but exacted at the pleasure of
the other joint contributor.
It reduces to a minimum or de-
stroys any chance of equitable pro
portionate contribution by the United
States in appr propriating and spending
the Districts accumulated Treasury
tax surplus.
It will not cause the District to es-
cape supervision and national con-
tribution cutting by the budget 'bu-
reau. 1t does not increase the GER
tainty Of a national contribution or
fixity in the amount of such contribu-
ton. 1t prohibits increase of the gov
ernmental contribution in an appro-
priation bill, and invites and facili-
y
appropriation bills under the opera
tion OF the Holman rule. 1t does not
avoid frictien-breeding ratio discus
sion, but on the contrary aggrayates
II. 1t does not increase a particle the
Districts power to participate in its
municipal legislature. Congress still
has exclusive power to determine how
much it shall be taxed and by whom
and for what purposes it's tax money
shall be expended.
1t surrenders to the nation its
pledge of proportionate contribution,
which accompanied national seizure
of the Capitals power of self-ta 1ation,
without restoring to the District this
self-taxing power of which it had been
deprived. It's practical effect is to
place q maximum limit on the con.
tribution of the United States, and to
remove the limit entirely from the
contribution of the local taxpayers.
The lump-sum payment for one
year Of $s,ooo,o00, decrease Of the
amount to be facilitated in making ap-
propriations each subsequent year by
the operation Of the Holman rule, is
the only compensation offered for the
hurtful exactions, the surrender of
sound principle and the sacrifice of
material interest demanded of the
local community.
Since vital principles are involved, the
amount Of the initial and possibly final
lumpsum payment will not greatly
concern the Washingtonian. The sug-
gestion that betrayal of the commu-
nifty interest and the sacrifice Of sound
principles could not be considered if
only eight millions were offered, but
that a different view might be taken
II nine or ten millions were rendered
puts the transaction on the lowest
possible plane.