Evening star., 1927-11-16
Inequity of the Lump Sum.

Commissioner Taliaferro's statement
before the Washington Real Estate
Board at a meeting last night regard.
ing the fiscal needs Of the District is
founded upon reason. He urges that
Congress should return to the definite
proportion principle Of providing Fed
eral funds for the maintenance of the
District in lieu of the lump-sum pro.
vision now as for some years past
placed at nine million dollars. He de-
clared his opposition to any plan under
which the local taxpayers are called
upon to shoulder more than a just tax
burden, citing the fact that the as
scssed value of Government property
here exempt from taxation is $470,-
O0O. 900. The District government owns
property assessed at fifty million dol.
lars and foreign governments have
title TO realty valued at approximately
four million dollars, all of which is non
taxable.
The Federal Government property
holdings in Washington are steadily
increasing. Under the present COM
prehensive public building program
several million dollars worth of real
estate now taxable will be taken for
Government uses, and thus removed
from the taxable list. This will in.
evitably, under the lump-sum plan,
shift to the shoulders of the local tax
payers another fraction Of the burden
of Capital maintenance. Under the
definite proportion principle, main
tained from 1878 until 1922, any such
transfer of title from taXpaying Wash
ingtonians to the mountaineering Gov
ernment would be reflected in the Fed.
eral contribution. But with the lump
sum principle substituted for the fixed
ratio, whether at fifty-ffty or sixty
forty, there can be no such compensa-
tion for loss in taxable property in
terms of a proportionate sharing of
che cost.
Despite the fact that Congress, with
out formally repeating the definite pro.
by successive lump-sum appropria.
tions, it is hoped that the logic and
equity of definite ratio principle will
be restored. The lump sum is a
gratuity, a dole, which can be in
creased or decreased at the will OF
Congress. The definitely proportioned
contribution is an equity. The Dis
trict does not relish being placed in
the position of a charity patient. 1t
holds that it's municipal costs should
be shared by the Federal Government
snasmuch as that Government is itself
the holder Of large proportion of the
property within it's bounds, is con-
stantly increasing that property and
Is the beneficiary of its municipal ad-
lninistration.
The organic act of 1873, which es-
tablished the definite ratio Of Federal
contributions, was an expression OF
the exclusive legislation" prerogative
of Congress, established by the Con-
stitution. It recognized that Wash
ington, as the seat OF government
could not be treated as an ordinary
municipality, but must be accorded
special consideration. At that time
there was no program of large Gov
ernment improvements in the District,
nor was there such a program in prac'
tical contemplation when the ratio was
changed. 1t matters nothing, how
ever, as to the Governments plans of
Federal development in the District
as regards the equity of determined
proportion of contribution. The prin-
cipIe of fixed ratio is the only safe
guard the District has against exces-
sive taxation upon a diminishing body
of property to sustain a developing
community.