Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-01-29
100000 INCREASE
IN FEDERAL FUND
FOR D. c. IS URGED
Bingham Cites Large Park
Area and Nom Taxable
Institutions.
SUGGESTS U. S. PAY TAX
ON TANGIBLE PROPERTY
Believes Lump Sum Should Vary
With Value of Govern.
ment Holdings.

bIJS FtuEtdI AIOtSIIIIlStlL NUIlNL
toward the expenses of the National
Capital in the opinion of Chairman
Bingham of the Senate subcommittee
now holding hearings on the local ap-
preparation bill for the next fiscal year.
Senator Bingham announced last
night that he had reached this con-
clusion after studying the fiscal rela-
tons report of the Bureau of Efficiency
and he gave an outline of the factors
which led him to the belief the United
States should increase its share in the
pending bill
The Senate chairman also announced
that he believes the Federal Govern
ments lump sum should vary as the
value of the Governments property
varies. Another conclusion he has
reached is that the United States should
make an effort to pay taxes on its
tangible property in the District.
Stresses Large Park Outlay.
Senator Bingham laid stress upon the
large park purchase and maintenance
this is the Capital of the Nation and to
the unusual number of non-taxable in
situations located here because this Is
the seat of government The Connecti-
cut Senator arrived at the conclusion
favoring an 100000 increase in the
lump sum by computing what he re-
CARDS as fair allowances the Federal
Government should make for the excep-
tional park requirements and the I'M
usual number of tax-exempt institutions
over and above what the Federal Gov
ernment's bill would be as municipal
taxpayer.
The Senator called attention to the
finding of the Efficiency Bureau that
the Federal Governments bill as q
municipal taxpayer would be 81 440, 1888.
The difference between that sum and
the present $4,000 900 contribution
leaves $1,559,061 to be applied to the
items of park development and recov-
cry of revenue lost to the District by
reason of the excessive number OF non
taxable institutions.
Expressing grave doubt as to the
justification for holding the Federal
Government liable for an intangible
tax, the Senator then adds to the
Sl.55o.06l the item of $451 ,857, which
the Efficiency Bureau charges the
United States as a tax on intangible
property. This gives the United States
$2,011, 900 to cover the excess items
mentioned.
The Senator expresses the belief that
$l,100000 would be reasonable charge
against the Federal Government under
the heading of parks, leaving 5000, 900
to apply to the factor of revenue lost
by reason of the tax-eXempt property
here.
Figures Tax at S1,7OO,000.
The Senator shows that fair aver
age Of tax-exempt property for city
of this size would be $3.50, 100000, but
that because it is the Capital an un-
usual number of such institutions are
located here, bringing the total to
more than $100,000,000 above the
average. He declares it would be fair
for the United States to pay toward
District expenses an amount equal to
the normal tag on the 500, 100000 or
of real property in excess of average
exemptions He computes this tax as
approximately $l,700,000, and figures
that at present the Federal Government
is payirg $500 900 toward this obliga-
ton CIT of the 100000 lump sum.
Senator Bingham's statement, IN full.
follows:
"A study of this report leads to a
feeling of satisfaction that there has
kLGu pIEpd1C0 OuCk d 0CbnANA AAAAS-
pendent study Of the taxation and fiscal
affairs of all cities in the United States
having an estimated population OF be-
tween 100000 and 100000.
"It is Obvious that the city of Wash
fngton, with a population of something
more than half a million, has very
similar problems and that in attempting
to Judge the nature OF the fiscal rela-
lions between the Government of the
%kan Nin inf Nf NJ
lunbia such figures are OF help.
las has been pointed out by Repre-
sentative Simmons, the chairman of the
subcommittee of the House committee
on appropriations in charge of the Dis.
trict of Columbia appropriation bill
some matters have been left out which
should have been given consideration.
understand that in accordance with hi!
suggestions supplementary report !.
in progress of preparation and I shall
read it with interest when 1t appears.
Inclined to Agree With Bureau.
81 am inclined to agree with thu
Bureau of Efficiency that the solution
of the problem of fiscal relations lie
in determining the Federal Govern
ment's liability toward the cost of run
ming the District of Columbia aloIii
the lines of the tax liability of the Fed
eral Government as a municipal tax
payer in connection with the ordinar'
costs of government and also its liabilit,
on account of extraordinary eXpendi
lures occasioned by the fact that Wash
tngton is the National Capital and tina
the District is not at liberty to Ia
Government property
-Four interesting questions rise: Il
What is the liability of the Fedora
Government as municipal taxpayer
90 What is the loss of tax revenue t
the Government of the District of Co
lumbia on account of excessive exemp
tons of real property? 80 How niue
of the cost of excess park acquiSitio
and maintenance should be met by tn
Federal Government? "a How muc
of the liability of the Federal Govern
ment as a municipal taxpayer Shout
be offset by reason of the very consic
cradle economic benefits accruing to tn
District owing to the presence here
national monuments and great publ
buildings which make Washington til
mecca of hundreds of thousands
tourists?
Holds S7,44O,23S Fair Charge.
According to the report fair chare
on the Federal Government as munit
ipal taxpayer would be $7,440,939. 4
n matter of fact, the Federal Govern
ment makes contribution of SO, 600. 90
which leaves balance of 81 $50 ,061
be applied to the items of excess pal