Evening star., 1933-02-12
An Unjust District Bill.

reported yesterday to the House Is full
of injustices and inconsistencies. It
purports to carry into effect certain
economies that in reality represent flag
rant waste.
Should the House proceed to thor
ough and statesmanlike consideration
of this measure numerous changes
would be made as matter Of course
and as a matter of decent considera-
ton Of the welfare and interests of the
unrepresented citizens of this COM
munity.
Without attempting here to present
o complete analysis Of this measure,
adequate descriptions Of which are
printed elsewhere in these columns to-
day, the chief points upon which the
bill is subject to attack may for the
sake Of clarity be discussed as follows:
% BY applying the national economy
provisions to the District bill and max
ing other eliminations and reductions of
proposed expenditures, the bill Is cut
$685., ,205 below the estimates SUBJ
mitted by the Commissioners. The
committee applies s1,275,000 of these
reductions to cut the Federal lump sum
from $7,775,00 (agreed upon last year
as temporary compromise) to $6,500,-
600. At the end Of the next fiscal year
there would be surplus Of unspent
local revenues in the Treasury amount
ing to SIS, ,060, ,205, and after taking from
that amount gasoline tax revenues and
water revenues which Of themselves
represent separate surpluses, there is
left surplus of general tax revenues
amounting to $4,32s,205. In other
words, local taxpayers are being ex-
cessively taxed by the amount Of the
surplus. Instead Of applying the sur
plus to reduce local taxes, which Is be-
ing done everywhere else, the commit
tee uses a part Of it to reduce the Fed
eral Governments lawfully obligated
share Of local expenses and proposes to
place the rest Of 1t In the Treasury,
there to accumulate non-hterest bear
ing cobwebs, saving nobody anything,
doing nobody any good. The bill spe-
cifically forbie.s q reduction in local
taxes,
CD All Of the reductions are made
in the name Of economy. Economy to
whom? Economy to what purpose?
Gasoline tax street repairing funds are
cut out, although the money thereby
saved cannot be used for anything
else. Construction items are eliminated,
although the money 50 saved only
goes to reducing the lump sum or ac-
cumulating a surplus in the Treasury
q surplus, In turn, that Is not avail
able for Federal budget-balancing as it
is credited to the District of Columbia.
Every cut in local item means throw
ing somebody out Of Job. Street
work, sewer work, other construction
work, providing jobs for men who need
jobs and representing in themselves
minimum necessary Capital city i'm
provement, are laid aside. later to swell
the local tax burden. There is no
rhyme or reason in 1t.
(3) On top of cutting down expendi-
lures, thereby adding to local unem-
ployment and piling up a general tax
revenue surplus exceeding four million
dollars, the committee proposes to in
crease the local tax burden by half
million dollars by adding a dollar a
thousand tax to the present five dollar
rate on intangibles. The rank incon-
sistency Of such proposal is self-evi-
dent. This slap at the local taxpayer.
bearing down heavily on widows and
others dependent upon investment in
shrunken securities, is proposed as q
method of assuring the use OF local
revenues for local relief. The proceeds
from the additional tax on intangibles
would be earmarked as special local
relief fund There is, Of course, no
earthly reason to assume that one
sixth Of the yield from proposed six
dollar tax on intangibles, paid by local
taxpayers, is any more local revenue"
than the remaining five-sixths' yield
All Of it is local money, paid by local
taxpayers.
AS a matter of fact. the proposed in
crease in the intangible tax would
probably not yield the half million dol
lars alleged to have been anticipated
The additional tax will drive out in
tangibles. The yield has been steadily
diminishing. and the greater tax will
ttnd to diminish 1t further. Even If
the yield came up to the estimates.
st would not be enough to supply the
$685. urgently needed for local un-
employment relief. That, however,
does not disturb those Of our legs
lators who complacently regard the To-
cal unemployment situation as better
than any other city OF comparable
Size" as If that had anything to do
with the actual facts with which this
committee was supposed to deal. The
Fact is that more than six thousand
local families, comprising a part Of
the city's $4,000 dependent unemployed,
are now living on a pittance Of $3.50
a week for family Of four from public
funds, and the number increases every
day, and there Is not money enough in
prospect to feed them fer the remainder
of this calendar year. The committees
method of dealing with this grave
problem is indefensible.
It Is of more than passing signifi-
canoe and interest to Washingtonians
that Representative Simmons Of Ne
braska long a chairman of the sub
committee on District appropriations
washed his hands of the matter In