Evening star., 1939-01-08
Yardstiek 10 Fix U. 5.
Fund for District
Is Problem
Senator Overton Asks
Tox-Exempt Property
Be Used for Scale
This Is the last in a series OF
. QrticleS.)
BY J. A. O'LEARY.

.. 0ttCtcS./
BY ]. A. O'LEARY.
The complete control Congress ex-
ercises over the National Capital in
levying taxes, passing on appro-
priations and determining the scale
on which it shall be developed, has
been emphasized by organized
Washington in past studies of fiscal
relations as one of the primary rea-
sons why the Federal Government
should bear an equitable share of
the expenses Of the city.
In taking stand recently in IA
vor Of abandoning the lump-sum
policy Of Federal payment and a
return to some definite formula,
Senator Overton Of Louisiana, new
chairman Of the Senate Subcom-
mittee on District Appropriations
has suggested that the acreage of
tax-exempt property used by the
Federal Government be considered
as yardstick.
The large amount Of tax-exempt
Government property here usually
is the first basis of Federal obliga-
ton to share In maintaining the
city that suggests itself to those
who approach study of the sub
ject.
Not Primary Reason.
In a comprehensive brief on the
subject prepared about two years
ago by the Citizens Joint Com
mittee on Fiscal Relations Between
the United States and the District
OF Columbia it was emphasized that,
while tax-exempt property is con-
tinuous and growing source of obli-
cation, it is not the sole or pri-
mary reason for an equitable Fed
eral participation. 1t analyzed In
detail other factors that combine
to form the basis Of the Federal
obligation, including the following:
The absolute control possessed by
Congress; unusual expenditures
from local taxes in excess of what
would be required If Washington
were the ordinary commercial, self
sustaining city: the obligation based
on heavy national internal revenue
taxes paid by Washingtonians, as
compared with corresponding pay
ments by the States.
Discussing the obligation based on
absolute control, the brief stated,
In part:
THE true basis of the Nations
obligation of proportionate contri-
buttons to the maintenance and de-
velopment of the Capital is not
solely or primarily untaxed owner
ship of District real estate (now
valued at 1862 1896, ,513 though a
substantial and continuous obliga-
ton does arise in connection with
such ownership"
Fixed Proportion of Cost.
After recalling that the organic
act took away territorial representa-
ton in Congress, territorial self
government and self-taxation from
the District, and pledged the Nation
to meet fixed proportion Of the
cost Of developing the city on a
scale worthy of the Capital, the brief
continued:
THE assumption and exercise Of
absolute and exclusive legislative
power were coupled with recognition
OF a pre-existing and continued
financial obligation. > ="
In discussing extraordinary ex-
penditures from local taxes because
this is the Capital city, the report
declared there are additional obliga-
tions based on payments from local
revenue toward the support of
projects or institutions which are
national or semi-national.
That Washington continues to be
a heavy contributor to national in
ternal revenue tax collections again
was shown two days ago by the an
nual report of the commissioner of
internal revenue. 1t disclosed that,
with only .48 per cent of the popula-
tion of the United States, Washing
ton paid SO per cent of the total
internal revenue collections for the
fiscal year 1898.
The District continued to pay
more in national taxes than each
OF q States, Alaska, the Philippine
Islands and Puerto Rico.
80 Per Cent Of Appropriations.
Under the existing IS 600, 900 lump
sum policy of Federal participation
in upkeep Of Washington, the local
community is paying nearly 80 per
cent Of total District appropriations
IN local revenues, and. as a heavy
national taxpayer, is also contribut-
ing above the average toward the
Federal lump sum.
The brief prepared by the Citizens
Joint Committee late in 1896 also
described the growth Of the program
OF Federal aid to the States for
various purposes, from which the
District for many years was exclud-
ed. Recently the District was in
cluded In the Federal-aid highway
program, of which the States have
had the benefit since 1916. Recog-
nizing the depression as Nation
wide, Congress also has permitted
the District to share in emergency
relief loans and grants during the
last few years, but not always on
equal terms with the States. The
District, for example, did not share
in the first relief allotments made
through the R. F. c.
Since his designation recently as
new chairman of the District Ap-
preparations Subcommittee, Sena-
tor Overton has been studying the
fiscal relations problem. He has
indicated q desire to see some
equitable, permanent formula
worked out, but has not yet drafted
specific plan.
Anonfnur (kvnc1a.e