Evening star., 1924-01-08
Gasoline Tax Equities.

and the Governor of Maryland, was
carefully worded to bring about whole.
some reciprocity between two init
mately associated neighboring commu.
hities-Maryland and the Federal Dis
trict carved from it-with a maximum
of benefit and a minimum Of sacrifice
"n the part of both neighbors. Sub
stitution Of the gas tax for the other
motor taxes in the District meant
only a slight increase in the total tax
burden imposed upon automobiles.
And this slight increase was offset by
the benefits Of reciprocity. If Con-
gress. acting as a legislature chosen
by the people Of the District would
inevitably act. and rejecting their rea-
sonable wishes should approve this
agreement, it would benefit Maryland
and the District and would not injure
in any way the national partner in the
National Capital partnership.
If, however, this Maryland-District
agreement is not to be viewed as a
friendly, comparatively inexpensive,
gesture Of neighborly comfy, but Is to
be treated as an enthusiastic invita-
ton by the District to Congress to
blister it with a new half-million tax,
then We should quit discussing reci-
procity and comfy, and the new tax
proposition should be considered on it's
merits and rejected.
This is the era of postwar tax
reduction. 1t should not be marked
paradoxically in the National Capital,
''the nation in miniature" by a hasty,
nl-considered. unjust and hurtful half
million tax increase.
The new organic act Of 1922 read
justed the fiscal relations Of nation
and Capital on sound lines Of wise
compromise. 1t raised the intangible
tax rate sc % per cent and it took
from the District hundreds of thou
sands of dollars of miscellaneous reve-
nue. which it had heretofore exclu-
sively enjoyed. 1t increased the Dis
trict's proportionate payment from so
per cent to 60 per cent, and as an off,
affirmed definitely the principle Of re.
lated definite propertionate contribu-
ton by nation and Capital toward
Capital upbuilding, and fixed the new
ratio Of contribution at 60-4o.
This law was acclaimed as a peace
settlement Of fiscal relation contro-
versies. When rounded out by equita-
BILE disposition of the Districts treas
ury tax surplus this legislation was to
give the District and Congress rest
for a period from irritating prejudice
breeding friction over taxes, ratios
and fiscal relations.
If, however, the suggestion of Mary
land-District Of Columbia motor reci-
procity Is made the pretext Of threat
to impose upon us a new half-million
tax the fiscal relations peace settle
ment of June 29, 1922, will be re-
otened, the House and Senate will be
plunged into the old wearisome fiscal
wrangle so hurtful to the District, the
avowed main purpose Of the act of
1922 will be defeated and the under
standing upon which this compromise
legislation Was based will be violated.
The new organic act laid out a
definite plan Of fiscal procedure for
five years, with the suggestion Of in
definite automatic continuance Of that
plan at the pleasure of Congress.
Through it's agent, the joint congress
sional District Of Columbia surplus
committee, Congress arranged to
close up equitably the disputed ac-
counts Of the past, and to dispose just
ly Of the accumulated tax surplus Of
the present. The new law also direct
ed the accumulation for five years Of
a new surplus to supply a "pay-as-you-
go'' fund for the future.
Is it wise to violate 50 soon in the
f1ve-year period the spirit, intent and
promise Of the act of 1922?
The sacrifices exacted from the Dis.
trict In this .compromis settlement
were neither few nor light. AS we
have seen, fts tax burdens were in.
creased and its revenues to meet its
taxes were cut down. Its proportion.
ate contribution for Capital upbuild-
ing was increased one-fifth; its stand
ard Of assessment was raised one-half
and its Intangible tax rate was in
creased two-thirds.
Do not these sacrifices suffice? Will
the nation, with all power in its hands,
abruptly alter the compromise settle.
ment Of 1922 to the. injury Of its i'm.
potent partner in Capital upbuilding?
On American principles Of repre-
sentative government an American
legislature, with it's members chosen
2 by and from the community, acts In
the interest Of its constituency, re.
hecting the community's reasonable
wishes and vigorously protecting its
welfare against assaults and encroach.
nents.
The fact that owing to century.old
supposed national exigencies the legis.
iature which acts for the half-million
people Of the District Is not chosen by
them even fractionally, but is selected
for them by all other Americans ex.
cept themselves, does not alter the
basic relationship Of this American
legislature to its Capital constituency.
Under their oath Of ofice, and in &C.
cordance with American spirit and
tradition. It's members are under the
Same obligation a. other American
leidators to tax and TO make laws for
THAR politically helpless constituency