Evening star., 1934-07-03
No Tax Increase Justified.

The dollar-and half tax rate for
the current fiscal year was pretty well
forecast in advance of the Commls-
sioners' order yesterday making 1t
effective. OF special interest to local
taxpayers now are Auditor Donovan's
tentative remarks concerning the out
look for the fiscal year 1886, estimates
for which will soon be in preparation
at the District Building. Mr.. Dono-
van suggests:
. the strong probability OF the
need for an increase in the tax rate
for that wear. Had it not been for the
surplus of S4.348, ,524 in 1885 drought
over from 1884 it would not have
been possible to continue the 81 30
rate in the coming fiscal year. AS
shown by the statement presented
earlier in this report. the revenue
surplus at the end of 1885 (June 30
nexO based upon conditions as they
can be foreSeen at this time, is only
S29,3 1853 This means that the fiscal
year 1886 will commence with prac-
tically no surplus, and the District
must depend wholly upon current
revenue for that year in framing the
budget. And this in turn raises the
question of the Sufflciency OF the
Federal contribution and whether or
not new sources of revenue should
not be deYiSed-thrOugh legislation
to keep from increasing the tax load
bvr
are matters which might very well
be considered at the time when the
Commissioners hold their public hear
ings on the District budget for the
fiscal year 1896.
1t is difficult to believe there will
be any great disadvantage to the Dis
trict resulting from resumption of the
sound practice of depending wholly
upon current revenues for the fiscal
year for which estimates are to be
made. The accumulation of surplus
revenues in the paSt-WhiCh meant
nothing more nor less than excessive
taxation, for taxation is excessive
is spent-has in the main been hurt
full, rather than helpful, to the Dis
trict. The tax reduction last year.
and its continuation this year, was
possible because there were surplus
revenues, tax reduction being chosen
as the wise alternative to permitting
these surplus revenues to remain un-
expended. But for several years pre-
viOus to the tax reduction Congress
permitted surplus revenues to accu-
mulate without giving the District the
OffSetting benefits either of their wise
expenditure or of the delayed tax re-
spent, the expenditure, as in the case
of the Municipal Center development,
tended to work a hardship on the
local community.
The aim of the Commissioners, and
Of Congress, should be balanced local
budget, wherein expenditures approx
innate the revenues collected from
taxation, leaving no idle, unused
funds to be boarded in the Treasury.
When the 1886 estimates have been
completed and the Commissioners
carry out their promise of discussing
them in open hearing with citizens,
more will be known than is known
now about the need confronting the
city next year. But if these needs
surpass revenue availability, the def
icit should be covered by increasing
the Federal contribution to a point
representing adequate recognition OF
the Federal obligation to the Ma
tional Capital. After that has been
done-but only when that has been
done-does the question of increasing
the local tax burden, relatively high
now. become subject to fair consid-
Grafton.