Evening star., 1925-01-10
Practical Injuries Threatened.

ueilll4le plOpOIllONat6 contribution
from the substantive law governing
the financial relations OF Nation and
Capital. The action of Congress last
year in yielding to eleventh hour pres
sure and experimenting temporarily
in the appropriation bill with the
lump-payment plan had no such re-
suit.
The practical effect of the Cramton
bill, destroying the 6O-4O relation be-
tween the national and the Capital
community contributions toward Ma
tional City upbuilding, is to place a
maximum limit on the contribution of
the United States and to remove the
limit entirely from the contribution Of
the local taxpayers.
Indeed, the very purpose of the
proposed legislation is to enable
taxing body in which the District is
not represented to increase the local
burden of taxation at its pleasure. un.
checked by the existing requirement
that every such increase be reflected
in some measure in national taxation
for Capital upbuilding.
The maximum national contribution
is made definite during the time in
which Congress refrains from dirnin-
ishing it; but all limits are declared
of in respect to the local contribution,
and it remains definite only in the cer-
tainty that the local tax burden will
hn 10
cal taxpayers will not participate at
any time in the decision of the amount
of the increase, the methods OF taxa
tion by which the increase is secured.
and the purposes for which the tax
Money is spent.
Under the 6040 ratio of contribution
every dollar of increased taxation OF
the unrepresented District means
some increase Of national taxation for
Capital upbuilding. Under the pro-
posed legislation every dollar of in
creased taxation OF the District
means a corresponding reduction Of
the amount necessary to be devoted
from national taxes to Capital up
building. Under the 60-40 ratio plan
there is an equitable self-imposed
check upon excessive and unjust tax
alton by the National Legislature Of
the unrepresented and impotent Cap
ital. With this self-imposed check re-
moved and with every tax dollar ex-
acted from the District reducing the
necessary tax dollars to be spent upon
Capital upbuilding by the Nation, the
obvious tendency and by some the
avowed purpose of the proposed legis-
lation is to decrease the national dol
lars Of Capital contribution eventu-
ally to nothing.
The proposed legislation obtrudes
annually upon the attention Of Con-
gress the suggestion of large cash
donation to the Capital. as If the pri-
mary obligation Of National City up.
building were upon the local taxpay-
ers, and the Nation were only an in
cidental contributor. voluntary and
benevolent donor. Since the Nation in
1873 recognized and assumed its Ma
tional Capital power and obligation, its
responsibility in respect to the Capital
has been primary. dominating, exclu-
sive. As late as 1916 this relation Of
Nation to Capital was fully recognized
and clearly set forth in the report Of
the joint select committee Of Congress,
which made the most thorough. ex-
haustive and able study Of the fiscal
relations of Nation and Capital that
statesmen had given to the subject
since 1S74-S. As long as all the assets
and revenues of the national and local
joint contributors toward Capital up
building are in the hands of the ma
tional joint contributor, and as long
as all decisions concerning the
amounts to be paid by the joint con-
tributors, respectively, and concerning
the expenditure Of the joint revenues
are to be made by the national con
tributor the latter must in equity,
and will in fact. bear the primary re-
sponsibility Of Capital upbuilding, and
the local taxpayers will be recognized
in their true relation as merely Incl
dental Contributors Of tax money. not
fixed in amount by themselves, but
eXacted at the pleasure of the other
Joint contributor.
Another practical effect of destroy
ing the 60-40 ratio will be to reduce
TO minimum any chance of equitable
proportionate contribution by the
Tnited States when our accumulated
tax surplus comes to be expended
This tax money was collected by ati-
thority OF the halfand half law solely
TO apply upon the Districts half of
District appropriations. Whenever it
is expended it would be equitable to
spend it under the half-and-half law,
the United States duplicating if. If
when the surplus comes to be used
the proportionate contributions are on
the G0.40 ratio, the Nation, through
Congress, will either apply, as equity
seems to demand. the $3.50 ratio, or
will make the existing 6o-40 ratio retro
active and add to the Districts surplus
only 40 per cent from the National
Treasury. But If both the $3.50 and
the 60-40 ratios are destroyed. and
when the surplus comes to be expend-
I'd there is no definite proportionate
euAtFteuuea by Nation and t+xpaying
Capital, then the chances ars a hun.