Evening star., 1933-02-05
The Silent Partner.


than that they emphasdze the eloquent
silence of the non participants in these
discussions relating to the weight of
the local tax burden, expenditure of
local revenues, etc. The non-partici-
pants in the hearings are the unrepre-
sented taxpayers who are most directly
affected by what goes on behind the
closed doors of the committee room.
Present at the hearings are the men,
bers Of the exclusively governing Con-
gress and the officials of the loca! gov
ernment. Ab-ent from the hearings,
except when rarely called upon for in
formation on certain subjects, are the
local taxpayers. The local taxpayers
are not represented by a spokesman or
defender.
Assessor Richards had been called
upon to explain difficulties encountered
by the municipality in collecting real
estate taxes and the decline In realty
tax receipts This year there were more
properties sold for delinquent taxes than
ever before, yet the municipality's re-
ceipts from the sales were far below
those of other years. Mr.. Richards es-
timated that income in the District
from commercial sources had fallen a
pos ible 10 or II per cent. Il know lots
Of cases where salaries have been cut
by 40 per cent, all over the city," he
said. On top Of this has BEEN the cut
in Government pay and the lay-of
without pay of Government workers.
I am afraid, Mr.. Chairman, with the
way in which appeals are coming in
at the present time, that in the next
assessment period we will have great
difficulty in maintaining our valuation
of real estate"
The point of view of the assessor is
to maintain assessment levels, and SO
far they have been maintained. Yet
every property owner knows that 1t is
impossible logically to argue that an
assessment in 1888 should in equity be
the same as IN 1929. But more inter-
esting still is the point of view Of the
subcommittee chairman, Mr.. Cannon:
In your opinion, then, Mr.. Assessor,
we are faced with one of two alterna-
tives We must either levy an income
tax, or we must decrease the cost Of
operation and decrease the amount OF
appropriations for the maintenance Of
the city.
In other words, when one form of
tax becomes so unbearable that the
law of diminishing returns begins to
assert itself, the suggestion is that an
other tax be plastered on the tax
burdened. And when the difficulty ex-
perienced by the municipality in COL
lecting delinquent real estate taxes is
explained to the committee as being
due In part to a weakness in the law.
which will not stand up in court un-
assisted, the remedy suggested is that
the law be strengthened.
Never a word anywhere about the de-
STABILITY Of reducing the tax burden,
the heaviness of which Is what causes
all the trouble! That. apparently, never
occurs to anybody except the taxpayer,
and he is absent from the hearings.
But everybody knows, including the
members Of the subcommittee. that the
fundamental cause Of the Districts
financial difficulties is the failure by
Congress to appropriate the Federal
share of District expenses as provided
in unrepealed law: that the reductions
in this appropriation have steadily
shifted the weight of the burden of
Capital City maintenance to the local
taxpayers, and that reductions in local
have merely provided Con-
gress with the opportunity Of further
reducing its share of the expenses.
There is, therefore, another alternative
which Mr.. Cannon does not mention.
That is to increase the lump sum, in
accordance with the Federal Govern
ment's self-imposed obligations to the
city which it has planned
and which it exclusively governs.
Relief for the local taxpayer does
not figure in the proceedings. There is
a surplus of water funds, for instance,
collected from Increased water taxes.
The increase was levied in order to
pay for improvements, but the i'm
are held up because Of the
In consequence:
Mr.. Cannon-What advantage ac-
crues to the District by having these
various funds to its credit in the
Treasury?
Mr.. Donovan-Not a thing in the
world, Mr.. Chairman.
Mr.. Cannon-They serve the District
only when they are expended?
Mr.. Donovan-Correct, sir. We re-
ceive no interest, of course, as you
know, On our deposits, as We would If
we had those moneys in bank.
The money remains in the Treasury
as idle funds, available only under the
law for appropriations by Congress.
The United States, just as a
bank may use them, but we have a
credit on the books of the Treasury
for this amount Of money.
Now, if we could put this money in
bank we could get or 3 per cent
interest on it and 1t would amount
to something. It would more than
pay the salaries in the auditors Office,
I believe.
Yet there the money lies, without
drawing interest, without working for
those who paid it. And the thought
of reducing water taxes, IN view of the
surplus and the depression, apparently
occurs Ito nobody-except the water
tax payer, absent from the hearings.
Localities where it has been tried are
q NM rnr,t1u rea du fo commend the sales