Evening star., 1935-04-14

9E,CZS, WIlllC OllC IAAAiAAoA4-aoA4oA W.
poration in Washington would pay
taxes of $4,000 compared with taxes
Of $28,110 elsewhere.
The report concludes with the fol-
lowing discussion Of the status Of the
District of Columbia as q determinant
of the amount of Federal appropri-
ations toward It's support:
Thus far, the attempt has been
made to measure the reasonableness
of the tax burden borne by the resi-
dents of the District Of Columbia
solely by comparison Of its tax rate
and per capita money cost OF gov
ernment with those OF other cities.
1t may be contended, however, that
the peculiar status of the District
makes such a comparison unsatisfac-
tory as a measure of the reasonable
ness of the tax burden, even If sup
plemented by a thorough analysis OF
the comparative character OF the
services rendered.
Factors Are Cited.
81. 1t may be argued that. In point
of fact, the District has no rural and
State projects to support and that its
governmental expenses should there
fore be lower than those OF other
cities. Further. 1t may be contended,
agencies of the Federal Government
constitute the correlative OF the i'm
portant industrial and commercial
enterprises existing in other large
cities and that the exemption of
Federal properties from taxation
therefore unduly concentrates the
burden of the District expenses upon
other property owners, except to the
extent that this Is mitigated by Fed
eral contributions to the revenues of
the District. It has also been con-
tended that, by reason Of its position
as the seat of the National Govern
ment, the District is obliged to under
take important expenditures, such as
those on parks and streets, that are
not undertaken on the same scale by
ordinary cities of comparable size.
I'm line with this view of the status
Of the District, it is contended that
the Federal Government should Q
pay for all outlays made by the Dis
trict by reason of the latter's position
as the seat of the National Govern
ment; and Cd contribute a further
amount equal to that which would be
paid on the basis of the property tax
rate If the Federal Governments
properties were not exempted from
taxation.
Federal Phase Considered.
20. Directly in conflict with this
VII Of tho CT nf tho etytn 1f
Columbia, and, therefore, Of the prop
er measure Of its reasonable tax bur-
den, is the view that the District of
Columbia is an area ceded to the
Federal Government for a national
capital. Under this view, most of the
contentious noted in the paragraphs
Immediately foregoing are robbed Of
considerable weight. The problem
then becomes, not one of the abstract
moral and legal rights Of the District
Of Columbia against the Federal Gov
ernment, but one solely Of determin-
ing continuing basis for the equi-
table treatment of the residents OF
the District Of Columbia by Congress.
In view of the services received by
their residents, and in the light of
the costs of such services in other
comparable cities, how much of the
total expenses of the District should
equitably be borne by its residents
and how much may properly be con-
tributed by the Federal Government?
In practice, the Congress has ap-
parently adopted the latter of these
alternative viewpoints. But the great
variations In the amounts and relative
proportions of the Federal contribu-
tions, and. more particularly, their
declining trends in recent years, have
constituted an unceasing source of
controversy. Such controversy could
be minimized If Federal contributions
to the revenues of the District gov
eminent were regularly determined on
the basis of announced principles.
Satisfactory criteria for the appor-
tionment Of the costs of the District
government between District taxpay-
ers and the Federal Government could
be established, 1t is believed, by a
careful investigation into all the rele-
want facts
Recommendations.
"In order % to supplement the
foregoing analysis Of the comparative
tax rates and costs of government by
reference to the quantity and quality
Of services rendered; and CD to pro-
vide the data needed for the choice
of continuing criteria for the determi-
nation of the proportions and amounts
of revenues that may be justly raised