Evening star., 1947-02-21
Bates Studies
Tax Comparison
Data for D. T..
Seeks Clue to Fiscal
Solution in Figures
OF Is Other Cities
By John w. Thompson. Ir.

Dy Jonn w. thompson, Jr.
The District, per capita, paid more
income tax, had higher assessed
value OF property and spent more
on public building than Is other
cities Of about the same population
in the fiscal year 1941. X
This was among the findings Of
the Census Bureau disclosed last
night in a comparative tax study
made at request of Representative
Bates, Republican, of Massachusetts.
Mr.. Bates is chairman OF the Dis
trict Committees Fiscal Affairs Sub
committee which will handle the
city's new tax bills when they final
ly are sent to the Capitol.
On the other hand, the Census
officials found the 13 other cities
averaged, per capita, more money
from all taxes, spent more overall
and paid more real estate tax than
this city.
To Ask Breakdown.
Mr.. Bates said he had spent hours
studying the report but, had not
yet made UP his mind on the local
fiscal problem. He said he planned
to ask the bureau for detailed
breakdown of expenditures of these
cities by major departments to see
If the District is 'topheavy" In any
of its activities.
Cities compared with the Dis
trict by the Census officials were
Baltimore, Boston, Buffalo, Cincin-
natl, Cleveland, Detroit, Los Angeles,
Milwaukee, Minneapolis, New Or
leans, Pittsburgh, st. Louis and San
Francisco. About half of these are
bigger and the rest smaller than
Washington, the bureau said, using
1910 population figures.
In addition, the comparison made
the point that this city pays its
bills out Of current tax income and
leftover balances, thus resulting
in minimum debt and interest pay
ments. The other cities, tended to
finance major construction pro-
grams through borrowing, which is
reflected in annual expenses in the
form of interest and retirement Of
bonds.
The bureau pointed up the diff
Guilty Of comparing the District with
any other city, because Washington
provides all public services within
its area for its population. The
others generally have obligations
and receive benefits from State and
county governments and special
units such as school or water dis
tricts.
For this reason. officials said, q
direct comparison of District
finances with those of the city cor
porations alone would throw little
light on the issues of relative econo-
[my or tax burden"
AS a result, the tables are set up
Eby adding 10 the figures of the
tcorporations "that share Of the cost
of overlying local governments and
Of the State which can reasonably be
imputed to the city"
e The comparison thus is between
the District and 10 other "city
areas"
The bureau fell back on 1910
population data in most cases be-
cause it felt reliable up-to-date pop
ulation figures were not available for
per capita comparisons.
To Seek Further Data.
In the case Of comparing income
from property taxes, the bureau
took the District returns as q base
and compared the amounts received
in other cities in terms of per-
centage of District returns This
procedure was followed, officials ex-
planned, because of the difficulty Of
comparing tax rates and assess
mentS.
kilograms were sent to State tax
commissions or similar bodies for
the cities studied, 1t was said, ask
ing what the relation of assessed
value was to true value. In many
cases, the answers disclaimed knowl-
edge or reported merely legal re-
quirementS.
Mr.. Bates said he was going to try
to obtain information on the real
relation of assessed to true value in
some of these other cities through
other members of Congress with
connections there.
The subcommittee chairman has
spent hours studying mass of ir1-
formation on city finances and COM
paratiye data obtained by letter
from many other cities.
The new tax bills for Washington
are still at the Budget Bureau.
They call for seven new or ln-
creased levies, including 2 per
cent sales tax, due to raise in all
some $17,750,000 for the city's gen.
eral fund. A 1-cent increase also
is proposed separately for the gaso-
line tax, which feeds the highway
fund, and some borrowing is asked
for the water fund. These are the
three funds into which all city in
come goes.