Evening star., 1933-04-02

about IS per cent. This tax boost ha.
continued to yield money. But tht
Budget Bureau and Congress have halt.
ed the program. This money canno'
be used for anything but water system
maintenance and improvement. If al
of it is. used that will be available II
1894, Congress can enable the Com.
missioners to spend more than mil
lion dollars extra and above the budget
estimates during the next fiscal year
putting men to work and making the
necessary water plant improvements
But II that is not done. the taxpayers
obviously should be entitled to whatever
reduction in water taxes will be pos
sible to keep the money in their pock-
cts instead Of in some locked-up vault
at the Treasury. As the water tax
rate Is fixed by act Of Congress, the
rate can be lowered only by act Of
Congress.
There Is also a gasoline tax fund
Money for this fund, like money fol
the water fund, is contributed wholly
by local taxpayers. The Federal Gov
ernment pays no gasoline tax. II the
Budget Bureau recommendations pre-
vail, more than a million dollars will
be piled up In this fund and employ
ment will be denied to some 1000 able
bodied men anxious to earn living
If Congress puts this million dollars tc
work by spending 1t, its members Will
have the satisfaction of knowing that
in addition to appropriating $500, ,o0o,-
900 for the relief of the unemployed
by direct grants to the States, it will
have enabled men in Washington tc
earn money on necessary local street
work, instead Of having to beg 1t from
the charitable agencies.
But II the money Is not spent, the
gasoline tax is twice as high as 1t
should be. AS the rate Is fixed by Con-
gress. it can be lowered only by act
Of Congress.
The Third Fund.
The third fund is the fund from tax
alton of real estate, personal and intan-
gible property, and other forms Of gen.
eral taxation that make up the general
revenues Of the District Of Columbia.
It is to this fund-the general reve-
nues-that Congress makes its annua,
contribution to the support Of the Capt.
tai The Budget Bureau has cut the
contribution by 26 per cent, reducing
it from $7,775,oo0 to $5,7oo,000. But
it is to be remembered that the reduc-
ton in the last two years has been 4C
per cent-or from Ss,500, although
the Federal Governments obligations to
the Capital have increased rather than
diminished.
II the Federal contribution is cut
there should be some relief to the gen.
eral taxpayers, and more particularly
the real estate taxpayers. But as II
is unlikely that taxpayers are going
to be given a benefit in tax reduction
equal to that the Federal Government
is giving itself in reducing its lump.
sum contribution, Congress should pre-
vent the accumulation of any local sur
plus revenues in the Treasury by pro-
viding wisely for their expenditures.
The House eliminated from the ap-
preparation bill for 1884, which was
killed in the last Congress, the pro-
vision inserted annually for several
years previously prohibiting the Com
missioners from reducing the local tas
rate. The Budget Bureau, in sending
forward the new bill, also eliminated
that provision.
All that is required by Congress un-
der ordinary circumstances to bring
about a reduction of the local tax bur.
den is to leave the Commissioners fret
to exercise their authority in fixing q
tax rate that will yield the revenue.
Congress has appropriated. II Con
gress does not provide for spending al
the revenues produced by a tax rate o.
$1.7o. for instance, the Commissioner!
could lower the rate to whatever
amount is necessary to finance ths
appropriation.
Basis for Rate Cut.
It would be impractical for Congress
to order a specific reduction In ths
rate. The rate should be based on ex.
pert and the latest available estimat,