Evening star., 1937-07-21
Incredible NIisgoyernrnent.

Incredible disagreement.
Representative Palmisanos outburst
against the Commissioners for not rails
ing the real estate tax rate is perfectly
In keeping with the incredible ignorance
and prejudice displayed in the House
toward the Districts present fiscal
emergency.
The immediate concern in this emer-
gency is to obtain the necessary funds
to meet the Districts obligations pend
ing receipt of the Districts own tax
revenues. AS Auditor Donovan warned
months ago, this need for funds is sep
arate and distinct from the imposition
of new taxes. The need for funds would
have been substantially the same had
Congress enacted a tax bill month ago,
for it takes time to collect the taxes after
they are levied, and such time is not now
available.
The grotesque proposal that the
Treasury advance funds to the District
at three per cent interest was offered
in the House in the hope that the un-
fair interest provision would appeal to
the members who like nothing better
than to take a slap at the unrepresented
local taxpayer.
But discussion Of the proposal showed
all too plainly that the majority of
those who talked about it lacked even
q faint idea of what it was all about
The proposition Of making the people of
the District pay premium Of three per
cent to obtain the cash which they would
have to pay later in higher taxes was
construed by some members as consti-
tuting favor Of some kind to the people
OF the District and they therefore killed It,
The three per cent interest provision
should have been killed. But the denial
OF the Districts right to obtain Treas
ury advances pending collection of its
own revenues may mean that District
employees will suffer loss of salary and
go unpaid until Congress makes up its
mind about What to do. Weeks ago
Representative Kennedy warned the
House that this might happen, and his
allusion to lay-offs Of fremen and police
men evoked response from the House
described in the Congressional Record
as laughter"
The other part of the fiscal emergency
relates to the tax bill still pending in
the Senate. 1t is tax bill highly un-
satisfactory and inequitable in several
of its provisions and complicated by the
Tydings amendment, relating to con-
troversial subject Of national Importance
which presumably will require extensive
Senate debate. But the fundamental
purpose of the tax bill-aside from rails
ing money to meet the District deficit
has been to prevent the imposition Of
heavy, additional burdens on overtaXed
real estate.
If the Senate fails to dispose of the
tax bill within the next few days, send
ing it to conference, where some of its
most Objectionable features may be elm
mated, the Commissioners may be forced
against their will, and against the will
of the community and Of the sponsors
Of the tax bill, to increase the real estate
rate to an excessive and highly unjust
figure, with consequent evil effects on
the local community.
But, regardless of the tax bills fate,
the District must have cash to operate.
Failure to supply this cash may cause
needless suffering and great inconven-
ience to many faithful municipal en-
ployes as well as to the residents of
this community. More important to the
members of Congress, however, is that
such a situation will hold them up to
the deserved ridicule of the country for
their deplorable failure to exercise their
exclusive responsibility under the Con-
stitution for government of the District
OF Columbia.