Evening star. [volume] (Washington, D.C.) 1854-1972, 1954-03-01
For Fuzzy Thinkers on G. Finances
To the Editor Of The Star:

~ lWS GUtAVt " tWS StUts
THO COMBAT such fuzzy thinking as
u that in recent letters from Mary
lander and Virginian" and IN. z" the
Federation OF Citizens Associations Of
the District on February 20 voted to
initiate Nationwide campaign OF
education on the subject of District
finances. Apparently 1t should begin
near home.
Unfortunately. District income, sales.
realty, and all other tax receipts go into
the Federal Treasury. so that when the
Federal budget includes "$l45 million
for the District Of Columbia" outsiders
get the impression that they substitute
the District In fact, some members Of
Congress have repeatedly told their
constituents that people in the District
don't even pay any Federal income
taxes!
Let's look at a few figures. A dozen
or so States contribute less in Federal
income taxes than the District. yet
receive more Federal money. Recently
published statistics show that the aver
age per capita District payment will be
twice as much as the national average
for fiscal 1855. or 1.2l per cent Of the
Eisenhower budget. while the income
here is only 0.95 per cent Of the national
income and the population only 0.5
per cent Of the national population.
In 1852, one State with slightly less
than o. per cent Of the national popu-
lation paid OBJ per cent Of the national
budget, while District taxpayers max
ing up 0.5 per cent Of the population,
paid Ill per cent: Similar comparisons
could be made with other States.
Likewise. that part of Federal taxes
paid here and allocated towards Fed
eral grants for schools, highways, and
other aids to States amounted to $50
per person, but the District received
only So per person Of these grants. In
the State referred to above. taxes paid
towards such grants amounted to Sill
per person but grants paid to the State
averaged $24 per person. So where do
your readers get the idea that tax
money from all States is appropriated
by the Congress to operate the District?
Rather the District contributes to SUP
port of the States.
District residents pay taxes which
cover costs Of part of the water con-
sumed in Federal buildings; the entire
upkeep Of the ZOO; salaries of Metro
politan Park Police under jurisdiction
Of the Interior Department; salaries
for policemen needed at special events
(for visiting dignitaries, etc), and ex-
penses Of many patients at st. Eliza
beths who came here as Federal en-
ployes and claimed State residence
but whose States will not accept them
as responsibilities.
We pay also for fire protection for
Federal buildings and construction of
streets. sidewalks. etc., adjacent to
them: for construction and mainte-
nance of sewerage and water supply
systems also serving adjacent counties
which do not contribute anything like
a compensatory share: and for con-
struction and maintenance OF bridges
across the Potomac for use by resi-
dents Of Virginia. which State contrib
utes nothing whatever towards their
costs.
Taxable areas in the District are
dwindling. due to exemptions for Fed
eral and District government and
other properties: thus less and less
land bears the real estate burden.
Many States which lave sales taxes
have no State income tax. The Dis
trict has both. When the sales tax
was inaugurated. District residents
were promised repeal of the tax on
household effects. This tax still
stands. District taxes on cigarettes
are higher than any hereabouts, and
while the gasoline tax is one cent
lower than In adjacent States. a pro-
posal to increase it is being considered.
To help finance a proposed $305
million ten-year program Of capital
improvements which have not previ-
ously been made because the Federal
Government and adjacent States for
years have not paid their fair share
for services rendered. most District
citizens we're agreeable to an increase
in certain taxes which would not in
crease the burden on those in the lower
salary brackets except for an already
scheduled increase In water rates and
imposition Of a sewer use tax.
A somewhat higher Federal payment.
plus full Federal payment for sewer use
and water consumed in Federal build
ings, plus Federal loan toward gen.
eral fund improvements, were also sup
ported by the President and the Federal
Bureau Of the Budget. (The District by
law iidC UCCIi O1A u pay ~a0~yOO-SOp doIS'
When the joint congressional COM
mittee decided to withhold the loan and
increase the tax burden on District resi-
dents. not by $40 million annually, with
which they did not quarrel, but by SIS
million, much Of it at the expense of
those on low salaries and small PEN
slons. the Federation Of Citizens Asso-
Citations felt that it had mandate from
the citizens 1t represents, to object
strenuously.
A Bureau Of the Census survey shows
that So per cent Of District families
make less than $4,000 annually. while
the Bureau of Labor Statistics estimates
that modest but adequate" level Of
living for family of four in the Dis
trict is $4.454. the highest cost-of-liv-
ing estimate Of "a United States cities
surveyed.
BIS figures also indicate that the
rent for f1ve-room dwelling unit meet