Evening star., 1939-07-01
Partners in Tuxpuyine

still pays one-half of the cost of the
maintenance and upbuilding of the
National Capital. 1t is still more
surprising to find a few who imagine
in exact reversal of the truth that
the Washingtonian pays no taxes,
but votes, at least for President.
The true fiscal relations between
the United States and its National
Capital community are succinctly
described in the Congressional Di-
rectory in chapter entitled, THE
District of Columbia and
Form of Government From it the
following is quoted:
This act June II, 1879 also pro-
vided that the cost of operation, de-
velopment and maintenance of the
District of Columbia should be borne
Jointly by the United States and the
District of Columbia upon a $3.50
basis This ratio was in 1922 changed
to payment of 60 per cent from the
revenues of the District of Columbia
and 40 per cent by the United States.
For several years this legal ratio has
been superseded in practice by an
annual lump sum appropriation of
from $9,000,000 to $9500,000 and for
the fiscal year 1887 $5,000,OOO by the
United States, the remainder of the
local expenses being borne by the
revenues of the District of Columbia
derived from taxation of private
property and privileges" (The 6O-4O
provision was repealed in 1888 by the
Seventy-ffth Congress-
The annual lump sum appropria-
tions from the Federal Treasury for
municipal expenses during the four
teen years during which Congress
failed to comply with it's own law,
represented an average of only PAT
per cent, although the statute re-
quired 40 per cent. The rapid in
crease in the Districts budget in re-
cent years, accompanied by the sub
stantial decrease in the amount paid
by the United States has so reduced
the national payments percentage
relation to the total budget that for
the fiscal year ending June 80, 1898,
it represented only about IL per cent.
This decrease has resulted in exces-
sive local taxation and in the &C
emulation unmet of many urgent
Capital needs.
The national payment of between
IL and II per cent of the total Dis
trict appropriation is distinctly and
grossly inadequate. 1t disregards en-
tirely the real obligation of the Fed
eral Government, which may be sum-
married as follows:
/. The obligation of the United
States as untaxed property owner, ex-
empting from taxation a large frac-
ton of the Districts realty, creating
an equitable obligation to pay an
nually in lieu of taxes an amount
authoritatively estimated as rang
ing from eight million to over eleven
million dollars. BY condemnation of
privately owned property for public
use the United States has in recent
years made large additions to the tax
exempt areas and reduced CORE
spondingly the taxable realty. At
the same time the cost of maintain
Ing and developing the National Cap
ital has largely increased When
steadily decreasing fraction of city's
area must bear the burden of
steadily increasing tax, largely to
meet the fast mounting expenses of
a great and growing modern Capital,
an excessive tax burden is inevitable.
q Obligation based on absolute
control of the city and upon the cir
cumstances surrounding its creation.
Obligation follows power.
3. Obligation based on national
pride in Nations City, to prevent it
from relapsing into its old-time con-
dition as national shame through
national neglect.
4. Obligation based upon payments
made from local taxes solely because
Washington is the Capital, in excess
Of what would be paid if Washington
were the ordinary commercial self
sustaining community. Also based
upon local payments which are ma
tional or semi-national and impose
an obligation upon the Nation to
pay all or one-half of such expendi-
lures.
S. Obligation based upon heavy
national Gnternal revenue) taxes
paid by the people of the Capital
compared with corresponding pay
ments by the States.
6. Equitable heavy obligation to
pay for the Capitals upbuilding in
lieu of hundreds of millions of grants,
bounties and subsidies paid by the
Nation to the States from national
tax revenues to which the District
contributes more than any one of
half Of the States, in a distribution
In which the Capital is not treated
as State and when included at all
is included only by special exception.