Evening star., 1933-03-29
ARBITRARY BUDGET SLASH
WOULD HOARD 3 SURPLUS
D. C.. FUNDS in TREASURY

steadily increasing. Some Of the in
crease, Of course, Is accounted for by
new construction. But for the last few
years new construction has been at a
minimum. The remarkable thing in
Washington is that there has been an
increase In assessments instead of a
drastic decrease. Most home owners
know from bitter experience that their
real estate taxes today, when sales are
few and far between and property
values are deprecated. are as high, If
not higher, because Of the unyielding
assessment, as in 1928 and 1929, at the
peak Of prosperity, when values were
inflated and the market in real estate
was relatively active. Owners of busi-
ness properties have found, from bitter
experience, that the voluntary-not
forced-sales price for property today
Is In numerous cases below the figure
at which the property is assessed for
taxation purposes.
TaX-Uennquent LAST Mounts.
1t is going to be practical impos-
sibility. with reductions in salaries and
increasing local unemployment, for
many home owners to meet fixed
charges on home purchase and at the
same time pay their taxes. The mu-
nicipality has the highest tax-delin-
quent list in history today. and nobody
to buy up the tax titles. The law of
diminishing returns, in relation to the
real estate tax, is beginning to assert
itself with vengeance. There should
be relief.
It should be relief afforded through
assessment downward of real estate
properties, and possibly through reduc-
tion In the real estate tax rate. This
rate IS comparatively low among the
cities. 1t is the target for uniformed
attack by members Of Congress who
seem to think that tax rate and tax
burden are synonymous. The reason
for Washington's relatively low tax rate
Is because of the excessively high as
sessment at 100 per cent, demanded by
law and vigorously enforced by a con-
scientious tax assessor who must defend
his assessments before every session of
Congress.
There is no reason why the real
estate tax rate should not be reduced.
The Budget Bureau has cut appro-
priation estimates to the point where,
If Congress followed them, the District S
expenditures from general revenues
would be reduced below the level OF
the fiscal year of 1925.
The Budget Bureau proposes expendi-
lures from general revenues for the
next fiscal year of s2S,O37,8O0. The
general revenue appropriations for the
fiscal year 1925 were s31,175,672.
The tax rate for the current fiscal
year is s17O. In 1925 the rate was
s1.40.
In 1925 the real estate assessment
was s8l9,625,572.
In 1888 the real estate assessment
is s1,22s,a5s, ,566.
Ten cents in the real estate tax
rate produces s1,8O0,OO0.
30-Cent Cut Reasonable.
With a potential surplus of general
revenues amounting to $6,2OO,000, the
real estate tax rate could be cut by 80
cents, or to the level Of 1925, and there
would still be a balance in the general
revenues of approximately $1,000, ,OOO
But there is in addition a gasoline
tax surplus, if the present rate OF
taxation is continued and the budget
estimates prevail, amounting to 81 ,8OO,-
600. This money Is not available fol-
anything else than street and road i'm
provement. A 2-cent gasoline tax
yields about 1892, ,7Os a year. If gaso-
line tax money is to be unused and
is to lie idle in the Treasury, why not
cut the tax in half and save the tax
payers at least s9e6,354? There would
still be a comfortable surplus of un-
used gas tax revenues.
The water fund surplus will amount
to $l,200,000. A few years ago Con-
gress boosted water taxes 25 per cent
IN order to carry out some betterment
work that would improve the system
Now the betterment work has beer
matted. The water fund money can be
uSed for nothing except for i'm.
pro"ments to the water system. Il
the improvements are not made, why
tax the property owners? Congress.
graclously permitted, in the defunct ap-
preparation bill now revived by the
Budget Bureau, a 10 per cent discoun,
Tor the fortunate water-tax payers
able to pay their bills on time. Why
not extend some benefit to the unfortu.
nate Water-tax payers who, because OF
tnelr various misfortunes and mishaps
may not be able to pay their bills on
Time? They are the ones who stand in
greatest need Of relief. Their water
taxes could be cut by a comfortable
margin, and still leave unused water
FUNDS impounded in the Treasury while
unemployed ditch diggers draw thei,
weekly $3.50 from the Board of Public
Wel1are's- unemployment relief fund.
"A drastic reduction by 26 per cent oi
municipal expenditures, even though i,
carried with it needed reduction ir
taxes however, is not wholly desirable
thing for the community. It mean:
additional unemployment. It means thu
postponement of public works. It mean.
curtailment of municipal services, thu
closing OF libraries, the crowding o1
schools. the lowering of all standard.
n1llnlninoI orlr