Evening star., 1927-10-10
Do Not Obscure the Issue!

Announcement OF some of the results
Of it's preliminary survey of the tax
situation in eighty of the largest cities
of the United States convinces the
Board of Trade that the tax rate here
should not exceed it's present figure of
$40. Through it's municipal finance
committee, the Board of Trade, in
keeping with its fine and long estab-
Hshed record of forwarding the de-
velopment Of the Capital City and
protecting at the same time the in
terests of its residents, is seeking to
demonstrate anew fact that becomes
more apparent every year, namely,
that Washingtonians are not under
taxed, but, on the other hand, if there
must be resort to comparison. they
are overtaxed. To prove this, the
figures so far announced by the board
indicate that the true value assess
ment system in Washington more
than makes up for the actual differ
ence in tax rates between Washington
and other cities-a difference so often
cited by those who possess only casual
acquaintance with actual conditions.
All of this is interesting, and the
figures compiled by the Board of
Trade will no doubt have important
bearing upon what promises to be
o lively rediscussion this Winter of
the troublous problem of District
finances.
Higher assessments on District of
Columbia property with no correspond
ing decrease in the tax rate resulted
during the last Summer in renewed
discussion of District finances by trade
organizations and civic bodies, and the
Commissioners have already indicated
their intention of again bringing the
matter before Congress this Winter.
This preliminary discussion, however,
3 has been marked by tendency to
forget the real issue involved. In con-
nection with the proposed airport, for
instance, the suggestion came from
one source that Congress should
help the District purchase the site,
but IL Congress declined. the site
should, nevertheless. be purchased by
the District. From another source the
suggestion has been revived that the
intangible tax be abolished, and an
income tax substituted. From another
source comes the suggestion that the
whole matter of raising revenue in
the District should be looked into,
with the thought in mind that some
potential sources of revenue now
escape their share of taxation, while
others are taxed disproportionately to
the ne/ ire or the amount of the
business they transact. In addition,
the bond issue proposal has again
come to the front as a panacea for
hard times.
None of these propositions, whether
sound or unsound in the abstract,
strikes at the root Of the difficulty.
For example. unless the Nation is
bound Enthusiastically and inescapably
to participate substantially in the re-
payment of Treasury advance or
bond issue, the latter becomes vital
Injury instead of a blessing.
The Districts program in placing
its plea before the coming session of
Congress should be devoid Of these
side issues and counter proposals.
They tend to become red herring
drawn across the trail. Let there be
united front; a determined stand on
the question of fixing a fair system of
apportioning expenses between the
District and the Federal governments
for the maintenance of our Capital.
Find the equitable relation, mark it
plainly and establish it, and then let
attention be focused on the tax rate,
methods of collecting it.
Pending the establishment of a
permanent equitable system of financ-
Ing the District, every effort should
be made to reduce the injurious in
justices of the temporary lump-sum
payment plan. AS an Immediate
practical step, push vigorously for in
crease Of the basic lump sum pay
ment of nine millions; for a general
increase corresponding approximately
to increases in total appropriations,
and for specific increases well known
to us all as demanded by the law or
by equity.
Mexico never touches the light