Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-06-25
A District Fiscal Survey.

The need Of a thorough STUDY by
Congress Of the question Of District
finances, with a view to determining
the future policy with relation to the
share the Federal Government Is to
bear Of the cost OF Capital main
tenance, Is again demonstrated by the
announcement by the Commissioners
Of the tax rate for the coming fiscal
year. It has been set at $40 on each
500 Of assessed valuation. This rate.
coupled with the new assessment OF
property values. win impose a burden
Of taxation nine per cent greater than
during the now closing fiscal year.
With the Government participation
in Capital maintenance limited to a
lump sum Of $1,000. 900. which has for
several years remained fixed. without
any relation to the amount Of District
tax money, the share OF the United
States In the upkeep Of the District,
which nearly fifty years ago was
placed at fifty per cent and was kept
at that rate for many years, is stead.
lily becoming proportionately less. Is
It to be the established policy OF Con-
gress thus to maintain a veritably
downward sliding scale Of Federal
participation?
That question should be answered
by Congress. It should be answered
after an inquiry, a thorough study
into the equities Of the Federal-Dis-
trics partnership In the maintenance
Of the National Capital.
Measurement Of the tax burden by
rate alone Is fallacious. Measurement
by assessment alone is not dependable.
The only proper means Of ascertain.
ing the real burden borne by the tax
payer IL by the application Of the rate
to the assessment, giving the actual
amount Of money obtained. The new
assessment Of real and personal prop
erty in the District is $1,252,000 900.
al against $1,042. 100000 under the
previous valuation. The 1927 tax rate
Of $3.50 applied to the then assessed
valuation yields s1,5o0.0oo less rev.
enue than will be yielded by the $1.7o
rate applied to the new valuation. It
il easy to conceive that Congress. IL
Il persists in voting Federal contribu-
tons on the lump-sum nine-mlllion-
dollar basis, will urge that n higher
rate Of taxation should be applied to
produce the larger sum necessary to
care for increased District needs both
current and capital in character.
From such a position to the reduction
and ultimate elimination Of the lump
sum 10 but q step which the District
has reason to fear IL this whole ques-
ton 10 not studied in constructive,
helpful spirit by the Capitals legis-
lators.
Assuredly there can be no logical
refusal on the part Of Congress to
consider this matter in the light OF
present conditions. The fiscal inquiry
Of 1915 led to no definite conclusion
and was followed by reputation OF
the organic act of 1873 and the ulti-
mate dropping Of the fixed-proportion
principle. Conditions have changed
materially since that inquiry was
held. The war has been fought, leav-
ing q heavy burden Of obligations
upon the people Of Washington. The
essential equity. however. has not
been changed. Great projects OF i'm
provement have been undertaken in
which the District shares. The Cap
ital's needs are heavier than ever
and ita primary need is OF a depend
able. q proportionate rate Of Federal
aid in return to the principle estab-
lished in 1873 and maintained for
nearly fifty years. A request for such
q survey should be the keynote Of the
Commissioners annual report to Con-
gress.
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