Evening star., 1930-06-24
Federal Taxes and Gratuities.

While the people of the District do
not conceive of the Federal contribu-
ton to the expenses of its Capital City
as a gratuity'' or bounty" some
members of the House have taken this
point Of view and have expressed some
alarm lest they play false with their
constituents back home in allowing the
amount of the "gratuity" to be in
creased.
table presented elsewhere in to-
days Star sheds interesting light on
this question of gratuities, and the ad-
ditional load placed upon the shoulders
of the National taxpayers by increasing
the lump sum-a sum that may be con-
strued as made up by Federal taxes.
The table shows that the District.
with its seventeen millions contributed
to the Federal Government through its
Federal taxes. pays more to the Federal
Government than any one of twenty
five States, and pays more than ten of
the States combined. Yet the lump-
sum contribution becomes relatively
small in proportion to the amount paid
In Federal taxes by the District when
the gratuities received by the States
are taken into consideration.
The ten States, for instance, con-
tribute in Federal taxes something more
than sl6,000,000, receiving from the
Federal Government bounties that
amount to more than $14O00,O0O. They
therefore receive about "a per cent of
what they give. The Districts ST.
100000 Tin round numbers) contrib
uted in Federal taxes may be compared
10 the S9.000,0 900 received through
the lump sum. The District thus re-
cetves about So per cent of what it
gives. More interesting still is the fact
that five States receive more from the
Federal Government in various forms
OF bounties than they contribute to the
Federal Government in Federal taxes.
The per capita contribution in Fed
eral taxes of the ten States mentioned
In the table amounts to an average of
$4.6l, to be compared to the $3O.97
per capita contribution in the District
OF Columbia. The average per capita
Tor the United States as a whole is
s24.41. For the table used the popu-
lation figures were based on census esti-
mates higher than the 1880 enumera-
tion, which makes the Districts per
capita contribution, as stated in the
table. even lower than the final figures
would show it in reality to be.
Tha L1k,
the Senate over the District bill rests
primarily on the amount of Federal
money to be appropriated to Capital
expenses. This Federal money might be
construed as being paid entirely by the
people of the District. Their combined
Federal and municipal taxes-without
taking into account their gasoline and
water taxes-exceed by about $8,O00,-
600 the total cost of maintaining and
improving the Federal Capital under
the House bill for 1881.
The se,000,O00 lump-sum contribu-
ton is IN no sense a "gratuity'-some-
thing received for nothing given. 1t
represents a part of the Federal tax
receipts made up Of Federal taxes con-
tributed by all taxpaying Americans,
to the total Of which the taxpaying
residents of the District contribute
proportionately large and altogether
adequate amount.
In appropriating a lump sum from
the Treasury for Capital development
the Representatives Of 25 of the States
are contributing relatively more of Dis
trict money than OF money paid by
their constituents. The District con-
tributes on both sides of the partner
ship-all of the Municipal taxes and
more than IS States in National taxes.