Evening star., 1925-01-11
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Maryland and Virginia.
All Other States
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House and Senate that the act was
compromise measure disposing for
many years of these troublesome fiscal
relation issues. The Districts contri.
oution toward Capital upbuilding was
increased from so to so per cent. its
TAX on intangible personally was in.
creased Sc % per cent, and the founda.
tlon was laid for increasing its realty
TAX; 1t was deprived Of exclusive credit
Tor large sums of miscellaneous re.
celpts hitherto solely enjoyed, this ac.
ton inf1ictins heavy loss, and 1t was
compelled to accumulate from its tax
money of present years (every cent of
winch was needed to meet the urgent
municipal needs of todaU a fund ~
millions to provide in advance for
meeting the first half-year expenses
OF 1S27-S. In partial compensation for
these drastic exactions the District
was to enjoy for five years and in.
definitely thereafter the benefit of
approximate certainty, as to it's ratio
OF proportionate contribution: it was
through increased respect to be shown
TO the Commissioners estimates TO
nave in substance the privilege of in.
nuential participation in shaping ap.
preparations of which it should nav
90 per cent, and it was TO be spared for
long period the hurtful deadlocks
over ratios between House and Senate
which annually endangered the Dis
trict appropriations and undeseryedly
prejudiced House sentiment against
the Capital community.
But no sooner is the definite se.4n
ratio fixed by compromise agreement.
leaving only the surplus question to
be decided equitably by Congress, and
almost before the Capital community
has adjusted itself to its new fiscal
organic act and has begun to enjoy
the promised bliss of fiscal peace. than
a proposition appears to repudiate the
agreement upon the 60-40 ratio, to
substitute a system Of indefinite con.
tibution by Capital and Nation and TO
prectpitate Washington taxpayers into
the fiscal chaos from which they have
recently emerged.
The vital feature OF the act Of 1922.
carried over from the act of 1878, is
that it fixes a definite equitable stand.
ard Of national participation in Capi.
tai making, related to the contribution
exacted in taxes from the Capital COM
E1unity, and does not leave this stand
ard TO the shirtings Of caprice.
Two practical questions in respect
to financing the Capital have been of
vital importance from the beginning:
W Shall the national and local con-
u1bu1ons be definite or indefinite, re-
lated or Independent? t2) Who shall
determine the relation Of the amount
OF these contributions, respectively?
The history Of the Capital has DEM
onstrated distinctly that these con-
tributions should be definite and re-
lated: and that if indefinite and unre-
lated to insure justice each contrib
utor should have a voice in determin.
ing the amount Of his contribution.
Since the day Of the creation Of the
Capital the Nations obligation toward
the Nations City has been the same
primary, exclusive and dominating.
Not the obligation itself, but the de-
gree In which 1t has been recognized
and met has been the f1uctuating fac
tor in the equation.
From 1900 to 1S74-S the national and
local Capital contributions were in.
definite and unrelated. Each contrib
uted what it pleased toward Capital
upbuilding. The Nation measured its
own obligation in terms OF dollars as
next to nothing. The local com.
munity raised and disbursed its own
taxes at its pleasure. 1t measured its
Capital obligation considerably beyond
the limits of its meager taxable re.
sources and twice became practically
bankrupt in performing almost un.
aided the Nations task of Capital
building.
In 1873 the Nation confessed its vic.
lation or gross neglect of its Capital
sion to its revived sense Of this obli.
cation in its undertaking to pay one,
half the accumulated funded indebted
ness Of the District and one-half OF
future expenses. 1t took from the Dis
trict the power of self-taxation and
assumed completely exercise Of the
right to fix the local contribution as
well as its own. In thus exercising
taxation without representation over
the District the Nation safeguarded
the national community by the pledge
that to every dollar collected In taxes
from the local taxpayers should be
added dollar from the National
Treasury and that the aggregate rev
enue should be expended for Capital
upbuilding.
The law of 1922 retains the principle
Of definite related Capital contribu
tions, in which the law Of 1873 was
rooted. That the ratio of this relation
was changed from $3.50 to 6o-40 die
not alter the basic principle involved
The pending proposition destroys al
relation between the national and 10
cal contributions, and, leaving all tax
ing power in the hands of the United
States. deprives the unrepresentet
Capital of its safeguard against ex
cessive taxation by taxing body ir
which it is not represented.
Whenever. k sver. the United Stste'