Evening star., 1932-05-20
The Only Fair Solution.

or a drastic curtailment of necessary
items for normal maintenance and i'm
provement, existing revenue must be
supplemented either by increase of the
Federal contribution to the District OF
by an increase of local taxation.
The question, then, relates to the
source of the increase-whether that
source lies in an increase Of the Fed
eral contribution or an increase IN the
local tax burden.
Unrepealed substantive law, as amend
ed, provides that the expenses OF the
pistrict-excllsive of certain funds
such as gas tax revenues and water
revenues-are to be met by dividing
the cost between the District and the
Federal Government in the proportion
of sixty per cent and forty per cent, re-
spectively.
Since the fiscal year 1925 the Fed
eral Government, through temporary,
annual riders on local appropriation
acts, has evaded the provisions Of sub
stantive law. The evasion has been
possible through application of House
parliamentary rule. the principle OF
which is that legislative riders on ap-
propriation bills are in order when they
reduce Federal expenditures. 1t is a
rule. In other words, that works only
one way.
As the expenses of the District have
increased, the Federal contribution has
been proportionately decreased. All ad-
ditional costs of running the Federal
city have been showed to the shoulders
of local taxpayers There is no de-
batable question in the fact that the
District has met its share of the costs.
And it is an undeniable and demon
strable fact that the Federal Govern
ment has not met its share.
The necessary increase Of revenues
for support of the Capital should be
made through increase Of the Federal
contribution.
This increase has been prevented, SO
far, mainly on the assumption that the
District Of Columbia taxpayers escape
what might be construed as q payment
of fair, adequate local taxes. The
theory has been that even though the
proportionate share Of District ex-
penses set forth In unrepealed law, self
imposed by Congress, has been exceed
ed by local taxes, these taxes are not
productive of the local revenues that
would be forthcoming If the people OF
the District were taxed as heavily as
the people OF other municipalities are
taxed
Washington citizens have contsnded
that such an assumption Is false, be-
cause the District, as is demonstrated
in fair comparison with ether cities, Is
already adequately and heavily taxed.
That demonstration was ccnvincingly
made at the session of the Senate Sub
committee on District Appropriations
last night by the spokesman for the Citi-
zens' Joint Committee on Fiscal Rela-
tions Between the United States and
the District of Columbia. Through a
carefully compiled volume OF statistical
tables, the citizens delivered a triple
attack on the theory that Washington
Is undertaxed.
One set Of tables showed the mis-
leading and false conclusions relating
to comparable tax burdens reached
when, as in the case of the House
Select Committee on Fiscal Relations
(better known as the Mapes Com
mittee) the tax burden Is pictured by
utilizing a guessed-at ratio of assessed
TO full value of property in order to
adjust" tax rate When this method
of comparing tax burdens is utilized
and applied to many cities unbeliev-
able and absurd showings result.
The demonstration was also made of
the lopsided showings resulting when
there is failure TO take into considera-
ton and to eliminate from compari-
sons the proportionate part Of local tax
burdens consumed by interest and sink
ing fund payments on indebtedness.
and by the payment Of State taxes
these items varying with local policies
of expenditure and with State practice
of taxation. When they are not elm
mated, there is no real showing of cur
rent city tax burdens, and the COM
parison of current city tax burdens is
the real objective.
But when actual, not theoretical,
guessed-at figures are used, either in
totals or In per capita, more accurate
comparison of city tax burdens results
Such comparisons were made by the
citizens and in tabular form presented
to the Senators as proof that Wash
1ngton bears a tax burden that Is
normal In relation to the tax burdens
Of other cities, and Is even high when
interest payments and State taxes arc
deducted. When Washington's total
per capita tax levy exceeds that OF
sixteen of the % cities with which
it was compared by the Mapes
Committee tax levy being reduced
10 that necessary for current city
maintenance) Washingtonians cannot
be said TO be undertaxed. When the
same comparison is made between the
sixty-four cities of the United States
OF more than 125,0oo In population
and Washington's per capita total tax
exceeds 54 of them, Washingtonians
cannot be said to be undertsxed.
The complaint is made that the citi-
sens Of the Nation, outside of Wash
tngton, are taxed exorbitantly to con-
tribute to the Capital through the lump
sum. Such complaints were reduced to
absurdity by tables presented by the
citizens, which show how the Washing
tcnian. contributing at both ends, pays