Evening star., 1939-06-21

ug " ttCtc " u SeIIcS " cuttU tuI
articles discussing the fiscal rela-
tions crisis no,O faced by Wash
ingtOn.
In addition to meeting 80 per cent
of the current expenses of the Ma
tional Capital from its local rev.
enues, Washington, through its ma
tional tax payments, is heavy con-
tributor toward the remaining 10
per cent, which Congress now makes
available as a $5,000,000 lump-sum
payment from the country as a
whole.
In a preceding article it was
shown by recent statistics that
Washington already has a relatively
high local tax burden even without
the new levies now being proposed
in Congress.
In the field of national taxation
the District of Columbia contributed
more to the Federal Treasury during
the fiscal year 1888 than each of q
of the States, Alaska, the Philippine
Islands and Puerto Rico, according
to the last annual report of Internal
Revenue Commissioner Helvering.
For the fiscal year 1888 Washing
tonians paid national taxes into the
Treasury to the amount of $35, $780,
942 20. In percentage, this meant
that with only O.48 per cent of the
national population, it produced 0.63
per cent of the total internal rev.
enue payments.
No Voice in Government.
And yet the notion prevails in
some minds that the Capital is sup
ported by the Nation with money
wrung from the meager earnings of
millions of Americans and flung as
beggars' aims to a mendicant people.
Others know some of the facts, but
: do not know all.
In developing the Nations City,
WashingtOnians are by far the
largest contributors. They are today
meeting nearly all Of the expenses
of Washington as local taxpayers
and are contributing more than
any one of half of the States as
national taxpayers toward the
$1,000 900 constituting the Federal
payment.
Nevertheless, they are the only
Americans who have no voice.
through elected representatives, in
levying either the local or the ma
tional taxes. or in the distribution
of the funds to which they are such
large contributors.
This concentration of all power
in the hands of Congress is one of
the foundation stones on which the
obligation of the National Govern
ment to share literally in the ex-
penses of the city has rested
throughout the history of the de-
velopment of the Capital.
Obligation Once Recognized.
Washington always has con-
tended that political power and
financial obligation are inseparably
coupled; that if the Nation con-
trolls. it should pay.
When Congress by the Organic
Act deprived Washington of terri
torial representation in Congress,
territorial self-government and local
taxing power, it recognized the ac-
companying financial obligation by
establishing the equitable $3.50 basis
of appropriation.
Under that wise principle, adhered
to for more than 40 years, the city
was developed along lines befitting
the Capital of rich and powerful
Nation. And even when the ratio
was changed by reducing the Fed
eral share to 40 per cent, the prin-
ciple of definite, proportionate pay
ment was preserved.
That principle protected the vote
less and powerless Washingtonian
from unjust tax burdens and unwise
expenditures. because the national
lawmakers knew that there was a
Federal obligation to provide def
mite part of each dollar appropri-
ated.
Lump Sum Shrinks.
The history of what has happened
during the past IS years of lump
sum departure from the fixed ratio
has proved the need for that safe
guard to avoid hardship on the i'm
potent local partner and has borne
out all the fears expressed in ad-
vance by Washingtonians.
The District Commissioners have
just presented to Congress a table
that tells the story in graphic form.
1t shows that when the lump sum
started at $9,0000OO in 1925, it was
applied to general fund appropria-
tions of $50, ,9O8, 900, making the Fed
eral share 291 per cent.
Today, with the general fund up
to s40,577 900, the lump sum has
dwindled to $5,00O.OO0, or a Fed
eral share of 1873 per cent.
Not Whole Story.
Nor does this table tell the whole
story of how the Federal Govern
ment has relieved itself of nearly
all of its financial obligation toward
the Capital, because the lump-sum
percentages are applied only to the
general fund. The District, in addi-
ton, is meeting the entire cost of
the highway and water services
directly out of motor vehicle taxes
and water rents. For the current