Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-06-22
District Finances.

In their statement regarding the
District budget and tax rate, which
they have submitted to the Commits
sioners, the directors of the Washing
ton Board of Trade express the feel
ing entertained by practically the en-
tire community respecting the dan
ger Of undue increases in the volume
of appropriations without assurance
that Congress will respect the prin-
ciple of definite proportion in provid-
ing for the contribution of Federal
funds for Capital maintenance. The
boards directors urge that the budget
be kept down to approximately $43,-
10000, and that the tax rate be held
to $1.65. This would entail a cut Of
$6,500,000 in the estimates already
tentatively prepared and would lower
the rate of local taxation fifteen cents
on the dollar of assessed valuation.
If Congress persists in regarding a
lump sum of 100000 as the maxi
mum of Federal contribution to the
upkeep of the District there is no
check whatsoever upon the generosity
which it may display respecting the
appropriation Of local tax funds. In
deed. it is known to be the definite
purpose of some of the Districts leg
islators to hold fast to the lump-sum
principle while voting increases in
the District budget and consequently
the District tax rate in order to DEM
onstrate that further financial par
ticipation of the Nation in the munic.
ipal maintenance of the Capital is
needless.
The existing substantive law au-
lion lump-sum payment up to an
amount equal to forty per cent of the
total sum carried by the appropria-
ton bill. Yet while the District
budget has been growing annually
since the lump-sum provision was
first adopted, no increase whatever
has been made in the amount Of Fed.
eral funds voted by Congress. The
District has reached the point in its
development where, in order to main
tain it's standard and to provide long,
denied capital improvements, it re-
Quires to be allotted large appropria-
ton annually. 1t cannot possibly
meet that heavy draft upon its tax
revenues without most burdensome
assessment and rate. exceeding con-
siderably the average tax imposition
upon comparable American communi-
ties.
In their statement to the Com
missioners the Board of Trade di.
rectors urge that Congress should be
asked to establish commission COM
posed of Federal and District mem
bers to determine the fair and just
tax burden to be paid by the city as
its equitable contribution toward the
upkeep Of the National Capital. The
fact that this question has been here
tofore investigated by Congress, no.
tably by the joint committee Of 1915,
does not lessen the force of this rec
ommendation. A totally different sit
uation exists now. Congress has with
out actually amending the organic
act scrapped the definite proportion
contribution and substituted the il
logical principle of lump sum, leav-
ing no check upon congressional lib
crafty with District funds and lead
ing to steady increase in the burden
laid upon the District taxpayers.
Surely there is justice in the demand
that this matter be now fully studied
with a view to determining the equi-
ties and to the adoption of a depend.
able system of Capital maintenance
which will insure the District against
excessive taxation.