Evening star., 1939-06-18
Civic Problems, Civic Bodies
Revenue Bill No Fiscal Solution;
Cleanup of Washington

lump sum payment by the Federal
Government to not to exceed
$5,OO0,000 is regarded as inequit-
able and a complete lodging of
the real issue between the Federal
Government and the voteless and
unrepresented people of the Dis
trlct of Columbia. The inclusion
OF provision establishing def
mite rule to govern the fixing of
the share Uncle Sam is to pay
toward the expenses of his Capt.
tai City is deemed highly proper.
The House method is considered
as both unfair and unsatisfactory.
The graduated income tax as
carried by the bill appears to be
unsatisfactory even to its authors,
who had it included through
amendment from the floor of the
House. They are hoping that the
Senate will make a real job of
their bungle Severe criticism is
heard Of the action Of the House
in exempting members of Con-
gress and their employees from
payment of the income tax. This
attitude is strong additional
reason for greater Federal lib
erality.
The Senate District Committee
and the Senate itself are expected
to work out some sort of a solu-
ton of the problem handed them
by the revenue originating
branch OF the National Legisla-
ture. Senator John H. Overton,
Democrat, Of Louisiana, is to play
an important role in the handling
of this matter. AS a member of
both the District Committee and
OF the Appropriations District
Subcommittee, of which he is
the chairman, he is familiar with
the District need for revenue and
the logical reasons for the pay
ment by the United States of a
fair share.
The Senator has already made
first move toward the correc-
ton Of the illogical limitation on
the lump sum. On Thursday he
offered an amendment to the
revenue bill in the Senate which
would fix the Federal payment at
2l per cent Of the general fund
carried by the annual appropria-
ton bill. The pending District
appropriation bill, now in con-
ference, carries lump sum of
$7,750,000, against the $4,000, 900
as passed by the House. Senator
Overtons 81 per cent represents
the percentage of 0he area of the
land owned by the United States
in the District Of Columbia and
used for general Government
purposes. Applied to the pending
appropriation bill, it would pro-
vide Federal payment of ap-
proximately $8,60O,O 900.
The inclusion by the House of
the limitation on the Federal
payment has opened the way for
the Overton proposal. 1t is Sen
ator Overton's idea that the set
tlement of the fiscal relations
should be at the very beginning
OF the act. The civic groups who
have for years urged the adop-
ton Of businesslike plan for
fiscal equity have contended that
it is absolutely essential in writ
ing the budget and in framing
OF revenue legislation that there
be first disclosed what share is to
be borne by the powerful and
controlling partner.
The Organic Act of 1878, in it's
fiscal provisions, began with the
fixing of the Federal share at so
per cent of the amount approved
to be appropriated, and provided
that the other so per cent was to
be raised by local taxation.
AS to the fate of the revenue
measure, time alone will tell.
The Commissioners Advisory
Committee on Taxation has
taken hold of the situation, after
conference with District officials,
and have conferred with men,
bers Of the Senate District Com
mittee. These advisers spent
considerable time with the tax
experts in working out what was
expected to be a model tax law
which would broaden the tax
base and be more equitable. The
result represented in the pend
ing bill is considered as falling
far short of expectations.