Evening star. [volume] (Washington, D.C.) 1854-1972, 1928-01-05
LUMP PAYMENT is
BAD SUBSTITUTE
FOR 6O.4O SYSTEM
Continued from First Page,)

wolves q corresponding increase of
contribution by the national partner:
while under the lump-sum payment
plan every increase OF compulsory
and involuntary contribution by the
local partner involves q corresponding
decrease of the amount OF necessary
contribution by the national partner.
The natural result OF the removal
OF the self-imposed restraint upon the
exclusively. national part
ner is to cause him to collect more
and more of necessary District rev.
enue from his helpless partner and
less and less, relatively, from his own
purse. Authorized by substantive law
of his own enacting to collect only
60 per cent Of District appropriation
from his impotent associate the ma
tional partner under the lump-Sum
payment practice now exacts rs per
cent and the natural and actual tend
ency Is toward a continuing increase
OF this percentage.
The lumpsum payment plan Is un.
sound in principle and unjust in prac-
tice when applied TO the peculiar rela-
tions Of national and local partners
In the National Capital partnership.
.. Our contention that the lump.
sum payment practice destroys the
unrepresented Capitals safeguard
against excessive and unjust taxation.
may with advantage be elaborated.
Destroys Capitals Safeguard.
The compromise law OF 1922 cou-
pied with the imposition Of new and
heavier tax burdens upon the Capital
the vitality important olfsetting benefit
of retention of the principle of definite
proportionate contribution. the Dis
trict's safeguard against excessive and
unjust taxation by a taxing body in
which Il is not represented. The lump.
sum payment practice deprives the
District Of the only feature Of the COM
promise law OF 1922 which is clearly
advantageous to the eeople Of the
Capital.
The vital feature o, the act Of 1922
carried over from tHe act OF 1878 is
that 1t fixes a definityequitable stand
ard Of national participation in Capt.
ital making. related to the contribu.
tiOn exacted In taxes from the Capital
community, and does not leave this
standard to the shifting Of caprice.
From 1900 to 1S74-8 the national
and local Capital contributions were in.
definite and unrelated. Each contrib
uted what 1t pleased toward Capital
upbuilding. The Nation measured its
own obligation in terms of dollars as
next to nothing. The local community
raised and discussed its own taxes at
its pleasure. 1t measured its
Capital obligation considerably beyond
the limits Of its meager taxable re-
sources and twice became practically
bankrupt in performing almost unaid-
ed the Nations task Of Capital
building.
In 1873 the Nation confessed its vic.
lation or gross neglect OF It's Capital
obligations. It gave practical expires.
sion to its revived sense of this obli.
CATION in its undertaking to pay one
half the accumulated funded indebt-
edness OF the District and one-half OF
future expenses. 1t took from the
District the power of self.taxation and
assumed completely exercise Of the
right TO AK the local contribution as
well as its own. In thus exercising
taxation without representation over
the District the Nation safeguarded
the Capital community by the yOIun.
tary, seif-imposed pledge that to every
dollar collected In taxes from the local
taxpayers should be added dollar
from the National Treasury and that
the aggregate revenue should be ex-
pended for Capital upbuilding. This
provision protected the District from
excessive taxation by causing q tax
gatherer, alien to the unrepresented
District, to appropriate from his own
Treasury for the Districts benefit
every time he appropriated from the
districts tax revenue. Every dollar
ne TOOK under the tax power from the
local community increased correspond
lngiy his own Capital contribution.
The law Of 1922 retains the principle
or definite. related Capital contribu-
tons In which the law OF 1873 was
rooted. That the ratio OF this relation
was changed from fifty-fifty to sixty.
iorty did not alter the basic principle
involved.
The lump.sum payment practice
destroys afl relation between the
National and local contributions and.
leaving all taxing power in the hands
OF tho United States, deprives the un.
represented Capital Of ts safeguard
against excessive taxation by n taxing
body In which 10 Is not represented.
Under the lnmp-sum payment prac.
tice additional dollars OF tax exacted
from the District no longer increase,
but correspondingly reduce the ma.
tional contribution. actually or rela.
lively.
Teaches . False Theory.
3. IL teaches . false theory concern.
Ing the relation OF Nation TO Capital.
1t obtrudes annually upon the atten.
ton OF Congress the suggestion OF q
large cash donation to the Capital, Ar
II the primary obligation of National
city upbuilding were upon the local
taxpayers and the Nation were only
an incidental contributor, q voluntary
and benevolent donor. Since the
Nation in 1873 recognized and assumed
It's National Capital power and obliga-
ton. It's responsibility in respect to the
Capital has been primary and doninat.
Ing. As late as 1915 this relation Of
Nation to Capital WAS fully recog.
nized and clearly set forth in the re-.
port or the joint select committee Of
Congress. which made tho most
thorough, exhaustive andsabIe study of
the fiscal relations Of Nation and Cap.
itaI that statesmen had given to the
subject since Is74s. As long as all
the assets and revenues Of the national
and local joint contributors toward
Capital upbuilding are in the ha nds Of
the national Joint contributor. and as
long as all decisions concerning the
amount To be paid by the Joint contrib.
utGrs respectively and concerning the
expenditure OF the Joint revenue are To
be made by the national contributor.
tho latter must. in equity. and win in
fact bear the primary responsibility
Of Capital upbuilding. and the local
taxpayers viii De recognized In their
true relation ~ merely incidental con.
hibutofs Of tax money, not fixed in
amount by themselves, but sxacted at
The pleasure Of the other joint ron.
fribHtor. Since all the taxing power
remains In the hands Of the national
partner, M limitation anon fhn