Evening star., 1937-06-08
The District Bill.

The District Bill.
There was less disagreement between
the House and Senate Committees this
year over the District bill than there
mas been for many years in the past,
and the bill reported yesterday from
the Senate Appropriations Committee
contained few changes of Importance.
most OF these being confined to the
elimination Of legislative riders affect
ing reorganization of the local govern
ment or arbitrarily prohibiting the use
OF funds for stated purposes The Sen
ate committee has been wise in elm
mating these riders, for such matters
should be treated by the regular processes
: OF legislation, and not dealt with in
appropriation bills
one OF the important changes pro-
posed in the House version of the bill
and still left undecided, however, is the
transfer Of public hospital administra
, ton from the Board of Public Welfare
to the Health Department. When the
bill Is taken up by the Senate this
transfer will be proposed as committee
amendment While there is doubtless
much to be said for the transfer, there
are sound arguments against it. Ger
tainly matter of this Importance should
be left to the proper legislative COM
mittees OF House and Senate and not be
disposed of in the hurried consideration
OF an appropriation bill.
The manner of spending the approx
mately $46,000,000 appropriated in this
years supply bill becomes of secondary
Importance by reason of the bills effect
on the local tax burden AS it passed
the House the bill would have required
roughly s6,ooo,OOO in new local taxes
AS 1t is reported to the Senate, the tax
increase necessary to avoid a deficit
with the Federal Government conflning
Its contribution to an inadequate $5,oo0,-
ooo-becomes nearer $7,5oo,ooo
Every penny added to the bill by the
Senate committee, in other words, has
meant 4 like increase OF the local tax
burden.
Coincidentally with the report of the
appropriation bill to the Senate yes
terday Chairman Kennedy of the
House District Committees special sub
committee on local taxation introduced
the omnibus measure designed to in
crease local taxes. And because the tax
program has been estimated to raise
only $4,000, 900, as against an estimated
deficit OF $7,5oo,O00, there is danger that
even the burdensome tax program pro-
posed by Mr.. Kennedy's subcommittee
will be made even heavier
That danger now is chiefly due to
confused and uncertain estimates regard
ing the revenue-raising powers OF the
new tax bills plus the proposed segre-
cation Of weight-tax revenues in the
Highway Department, where there is no
deficit. The District is already threat
ened with bIstering increase in local
taxes that will make it one of the most
heavily taxed cities in the United States
and every precaution should be taken to
conf1ne the increased taxes to the min
imum revenue needs. The short time
remaining before the beginning Of the
new fiscal year is no justification for
any hurried, slap-dash imposition of
new burdens, without the careful con-
ssderation 50 important now. Part Of
this careful consideration should lie
In review of the basis for the estimates
Of new revenues to be produced from
the new taxes.
In this connection, the elimination
from the appropriation bill of provision
enabling the District to obtain advances
from the Treasury to tide it over until
the time when its new taxes will produce
revenue was apparently done under a
misconception Of the situation. Even if
the new taxes were enacted today, the
District would still need permission to
obtain advances from the Treasury until
the complicated revenue laws can be put
into action and the money obtained. In
declining to grant this necessary per-
mission Congress is not holding a club
over the people Of the District to assure
, the imposition OF new taxes, but is merely
complicating It's own exclusive RESPONSE
bility of properly governing and ap-
propriating for the National Capital
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ILL