Evening star., 1945-12-19


1888 IT'S 900
1934-36 5,700, 1000
1878 5000, 900
1940-45 5000 900
The 40-60 basis of appropriating
was repealed by the provisions of
the District of Columbia Revenue
Act, approved May Is, 1888.
Prior Investigations.
An examination of previous re-
ports shows that the findings of
the various committees centered
principally on two points, namely:
Cd That a just rate of taxation
be paid by the residents of the
District of Columbia.
~ That the Congress should pur-
sue a definite policy of regular and
liberal appropriations for the devel-
opment and upkeep of the District
of Columbia commensurate with its
status as the National Capital.
1t is with these two points, there
fore, that this report will be con-
cerned
Establishment of National Capital.
Authorization for the establish
ment of the seat of government out
side any State was written into
clause II. section 8, article / of the
Constitution. The seat of govern
ment was actually fixed by law of
July l6. 1890 Thus was the site of
tho Die%rio+ ~ Col1r,h;o cot ,e;da
for the purposes of the Federal Gov
ernment. with exclusive legislative
authority vested in the Congress.
1t is only natural to assume that
when the Congress determined that
the National Capital was to be To-
Gated outside any State and that
the legislative authority would be
retained by the Congress. that it
was also the intention of the Con-
gress that the Capital City would be
developed along lines commensurate
with its status.
Taxation.
The present Organic Act of the
District was enacted in 1878. 1t was
provided therein that the District
Commissioners would submit annu-
ally to Congress. through the Secre-
tary of the Treasury, estimates Of
their needs for the current and other
expenses of the District for the sue
ceeding fiscal year, and then further
provided
And to the extent to which Con-
gress shall approve of said esti-
mates, Congress shall appropriate
the amount of so per centum there
of; and the remaining so per centum
of such approved estimates shall be
levied and assessed upon the taxable
property and privileges in said Dis
trict other than the property of the
United States and of the District of
Columbia.
While the Congress from the be-
ginning had made lump-sum pay
ments to help defray the expenses OF
the Capital City. by the enactment
of this law it definitely recognized
the obligation of the Federal Gov
ernment to provide for large share
of its expenses and at the same
time provided the method by which
the tax rate to be paid by residents
of the District would be established;
that is, by providing that
The remaining so per centum OF
such approved estimates shall be
levied and assessed upon the tax
able property and privileges in said
District other than the property OF
the United States and of the Dis
trict of Columbia.
The procedure for levying taxes
was restated in the act of June
20, 1922, and therein the Con-
gress again stipulated that the
taxes to be levied by the Commis-
sioners were to meet the Districts
share of expenses of the local gov
ernment and committed the Con-
gress to meet its share.
The residents of the District of
Columbia are and always have been
ready and willing to pay their share
in the upkeep and operation of the
Capital City. However, it must be
remembered that the remedy for
the criticisms of the tax structure
of the District in prior investiga-
tions was not in the residents but
in the Congress, and it was only in
recent years that the Congress acted
to remove the bases Of these criti-
cisms.
The District of Columbia Revenue
Act of 1887, approved August II,
1887, as amended by the District
of Columbia Revenue Act of 1899,
approved July 26, 1899, provided the
principal changes in the tax struc-
ture. BY these acts there were es-
tablished individual income, corpo-
ration income, inheritance and es-
tate taxes, thus plugging loopholes