Evening star., 1935-04-14
D. c. TAX RATE
SHOWN IN REPORT
Treasury Survey Proposes
Further Study of Fiscal
Relations Problem.

President Roosevelt yesterday sent
to the chairmen of the Senate and
House District Committees the report
on fiscal relations by the Treasury De-
partment which he requested last Fall
The report, covering about % pages
of typed matter, in addition to supple
mentary tables, was summarized by
the President in his letter as follows
MY Dear Mr.. Chairman:
II am transmitting herewith re-
port prepared by the Treasury Depart
ment, at my request, on the taxes paid
lumbia as compared with the taxes
paid by residents in other roughly
comparable cities.
Holds Taxes Lower.
"In general, the Treasury found
that the actual money cost of govern
ment per capita to residents of the
District is beloV that in other cities
Likewise, the total taxes paid by each
of several different examples of
property owners is lower in the Dis
trict than in any other city of between
100000 and $4,000 population for
which the data are available. The
total taxes paid by the owner Of a
small house, the owner of substantial
business block or business enterprise,
or the owner of large hotel or apart
ment house, are in each case smaller
in the District than in any other OF
the Is cities studied.
The report of the Treasury points
out, however, that limitations of time
and expense prevented a thorough
going analysis of certain factors other
than direct money costs and tax rates
that may or may not deserve con-
sideration in this connection.
"Very sincerely yours,
'FRANKLIN D. ROOSEVELT"
The report, after brief description
of the history of the fiscal relations
controversy. declares at the outset
that continued controversy, both in
Congress and among the District tax
payers, indicates that no generally ac-
ceptable solution of the problem Of
equitably distributing the cost of the
District government has yet been
made"
Cites Two Problems.
Broadly speaking, says the report,
two separate problems may be dis
tinguished:
"GD In point of fact, are the tax
payers of the District of Columbia
bearing heavier total burden of tax
alton than the residents of other cities
of roughly comparable size and char
acter?
"(2) In view of the special char
acter of the District of Columbia and
of its relationships with the Federal
Government, what considerations
should govern the determination of
continuing basis for Federal contri-
buttons?
Investigation Limited.
"In attacking the first of these
problems, it Is to be emphasized that
there has been no extended inveStiga-
ton of the quantity and quality of
the services rendered the residents of
the District of Columbia as compared
with those rendered in other cities.
Such an investigation would require
considerable time and funds. The
Treasury Department would be glad
to undertake it, if desired. The pres
ent analysis Is confined to the ma
terials readily available, which are
those usually employed in this type
of inquiry"
Proceeding to an investigation Of
general property taxes, the report
states that while the rate of taxa
ton on general property offers pre-
liminary crude measure of the COM
parative tax burden of different cities"
there are, howevA. differences in law
Continued on Page 4. Column 81