Evening star., 1931-12-15

for an income tax, an inheritance tax.
an increase in the gas tax from 2 cents
to 4 cents per gallon and motor We
hicle weight tax. The people in the
States pay these taxes. If the people
of the District are to pay taxes that
are comparable with those paid by peo-
ple in the States, they should pay them
As to these taxes, there is no chance
for argument from a comparative
standpoint In fact, the rates suggested
: In the bills reported by the committee
are somewhat under the average of the
States. II they are not imposed in the
District, the District is bound to be
haven for tax dodgers, for those who
want to escape the payment of such
taxes.
The committee feels that the change,
recommended in the laws relating to
the taxation of certain public utilities
and of the property Of the steam rail-
roads should be considered and per-
fected by the regular standing legisla-
tive Committee on the District of CO.
liumbia; that to perfect such legislation
would require more time and considera-
tion, including the hearing of those in
terested and affected by the proposed
changes, than this committee is iusti-
fed or warranted in taking for that
purpose.
The committee thinks that the ma Tor
problem assigned to it, and the one
chiefly in the minds Of the members
Of the House Of Representatives when
the resolution creating the committee
was passed. was. as stated in the first
paragraph Of the resolution "to investi-
gate the various elements. factors and
conditions which may be deemed peril
nent and essential to the accumulation
Of data and information bearing upon
the question Of fiscal relations between
the United States and the District Of
Columbia and to recommend TO the
House what amount. in their Judgment
the United Stetes should contribute an
nually toward the development and
maintenance Of the municipality" and
it has devoted a large portion Of its
time and study, with the assistance Of
its tax expert, Mr.. Lord, to this feature
Of the resolution. In view of the facts
developed in its investigation and study.
and the findings, as before set out in
this report, how much should the
United States, in the language Of the
resolution, contribute annually toward
the development and maintenance of
the municipality" Of the District of Co.
| lumbia?
Congress Has Dual Obligation.
This question like many other gov
/ ernmental questions, is not susceptible
of exact determine ton" but is a cues
ton that Congress is obliged to pass
upon every year in the passage Of the
annual appropriation bill for the Dis
trict. In the performance of this duty
/ Congress has dual obligation TO per-
! form. 1t must be fair 10 the people of
/ the District and IT must be fair to the
people Of the Nation who live outside
/ the District 1t is the principal cues
tion assigned to this committee to an
swer and 10 report upon.
| There is no serious dispute about the
principle to be followed in working out
an answer 10 the problem The diff
/ Guilty comes in its application.
| The witnesses appearing before the
committee from the District very gen.
orally, if not without exception, agreed
| that the people of the District should
! pay in taxes about the same or bear
about the same tax burden as people
| Of other municipalities throughout the
United States of like size and advan-
tages, but the majority Of theme were
tenacious In their contention that they
are already doing that and many in
genuous arguments are advanced to
! prove that contention. The Joint Com
people Of Washington pay a tax COM
parable in assessment rate and amount
to that tax paid by the residents Of
other cities similar in population and
locatio to the City of Washington"
The report of that committee went
en- to say: We find after most care
full consideration of all of the evidence
and circumstances as shown to exist al
this tine that there is no reason for
any arbitrary rule of proportionate con-
| tribut!on for the expenses Of the Dis
, trict Of Columbia by the residents there
| of and by the people Of the United
! States: that the correct rule should be
I that the responsibility in taxation Of
the residents of the District Of Colum-
bia be ss fixe3 and certain as the re-
sponsibility Of residents OF other Ameri-
| can cities comparable with the City Of
Washington; that with the payment o.
! such taxes as may be equitablT and
properly assessed against privately
owned taxable property, the financial
responsibility of the residents Of the
District should be concluded"
The Morrill, Joint Select Committee
of 1874 reported that the District may
properly be required to make that just
contribution to the current annual ex-
penses. the interest Of the public debt
and its ultimate payment, which a peo-
pie so situated as pared with other
communities may be required to pay for
like protection, privileges ana immuni-
ties"
Correct Formula Believed Found
The committee believes that the cor
rect formula is stated in these reports
as above quoted, and 1t is happy to say
that that formula is generally accepted
as being correct by students Ct the situ-
alton b0th in and out of the District
The committee has no doubt that
every one in the United States desires
the National Capital to be one of the
best and most beautiful capitals in the
world and that it forever be maintained
as such and that Congress shall. if
necessary, from time to time, assist
financially in maintaining 1t at a stand
ard that shall be excelled by no other
capital. The amount of this financial
assistance should be measured largely
by the amount necessary to conduct the
| governmental Affairs of the District in
an efficient and economical manner over
and above the amount of revenue de-
rived from the taxation of private prop
/ erty, license fees, etc. The rate of tax
imposed on private property to reason
ably approach the average rate OF taxa
| ton in the other % cities Of the ccm-
parative. In other words, the amount
of Federal contribution toward the ex-
penses OF the District government should
be based largely on the differences in
the amount of revenue derived from the
taxation OF properties levied on the basis
OF fair and equitable tax rate, together
with the revenues derived from specific
taxes. license fees, fines. etc, and the
total amount of money that the District
needs to conduct the District govern
ment In manner that shall be a credit
to the District and the Nation. There
are few indeed who seriously dispute the
correctness Of this statement
| On this basis the committee has made
the study 1t has to ascertain with as
much def1niteness as it is possible to do
how the tax burden of the District COM
pares with the tax burden in cities Of
similar size and advantages. with the
! lnfN taA4 kI,,-