Evening star., 1934-09-18
The Important Point.

It is sound procedure, on the part
OF the Commissioners, to emphasize by
any method they may choose the fact
that improvements and larger expendi-
lures on municipal maintenance cost
money. Under certain circumstances
1t would be equally desirable, through
pertinent questions to taxpayers as to
their preference between higher taxes
and larger municipal budget, to drive
home the fact that money, even under
the New Deal, does not grow on trees.
But in the discussions of budget
estimates for next year it is impor-
tant that more attention be given to
the whole picture of fiscal relations
between the District and the National
Government 1t is not enough to say
that the estimates of department
heads total some s46,000,000 of gen.
eral fund expenditures; that estimated
income of the District from general
fund items totals some $4,000, 900;
that If the deficit between income and
outgo is to be wiped out, higher local
taxes are necessary, and then to bait
the citizens with leading questions as
to their willingness to accept higher
realty taxes, local income taxes, addi-
tional automobile taxes, or whatever
forms Of new and higher taxes might
be suggested.
In the first place, preliminary budget
estimates submitted by the depart
ment heads represent form Of shoot
ing at the moon which everybody un-
derstands and more or less condones
as justified. If department heads do
not ask for everything they can think
of, they will later be accused Of neg
lecting to look ahead. They know
from experience that their preliminary
estimates will be cut and cut again
when such requests are viewed in re-
lation to the whole.
The amount of difference between
fundamental District needs and esti-
mated District revenues to meet these
needs is, therefore, not known, but it
will be considerably less than the
difference between the preliminary
estimates and the preliminary guesses
as to revenue availability.
But the really important consid-
Grafton is whether District citizens,
committing themselves in advance as
willing to accept higher taxes in re-
turn for needed municipal improve
ments, would obtain both, or whether
they would merely get soaked with
higher taxes and receive none Of the
Improvements.
How has the arbitrary reduction Of
the Federal contribution in past years
been brought about? Certainly not
through any lessening in the need for
municipal development. The Federal
contribution has been reduced, at the
expense of the local taxpayers, by de-
creasing the Federal share and in
creasing the local share Of National
Capital responsibilities. If the wishes
Of some members of Congress were
realized, local taxation would be
quickly increased, not to increase ex-
penditures in Washington, but to re-
duce further and possibly to eliminate
altogether the Federal contribution.
The subject of higher local taxation
should be viewed against the back
ground of fiscal relations. Residents
of the District have never lodged
legitimate taxation, nor sought to
dodge necessary taxation. The ex-
PLANTATION of insufficient local revenues
to meet demands of Capital develop
ment does not lie in the fact that the
District is undertaxed now< The cure
for the lack of revenues, in relation
to needs, does not consist in slapping
new taxes on the District.
When the Nation, the controll-
ing partner in Capital development,
meets its proportionate share of
the expense, it will be time to discuss
the advisability of higher local taxa
ton in return for specific, guaranteed
benefits. Until then, glib chatter of
higher local taxes is entirely beside