Evening star., 1938-12-25
Civic Problems, Civic Bodies
Tax News in Contrast With Holiday;
Pedestrian Law Hearing Thursday

sovereignty and not a case of
the District being decided" to
the United States, as often stated
erroneously The laws of Mary
land continued to operate in the
Federal District until replaced by
legislation by Congress.
It is an interesting fact that
Maryland, in ceding this terri
tory, failed to include in the act
of cession the same safeguards
for the inhabitants of the ceded
area which were included in
treaties between foreign powers
and the United States when ced-
ing territory to the United States.
The Car of Russia, Napoleon
Bonaparte and the King of Spain
all took particular care that their
nationals. living within the ceded
territory. should be privileged to
enjoy full participation as Amer
lean citizens if they elected to
remain. Present-day students of
the Districts peculiar and tragic
political plight have reached the
conclusion that the Marylanders
of 1888 were over-conf1dent in a
belief that as a matter of course
the political rights of the inhab-
itants Of the Federal District
would be preserved.
Congressional Joint Committee
To Write District Tax Law.
The four point tax revision
plan approved by majority of
the Commissioners Tax Advisory
Committee is now reported to be
in the lap of the tax experts of
the Congressional Joint Commit
tee on Internal Revenue Taxa
ton and will be considered by
them in framing their report to
Congress The reports appear
ing in the press telling of the
final action of the Advisory Com
mittee fail to. indicate whether
there was included in the men,
orandum the basic idea which
had the unanimous approval of
that committee. That was lay
ing down as a fundamental ap-
proach to the local taxation
problem the principle that an
equitable share be paid annually
by the Federal Government.
Many people throughout the
Nation labor under the impress
sion that the District is a tax
free paradise and others continue
to believe that the United States
pays 40 or so per cent of the cost
of running the Nations Capital.
Few know that the District is a
substantial taxpayer of both To-
cal and national taxes.
There is no reason for any one
studying the question of taxation
in the District of Columbia being
permitted to lose sight of the fact
that the District pays in naional
taxes an amount in excess of that
paid by each one of half the
States and more than the ag-
gregate payment of an entire
group OF States. Nor should an
other fact be overlooked-that
the local taxpayers are now pay
ing more than 80 per cent of the
annual cost of running the seat
of the Government of the United
States.
The Organic Act OF 1878 placed
the support of the Capital city
squarely on the United States
as primary obligation to pay so
per cent out of the Treasury and
then provided that the remainder
should be raised through local
taxation. When this percentage
was changed to the 60-40 ratio
a recognition Of this principle
was continued. Under this re-
vision the District was required
to pay go and the Federal Gov
ernment 40 per cent.
The 60-40 law was repealed by
the last session of the Seventy
fifth Congress, though it had long
been superseded in appropriation
practice by arbitrary lump sums
in diminishing amounts. If, as
belated Christmas present, Con-
gress could be induced to make
good the difference between the
lump-sum payments and the
amounts which would have been
available on the 40 per cent basis
many Of the capital and other ac-
cumtlated needs could be taken
care Of handsomely.
The civic groups are all Of one
mind that there can be no fair
approach to either taxation or
budget making for the District
unless one begins with q definite
fixed proportionate payment by
the United states toward the run.
ming, development and beauti,.
oatioa Of the National Capital