Evening star., 1939-06-18
Too Hiqh Now

loo High Now
The charge so often made in Con-
gress that the District Of Columbia
Is undertaxed not only encourages
reckless imposition of new taxes but
Is utilized as an argument against a
wholly justified increase in the Fed
eral payment.
The most recent comparison Of city
tax burdens was made for the Senate
District Committee this year by the
Census Bureau at the request Of
Senator Overton. The results of the
comparison fatty contradict the
contention that Washington enjoys
any favored position in relation to
Its local tax burden and shows that
the tax burden here, compared with
eleven cities which most closely ap-
proximate it in population, is rela-
lively high.
It is important for Washington
that members Of Congress give the
results of this comparison, which is
reproduced elsewhere in today's Star,
the attention that will correct the
apparently prevailing impression
that Washington's low tax rate of
SITS constitutes fair measurement
Of tax burden.
As set forth in today's Star article
In the words of Mr. C. E. Rightor,
Chief StatiStician, Division of States
and Cities of the Census Bureau:
"The tax rate, while appearing super
facially to be simple and direct
measure (of the tax burden) is really
. wholly inadequate index
The tax rate is only the resultant
Of dividing the tax levy by the
assessment; if, therefore, the assess
ment is made on some basis other
than full value, the rate is affected
thereby. In practice, the ratio of
assessed valuation to the true or full
value Of the property varies greatly
from city to city AS 1t is
impossible to obtain accurate and
reliable estimates Of this ratio in the
cities, even for realty, it means that
the tax rate is an unreliable index
Of the property tax burden, and even
more so for the total tax burden"
The Census Bureau comparison
was made Of per capita revenues
from all sources, exclusive of grants
in-aid, donations, pension assess
ments and receipts Of public service
enterprises-a method chosen as
'the most significant gage of the
tax burden of a city"
What are the results? OF the
eleven cities most closely approx
mating 1t in size, Washington's tax
burden, including in the comparison
the portion Of tax revenues which go
to meet interest and sinking fund
payments on debt in other cities, ex-
ceeds six of the eleven cities with
which it is compared. Certainly
Washington is not undertaxed when
Its debt burden, including no bonded
Indebtedness payments, exceeds that
OF six OF the eleven cities including
their large payments for bonded
Indebtedness.
The debt factor should be elimi-
mated in all such comparisons, how
ever, as the object of the comparison
Is to show the tax burden for current
maintenance and normal improve
ments, neither of which is repre-
sented by bonded debt When the
debt factor is eliminated, as it should
be, Washington's tax burden exceeds
seven Of the cities with which it is
compared and approximates that of
two Of the four which are higher.
This comparison shows that WASH
ington, with it's absence of industrial
development or bonded debt; with a
population Of moderate salary work
ers, thousands of whom pay no direct
taxes because of residence elsewhere;
with q budget that undergoes the
most careful scrutiny by the Budget
Bureau and Congress to eliminate
waste and with municipal govern
ment that is strictly supervised by
Federal accounting agencies, is not
undertaxed but is bearing a rela-
lively high burden of taxation when
compared with other cities. Such
facts must be considered carefully
before excessive new taxes are added
or before the fatal step is taken of
freezing the Federal payment at a
wholly inadequate sum and thereby
paralyzing healthy maintenance and
development Of the Capital.
Commencement
What is to happen to the young