Evening star., 1947-01-12
Too Much From Too Few

Fopulatlon growth invariably in
creaseS the cost Of municipal gov
ernment. There is no exception to
the rule in Washington. The ex-
ception in Washington is that the
growth in population does not mean
any proportional growth in the
number of local taxpayers. It is i'm
portant to keep that in mind in con-
nection with the record-smashing
District budget just sent to Congress,
along with recommended record
smashing increase in local taxes.
First, the budget. The Commits
sioners are asking for about ST.
100000 more than Congress appro-
priated last year. The amount of
the increase suggests much more
money to spend on better services
and facilities for the people who
live here. But that is not correct.
A substantial part of the SIT 100000
(more than half is to meet the cost
of higher pay scales, more liberal
retirement laws, more employees to
take up the slack in shorter work.
ing hours, increased cost of the
insane at st. Elizabeth 's-expenses
which reflect no increased services
to the taxpayers and which do re-
fleet congressional policies over
which the local government has no
control whatsoever. The budget
recommends about $18,000,000 for
capital Improvements (new con-
struction). Yet a pitifully small
amount of that total will be spent
for such things as schools, play
grounds, libraries, better health
facilities and the improvements
which most directly affect the in
dividual citizen. The greater part
of it is to pay for enlarged water,
sewer and highway systems, made
necessary by population growth.
Real estate carries the heaviest
share of local taxes. Yet half the
real estate in Washington is tax
exempt. The personal income tax
has become good revenue-raiser.
Yet there are only about $4,000
local income taxpayers, compared
with an estimated 100000 local
incomes which would be locally tax
able except for the unique exemption
ordered by politically minded Con-
gress. Local corporations pay
sizable tax. Yet unincorporated local
business, the owners of which claim
domicile elsewhere, pays no income
tax. Maintenance and expansion of
the street system is financed by the
gasoline and motor vehicles taxes.
Yet the Federal Government, prin-
cipal user of the street system, pays
none of these taxes. Great enlarge
ment of the water system is required
by the expansion of the population.
Expenses for the system, ~hoWever,
are charged to some-not au-the
water users.
In these circumstances the Com
missioners proposed legislation to
measure what the National Govern
ment should pay toward expenses of
the American Capital. The measure
merit would be based on formula
taking into consideration the huge
tax exemptions granted because this
Is the American Capital and would
relate in a fixed proportion the Fed
eral share of expenses to the local
share. That is one fair way to make
up for the exemptions which Con-
gress has approved as policy. The
Commissioners also proposed a local
tax program. The Federal Budget
Bureau, which from the beginning
has been more of hindrance than a
help in obtaining good local govern
ment, eliminated the formula on a
theory which is as dishonest as it Is
unwise, and left the Commissioners
holding the bag with only that part
of the program which soaks the local
taxpayer with new and higher taxes
to overcome the entire $17,000,000
budget deficit.
The tax program would lift ex-
emption from local income taxes for
those who earn their living here but
are "domiciled" som where else, and
it would require the same taxes
from all unincorporated business
now required of local corporations.
Two good points. 1t would levy a
sales tax in an attempt to collect
something from those who now en-
Joy all municipal benefits but pay
no direct taxes. 1t contains one
atrocious proposal in the form of
consumer tax on telephone, electric
light and gas bills. The higher liquor
tax is probably justified. The ciga-
rette and amusement taxes are addi-
tional indications of how near we
are to the bottom of the barrel in.
the field of nuisance taxes. There is,
in addition, the higher gasoline tax.
But if all these taxes are ap-
proved they will not solve the prob
lem in Washington. It cannot be
solved by local tax increases alone.
This new budget, for example, does
not include any significant part of
Engineer Commissioner Young's
$100,000,000 program of needed capt.
tai outlays. Unless this new Con-