Evening star., 1924-05-19


20 be refused discriminatory to
Washingtonians and whenever some
palpable injustice is to be put over to
the injury of the impotent Washing
tonian the habit is forming among a
little group of our legislators of
soothing conscience and of suggest
ing justifying pretext for slurring
and hurtful discrimination against
the Capital community by imputing
to the Washingtonian a phenomenally
low tax rate, conspicuous undertaX-
alton and a mendicancy which holds
a beggar's hat constantly under Uncle
Sans nose.
This undertaxation Indictment is
based upon the following assumptions:
l. That the Districts definite fixed
tax rate on realty and tangible per-
sonalty is $1.2O.
2. That the tax rate is on it's face
almost inconceivably low. lower than
that of any other city, large or small,
in the United States.
3. That state laws directing full
value assessments for taX-leVy pur-
poses are obeyed or enforced, and
that the tax rate is consequently
reasonably reliable standard of measur-
ing comparative tax burdens.
4. That, measured by the tax rate
standard the WaShingtonian is gross
ly undertaXed; and is so deserving of
that he may without Scruple be de-
MED any of the equities or decencies
of fair play to which he would other
wise be entitled.
The Capitals Reply.
Washington replies:
I. That the District has definite
legal regular tax rate. fixed by law.
at S1.2O or any other figure. That
under the law it's tax rate varies from
year TO year in accordance with the
appropriations for Capital mninte-
nance and upbuildinG made by Con-
Eress. That if Congress had last year
appropriated for the District $4,000
600, the total of D. c. bureaus esti-
mates of the amount necessary to meet
adequately the Capitals municipal
needs, instead of appropriating Oet
us Say) approximately ten or twelve
millions of dollars less than the
original estimate, the District tax
rate would have been automatically
increased that Washington welcomes
an increased tax rate if made in ac-
cordance with the act of 1922 with
the result of providing adequate ap-
preparations for meeting neglected
and accumulated needs of the war
time, for satisfying current needs of
Capital maintenance and for enabling
the Washington of today to contribute
it's part toward great permanent i'm
provementS to be completed in the fu-
ture; that Washington protests, how
ever, against destruction of the wise
and fair sliding scale tax rate under
the law of 1922 and the substitution
of a fixed and arbitrary tax rate in its
place. fixed as to figure of rate with
out deliberate and Intelligent con-
sideration: that Washington protests
against the double injury of reproach
by Congress of low tax rate, when
Congress is solely responsible against
low tax rate, and for hostile and hurt
full legislation by Congress to punish
the District for a low tax rate for
which it is not in any degree reSpon-
sible
=. That WashingtOn's temporary
tax rate of $1.2O, which measures
congressional Willingness to npprO-
pirate and not WaShinEtOn's willing
ness to pay, while 1t is in the class
of rates which are low and need to
be cOunterbaIanced e by high standards
of assessment. is not incOnceivably
or indcfensibly low. A school of
economists argues seriously and Wig |
orously that the tax rate on realty |
should not, to produce the best re- |
suits, exceed 1 per cent on absolutely |
full valuation. The great state of |
Ohio enacted a law which forbade the |
levy in the state of more than l per |
cent on the full value of realty. The |
s1.20 rate, though not adequate under
the law of 1922 to produce the needed |
appropriations for the Capitals main |
tenance and development, and there |
mans, is vindicated in the abstract by
the political economists referred to
and by the Ohio Legislature, and is
adopted in the concrete in the prac-
tice of some cities, so that the rate is
not the smallest among Americas |
cities.
Tax Rate and Tax Burden.
3. Thus in respect to the s1.2o tax
rate which is attacked it appears (a)
that the rate is not fixed by law, but |
is temporary and easily and auto |
matically changeable annually by
Congress in fixing District appropria-
tions; (b) that Congress, not the Dis
trict, is solely responsible for the at
tackled rate, and could have increased
it, the District cheerfully asserting, |
by making more adequate appropria- |
tions for Capital maintenance and up
rate is not the smallest among Amer |
lean cities. Some cities have smaller
city tax rate and a few cities have a
smaller tax rate. CITY, county ana
state rate combined.
But if the $1.2O rate were actually
the smallest in the United States that
fact would have little weight In the
measurement of comparative tax bur-
denS.
between tax rate alone and tax bur |
den; the state laws directing full
yaIue assessments for tax-levyinE
purposes are neither Obeyed nor en-
forced; and the tax rate alone or
q T0DOYtS
relations between true and assessed
yaIue is utterly worthless and thor
oughly misleading as n ynrdst1ck Tor
the measurement OF comparative tax
burdens.
4, since the tax rate il worthless
rs n standard OF measurement of
comparative tax burdens, the District
cannot be convicted of undertaxatiOn
by tax-rate evidence; nor when COM
parative tax-assessment standards are
taken into account and the varying
conditions of environment of the as
SCISSORS in the different cities are con-
sidered can the District be convicted
of undertaxatiOn on any other evil
dence.
Why Our Assessment Standard Is High
To offset it's comparatively low
tax rate the District has a COM
paratively high standard of assess
ment, among the very highest In the
country.
WashinEton's standard of ASSESS
ment is higher than in most other
cities:
% Because the temptation to and
the opportunities for discrimination
and personal or political favOritism
through underassessments are lack
ing. The taxed have not in the Dis
trict any control over the appoint
ment or the retention IN office of the
assessor. The situation is far diff
ferent in the average American city.
Washington contends that asses
sors in many other cities, politically