Evening star. [volume] (Washington, D.C.) 1854-1972, 1962-12-22
Unhappy Tidinqs


sugar plums conjured up by the Presi-
dents determination to press for a Fed
eral tax cut have been rudely shaken by
the Commissioners announcement that
a public hearing on District tax increases
will be held January IA. Thus are Dis
trict residents left during this happy
holiday season to ponder the prospect
that what one level of government pos
sibly may giveth next year, the other
level most surely will taketh away.
In fairness to them, the Commits
sioners have very little choice in the
matter. The city needs about $34 mil
lion more than is now in sight to sustain
even barely reasonable budget next
year. Without added revenues, the con-
struction Of school buildings, hospitals,
welfare institutions and other needed
public works would shut down COM
pletely. Since that must not occur, some
rise in local taxes seems inevitable. And
the decision of the Commissioners to
hold hearing on how and where these
raises should apply is of course a pru-
dent one
Their preliminary proposal for So
million tax boost nevertheless is ironical
in two respects. For, first, the Commits
sionerS have turned once again for the
bulk OF this amount, about SIS million, to
the real estate tax-the very type of
taxation which citizen leaders and pub
lie officials ScrupulouSly attempted to
avoid 10 years ago, when those two
groups got together to draft a basis for
financing long-range program of pub
lie improvements. The District then, as
now, was faced not only with the prob
lem OF raising revenues, but of curtailing
the exodus Of the most solid elements
OF its tax base to the suburbs. Accord
ingly, the intent in 1852 was to impose
additional taxes over the years chat
would be least harmful to the economic
and social stability of the city" The
following year, long-range financing
plan was developed along these lines,
in which Congress, through larger Fed
eral payments, and District residents,
through the "leaSt harmful" additional
taxes, would share in the expense of the
public Improvements. Over the years,
however, this sound concept of local
deed, in recent years the real estate tax
has become one Of the first ports of call.
And not only have real estate tax rates
been raised, but property owners have
absorbed double burden through a
constant reassessment of property value.
The SECOND IRONY is that another
round of major local tax increases should
now be imminent in view of the Fed
eral Governments failure to keep its
part of the public works financing bar
gain. In January, 1854, President EiSen-
hover predicted in message to Con-
greSs that the new plan would for the
first time in recent years, place Federal
payments to the District government on
a level commensurate with the Federal
Governments position in and its de-
mands upon the District" It would, he
said, permit the District to start a
long-term program of public works nee
eSsary to make the Capital City worthy
Of our great Nation"
The Federal load was by no means
onerous. In terms of the Federal interest
in Washington, 1t was picayune. Almost
from the start, however, the Congress
appropriated inadequate Federal funds
to satisfy the high ideals expressed by
the President. And the direct result is
that the backlog Of needs has grown
each year. The defect in the public
works plan of a decade ago is clear
enough. 1t was simply that Congress
could not be committed to an unalter-
able program Of financing the capital
requirements Of the city
Yet unless this does occur, unless
some formula is adopted by which a
continuing and practicable Federal
share Of the expenses is appropriated
annually, the needs Of the city will
never be truly met. Certainly by their
own statement, the new tax package
suggested by the Commissioners for 1868
will be wholly inadequate for that pur-
pose. And the dilemma-if nothing else
is done-will continue TO worsen.