Evening star., 1949-04-10
A Fair and Simple PIon

A Fair ond Simple PIon
Senators McGrath and Kefauver, in The
Stars opinion, are wise in writing into the
home rule bill definite provision relating
to the Federal payment. The provision
itself seems fair, Is supported by ample
| precedent and has the advantages OF
| simplicity.
Their proposal Is to revive the principle
Of definite and fixed relationship between
the amounts contributed by the control
| ling National Government and the local
community for support Of the Capital City.
That was the plan followed for almost
half century until 1924, when 1t was
abandoned in practice Though not re-
pealed by statute until later years. in favor
of an annual lump sum. One of the highly
unsatisfactory features of the annual lump
sum has been that the amount is unrelated
| to anything. 1t Is unrelated to what the
| local taxpayers furnish and it Is unrelated
| to any attempted measurement In dollars
of the Federal obligation to Washington.
| 1t Is sum plucked out of thin air, changed
| at times as the result of whim or compro-
mise. And by any method of calculating,
| 1t Is insufficient.
The proposal written into the home rule
bill is that the Federal financial obligation
to its Capital City be set at 20 per cent Of
the local tax revenues. Regardless Of the
fate of the home rule bill, Senator McGrath
is said to favor this fiscal formula as
| independent legislation. It's advantages
are evident. 1t would increase the Federal
payment, as it should, when local tax
| revenues are increased. 1t would decrease
| only when the local tax load is decreased
It would symbolic the Joint, and fixed,
responsibility between the National Gov
ernment and local community in respect
to the Capital.
Under the lump sum practice the Fed
eral Governments proportionate share of
District expenses declined from 40 per-
cent In fiscal 1922 to 1881 percent in fiscal
49. While the Federal Governments pay
ment increased by only 81 900 in those
27 years (from about nine to eleven mil
lion) the Districts payment quadrupled
from % to over IS million-in general tax
revenue. Starting with 40 percent in 1922,
the total average Federal payment in sub
sequent years amounts to something more
than II percent. Senator McGrath's pro-
posed 20 percent annual payment, there
fore, happens to represent only slight
increase. over what has been practice for
the past three decades. It was not until
the fiscal year 1888 that the Federal per-
centage dropped below 20 percent. 1t
reached its lowest proportion of 8 percent,
in 1946-which is one reason why local
taxpayers are facing an increase now OF
some $i8 100000 under pending legislation,
In these more recent years any number
of schemes have been advanced for meas
uring the actual amount of the Federal
obligation. One has been to apply the
prevailing tax rate to an assessment Of
Federal real property
The late Senator Overton suggested as
basis Of measurement the proportion of the
total land area in the District owned by
the Federal Government, which is now
about AZ percent, and applying this per-
centage to the general fund.
Senator OMahoney had formula that
the Senate approved twice, based on the
net land area owned by the United States
after deducting streets alleys, parks and
land under water.
A novel plan was recently proposed
which would return to the District some
fixed proportion, say percent, of Federal
taxes collected here. The theory here is
that the States return to the cities sub
stantial part of State taxes.
There has been another plan to base the
Federal payment on the proportion Of total
city population represented by civil service
employees
A variety of other plans have been pro-
posed. The point is that all of them, no
matter what the formula, would produce
substantially more in the way of Federal
payment than the existing lump sum
which is based on no formula.
The Federal Government thought it fair
and proper to pay so percent between
1878 and 1922; 40 percent for three years
thereafter. The percentage was drastically
reduced not because the obligation was re-
duced, but under period of rule of the
District by group In the House. no longer
in Congress, who were viciously antago-
nistic to Washington and its people
Senator McGrath's straight 20 percent
proposal as a fixed and annual ratio may
not be as much as some other proposals.
But it would represent vast improvement
over existing practice 1t is based on prac-
tical experience and in principle 1t follows
| the plan which brought Washington its
greatest years of healthy development
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Wholesome Victory
Tho frea world will welconoe the over