Evening star., 1941-04-25
A Favorable Report

Inc dCJlOn OF Jne House DlSJTlCL
Committee in favorably reporting
! the Senate-approved Overton plan,
with an amendment suggested by
the President, presents to the House
for its consideration but one ques-
tion-whether the Federal Govern
ment is to share equitably in the
expenses of the National Capital.
There is no dispute as to the obli-
cation of the Federal Government to
participate in the cost of maintain
ing and expanding the Capital City.
Existence of that obligation has been
uniformly recognized since 1870, and
the sole issue now is how much the
Federal share should be and how it
should be measured.
The Overton plan, providing that
the Federal share shall be based on
the ratio of tax-exempt Federal
acreage to the total land area of the
District after specified deductions,
offers simple, certain and equitable
means of making this determination.
1t is estimated that adoption of the
Overton formula would increase the
present annual Federal payment of
S6,00000 to approximately S9,00O,-
900 in the fiscal year beginning July
l, and the amendment added at
the Presidents suggestion StipulateS
thot the or1Y,i1o1
ated for capital Improvements of
all kinds would at least have to equal
the Federal payment.
There can be no rational basis
for opposing the increase which the
Overton formula provides. In the
admirable statement submitted to
the House committee yesterday by
Senator Overton it was shown that
the District has been tagging far
behind in capital improvements, and
that this Is a condition which will
be aggravated by the influx of new
residents brought here by the ma
tional defense program.
Inability of the District to make
necessary capital improvements,
however, results from a lack of
revenue which is not attributable
to any failure on the part of local
taxpayers to pay their full share of
the cost of maintaining the Capital.
Senator Overton, seeking to de-
termine the adequacy of the local
tax burden, recently asked the
! Census Bureau for specific informa-
| ton on Washington's tax burden in
comparison with cities of approx
mately the same population. The
factual findings clearly demonstrated
that the local taxpayer is fully meet
tional Government, having the re-
sponsibility and holding all the
power, has not lived up to its own
self-impoSed obligation. In this con-
nection, Senator Overton also sub
mitted to the committee a detailed
report designed to refute claims that
real estate in the District is not
bearing a fair share of the revenue
burden. His figures, going back to
1880, revealed that taxes on prop
erty represent higher percentage
of total taxes levied in the District
than in any State, and, in addition,
that the assessed value of real estate
here for tax purposes on the average
invariably has been higher than it's
sale price.
There is one other fact brought
out at the committees hearing
which should be kept in mind, and
that is, according to Tax Assessor
Dent, that the Federal payment, if
the Government should be required
to pay taxes on present tax-exempt
Federal holdings, would amount to
about $11 100000.
If the House as whole, in taking
up the favorable report from its
District Committee, will put aside
all prejudices and decide the issue
on the incontestable facts which
have been developed, there should be
no hesitancy in approving the
| formula devised by Senator Overton