Evening star., 1937-04-12
Rate by Mail-Payable in Advance.
All Other States and Cana da.
Member of the Associated Press.
Your Taxes.

1t seems to be generally agreed that
the imposition of new taxes here will be
confined to budget needs and that from
the list of new revenue-raiSing measures
presented to the House only those will be
selected which furnish the money neces-
sary to balance the local budget. The
process of selection, then, becomes i'm
portant and must be based on careful
study not only of the provisions of the
bills, their rates and their administra-
ton, but of the taxation principles in
volved.
Nobody wants to pay new taxes and
the Federation of Citizens Associations
has expressed local sentiment in taking
the stand that the S5,0O00O0 lump-sum
payment does not represent the National
obligation. If this payment were in
creased in some proportion to the pro-
posed increases in the local taxation, the
prospect of higher local taxes would be
more acceptable. But as some increase
in local taxes seems inevitable now, little
is to be gained by blanket opposition and
much may be gained by the correction
of inequitieS which study of the local
bills reveals and in the avoidance of
harmful or unwise principles of taxation.
1t is in this spirit that The Star today
begins publication, elsewhere in its COL
umns, of a series Of articles examining in
detail the bills proposed and some of
the taxing principles involved,
AS far as principles are concerned,
action of the Federation of Citizens Asso-
Citations at its meeting Saturday evening
is indicative of a sound point of view
which will doubtless receive acknowledge
ment in consideration Of at least some
of the tax measures. The federation did
not oppose an increase in the gasoline
tax, but did express its opposition to an
increase In the gasoline tax which is
coupled with diversion Of gas tax reve-
nues to uses other than those associated
with the responsibilities of motorists.
Substantially the same position was
taken, in signed article In yesterdays
Star by Washington I. Cleveland, man
ager Of the local motor club OF the Amer
lean Automobile Association. Both Mr..
Cleveland and the federation point to the
Inconsistency in diverting gasoline taxes
here while Congress penalties States
that practice diversion by withholding
from them a percentage of highway
grants otherwise available.
q, In much the same spirit the federation
opposed the provisions in the pending
District bill for boosting water rates in
order to create a surplus, usable at some
later date for water system improve
ments. Although other considerations are
involved, an increase in water rates-or,
rather, resumption of the rates of a
few years ago-night be justified to
finance Improvements actually author
tzed by Congress. But until the i'm
proVements are actually authorized, the
accumulation of such a surplus above
authorized expenditures represents a
form of excessive taxation and should
be avoided. Even now Congress is not
appropriating all water revenues or all
gasoline revenues available from current
rates of taxation. Preparation and
authorization of improvement programs
should precede, not follow the increases
/ Of taxation, and the increases should be
confined to the needs actually existing
. and appropriated for-not the needs that
are contemplated at some indefinite time
In the future.