Evening star., 1934-05-01
Increase the Lump Sum.


Senator Thomas Is obviously seek
A., ing some measuring rod by which to
gauge the size Of an equitable lump
sum payment to the District of Co
lumbia. He has learned from Assessor
, Richards that If the United States ap-
= piled the current tax rate to its real
+, estate holdings alone (as a rough
: guide to the partial extent of its obli-
gations) the tax" would amount tc
. about $7,500,0O0. He evidently wishes
: to learn from Director Of the Budget
Douglas more about the bureau,
somewhat obscure policy toward the
District.
One must search in vain for any
consistent, reasonable or equitable
policy behind lump-sum reduction as
it has been made. The figure pro-
posed by the House stands alone
reasonable relation either to the Fed
eral obligation, which it is supposed
to represent, or to the local revenues,
. which it is supposed to supplement.
The reduction from $500 900 to
= Sits 900. which prevailed for one
year, was not based on any reasonable
attempt to measure the correct
amount of the lump sum. The Senate
had agreed to reduce the $500, 600
. lump-sum figure by ten per cent. COM
parable to reductions in other Federal
appropriations, but was forced by the
House to agree to $7,775, ,000-merely
+, compromise figure. unrelated to
anything except compromise. When
the Budget Bureau proposed the re-
duction to s5,7o0, 900, this figure was
supposed to represent reduction OF
about Is per cent in Federal appro-
: priations, carrying out a campaign
pledge to reduce appropriations. But
it really represented reduction OF
about AZ per cent from the normal
appropriation. Since 1882. which
might be considered the last year OF
normal appropriations. District appro-
: priations have been reduced about Is
per cent. But the lump sum proposed
by the House would represent re-
duction of over 54 per cent.
Senator Thomas has expressed
himself as an advocate OF the flxeo
ratio system of sharing expenses be-
tween the National Government and
the local community. Those who,
like Senator Thomas, have made
themselves familiar with the practical
equities involved, will agree that a
return to the principles of unrepealed
substantive law is the only fair
method of jointly financing Capital
maintenance and improvement.
Pending return to that system, and
to prevent further inequities which
become more glaring with each ap-
preparation bill, the lump sum should
be substantially increased.
The proposition has been revived,
by Senator Thomas queries to Asses
sor Richards, of measuring the partial
extent of the United States obliga-
ton by what Uncle Sam would pay
as a municipal taxpayer on his real
estate holdings alone. The Bureau OF
Efficiency developed figures on this
obligation in terms Of real estate,
tangible and Intangible personal
property holdings. And to this sum
the bureau added additional items for
consideration, such as the loss OF
revenue to the District resulting from
excessive real property exemptions,
the extraordinary local expenditures
resulting from the fact that this Is
the National Capital and the cost
of excess park purchase and park
maintenance.
The sum of such obligations was
expressed in tangible figures-$l0.-
183,39l, which is more than twice
the sum proposed by the House. A
lump sum based on realty property
holdings alone would be over three
millions in excess of the amount pro-
posed by the House.
Such expressions of the Federal
obligation do not take into consid-
Grafton the equitable factors relating
to the National Governments having
planned a National Capital on a scale
beyond the resources of a self
supporting, commercial city either to
carry out or to maintain. 1t does not
take into consideration the financial
obligation which is coupled with ex-
elusive political power.
The assumption and exercise Of ab-
solute and exclusive legislative power
by the organic act were coupled with
recognition Of a pre-existing and con-
tinuing financial obligation. The Ma
ton cannot equitably repudiate or
reduce to a minimum its financial
obligation and retain and exercise its
full despotic and exclusive power to
tax and to govern.