Evening star., 1933-11-08
First Remove Existing Inequities


the Senate District Committee, and
Representative Howard Smith of the
Northern Virginia district adjacent to
Washington, are interesting themselve5
in way and means to lower the local
real estate tax. They approach the
subject, however, from two different
points of view.
| Senator King believes a sizeable re-
/ duction in the real estate tax could be
accomplished ~ enactment Of a local
/ income tax, which at the same time
would be substituted Eor the present
/ levy on intangibles.
Representative Smith, receiving COM
plants from the gasoline dealers in
Virginia because Of the differential of
8 cents between the local gas tax and
the Virginia gas tax, suggests that the
gasoline tax here be increased and that
the proceeds be applied toward reduc-
| ing the real estate tax.
If both Of these suggestions were
adopted the real estate tax, it is true
might be reduced. But to pay for that
reduction the people Of the District
would be compelled to pay more in
total taxes than they now pay; the local
burden Of taxation would be increased.
The income taxpayers, by reason of
the increased Federal imposts, are
now paying taxes which approach
the limit the traffic will bear. Auto
mobile owners are excessively taxed
already, in the sense that they are being
compelled to pay more in taxes than the
appropriating authority will permit to
be spent The unwise tendency to free
the gasoline tax revenues for general
revenue purposes is exemplifed In some
Of the States, where good horse has
been worked to the point Of exhaustion.
The inequities of that situation would
be increased in the District of Columbia
where automobile owners would be
heavily taxed to relieve the National
Government of Just obligations.
But without going into the merits
now Of new and heavier forms of .axa-
ton, the guiding principle for our legis-
lators. Of course, should be the imposi-
ton Of fair and adequate taxes. But
fair and adequate local taxation should
be coupled with q fair and adequate
Federal contribution, which will permit
Of sound and progressive development
and maintenance Of the Capital The
amount that the people of the State
of Virginia choose to tax themselves
has nothing to do with the case.
To consider the imposition of new
and heavier forms of taxation ON the
District at this time is to put the cart
before the horse. The people of the
District of Columbia are already being
taxed for the accumulation Of unneces-
sary surplus revenues. In the cases
of the gasoline tax and water tax, sur
| plus revenues which Congress made
available for expenditure in the discre-
ton of the Bureau Of the Budget have
been only partially utilized in making
public improvements and giving work
to men who need it. Surplus revenues
in both funds would be carried over and
added to new surplus funds which
would accumulate under the Bureau of
the Budgets sharp limitations i'm
! posed on estimates for 1885.
| The Federal contribution, in the past
three fiscal years, has been reduced more
than thirty-three per cent and from
this reduction the District has lost an
nual revenue amounting to $4,000, 900.
Last Spring Representative Mary
Norton appointed subcommittee of the
House District Committee, which, il
was planned. would meet In advance oi
the regular session and study the prob
lem OF equitable division of expenses
between the local community and the
Federal Government in support of the
Capital. Senator King, who has worked
SO increasingly during the past Summer
IN behalf OF the people of the District
| designated similar subcommittee, head
ed by Senator Copeland OF New York II
has been the Senator's hope that muct
could be accomplished in joint study By
! these two subcommittee. While failure
! to obtain a special rule from the Houst
which would authorize expenses fo
hearings in advance of the regular ses
sion has prevented the House subcom.
rittee from undertaking any specia
study at this time, there is still the pos
sibility Of a joint effort by the Houst
and Senate to make a fair and ex
haustive investigation of the local ta1
burden and of the really adequate con
tribution which should be Forthcoming
from the National Government.
Certainly no new taxes are warrante,
until the study has been made. Ant
as pointed out by Auditor Donovan il
his recent report to the Commissioner:
on the 1885 budget estimates. the pres
ent lump sum lis not believed to be al
equitable Federal payment toward tn
expenses of the District of Columbia
and the question of the proper Fedora
payment toward the expenses of tn
District Of Columbia should be "justl
settled" to remove this important mat
ter from the field Of annual agitatio
and acrimony.'