Evening star., 1934-12-06
Scope of Fiscal Relations Inquiry.


Senator Thomas believes the Presi-
dents recommendations will govern
congressional action on the 1886 Dis
trict bill, preliminary hearings on
which are expected to begin within
a few days before the House Sub
committee on District Appropriations.
If there were a general understand
ing to this effect on both sides Of the
Capitol before the District bill is
shaped by committee and put through
the House with characteristic haste,
some of the confusion now threatened
might be avoided.
The President was petitioned by citi-
zens of Washington to make certain
recommendations through the Bureau
Of the Budget. which would tend to
prevent the continuation of specific
inequities in the District BILL one Of
them being the steady reduction of the
lump sum. His indirect reply was to
state his intention of satisfying him
self as to the adequacy of the local tax
burden, in comparison with that of
other cities, with the implied sugges-
ton that, with such information in
hand. he would attempt to end the
"hit-or- miss policy" which he char
Acterized as having marked the fiscal
relations between the local community
and the National Government.
The hope of Washington is, of
course. that the Presidents inquiry
will only begin with an examination
of comparable tax burdens. and that it
will be carried through to its logical
conclusion by thorough consideration
of all the other important factors
which affect the fiscal relationship.
Such an inquiry would naturally re-
quire some time, and experience has
shown that unless the results are
fairly applied to the bill before Con-
gress, any promised benefits are lost
to the community and the next years
bill raises the issue again. AS long
as the President has determined to
investigate the fiscal relations issue,
there should be some understanding to
apply the result to the pending Dis
trict bill.
In his interview with The Star,
Senator Thomas was quick to point
out yesterday that a primary con-
sideration governing appropriative
policy toward the District is that
Washington is the Capital "and must
be developed accordingly" One of
the chief grievances of the politically
impotent local community has been
the tendency in certain influential
quarters in Congress to disregard this
fact entirely. Revenues from local
taxation in recent years have been
utilized, not to carry forward ade-
quate maintenance and upbuilding of
the Capital but to reduce the Federal
contribution. The important ques-
ton before the President, along with
the adequacy of local taxation, is the
obligation of the National Govern
ment in respect to the American Capt.
tai. As long as the disproportionately
heavy burden of Capital maintenance
and development is placed on local
taxpayers the District will continue
to suffer the shameful neglect of i'm
portant community services and func-
tions which is reflected today in
many quarters. No matter how plas-
tered and soaked they might be with
new or higher taxes, local taxpayers
cannot carry the load of Capital City
maintenance and development with
out recognition by the National Gov
ernment of its own peculiar financial
responsibility.
The determination of this respon-
sibility after thorough investigation
of all the factors which govern it is
the result which Washington antici-
pates from the Presidents proposed
inquiry.