Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-07-19
Back in the Same Blind Alley

Since Congress approved the District
public works program in the spring of
1854 local taxes have been increased by
more than $26.5 million.
The full effect of these increases has
not yet been felt. 1t will not be until
October, for example, when employees in
Washington find their take-home pay
reduced by local income taxes withheld
from pay envelopes. A higher real estate
tax rate will be accompanied by increased
property assessments. No one has yet
attempted to measure the impact of
host of new and higher taxes on the local
economy.
In financing the public works pro-
gram, one of the methods devised to
spread the cost over the years was to go
into debt. We are just getting our feet
wet, having borrowed only about So mil
lion of an authorized 1904 million for
public works. But as the borrowing in
creaSeS with development of the program,
interest will be added to other fixed costs
paid by taxes In addition, we have not
yet begun to pay off debt of about SITS
million for the hospital center, now near
ing completion, and another one of more
than 81 million for the Districts share
of the new Federal courts building The
borrowing program was designed to pre-
vent tax increases. Yet we have not only
the debt, but sharp rises in current taxes
too.
The increase in taxes in the past two
years is approximately twice as much as
the public works program contemplated.
For a substantial part of the new taxes
has gone to pay higher salaries, which
were not in the public works program.
The most disastrous development of all,
however, has been that Congress, which
wrote the terms of the public works pro-
gram, has refused to live up to its part of
the implied bargain. Except for the first
year, the Appropriations Committees have
reneged on appropriating the Federal
share which the legislative committees
authorized as part and parcel of the local
tax increases. The diSheartening result
is that we are back in the same blind alley
from which the program was supposed to
provide an exit. Increased local taxes are
being used to cut the Federal Govern
ment's fair share of developing and MAIN
tanning this expensive city.
In these circumstances, the Commits
SionerS would be we'll advised to revive
the committees of citizens which played
so helpful part in launching the public
works program. For the ramif1cationS of
this program, the steadily increasing tax
burden, the steadily increasing debt, and
the failure by Congress to meet IT'S own
obligations, call for a cold review of the
whole business.
Seldom in the history of Washington
was there so united an effort behind
needed improvement as the work of the
citizen committees on the public works
program. Committees spent two years
getting the program in shape, another
year in enlisting the support of the
Budget Bureau and the legislative COM
mitteeS of Congress. But the program
approved by Congress is not being fol-
lowed A new effort to persuade Congress
to follow it is called for now, If we are
not to inherit all the liabilities of the pro-
gram while the assets are being disSipated
by bad faith.
The Commissioners should ask the
committees of citizens to meet at the
District Building and help find way out