The Kimball graphic. (Kimball, Brule County, Dakota [S.D.]) 1883-1905, 1904-12-09
STATE REVENUES
Problems Which Confront the Propos-
ed Revenue Commission.

Ex-State Auditor Reeves gives the
Following interesting pointers on our
revenue laws:
The regular biennual discussion Of
a revenue commission has already
been taken up by some OF the state
papers-notably the Argus-Leader.
Theoretically, existing revenue laws
are pretty good, but there are many
faulty spots in the application Of the
same.
Theoretically, Il revenue commission
mightaccomplish much. Practically, it
might proYe a worthless as we'll as
expensive luxury.
This writer has made something of
study of both the theoretical and
the practical application of our re-
venue laws, and a consideration Of our
existing conditions might not be amiss
at this time. The great obstacle
which would confront the work OF a
revenue commission is the environ
ment which has existed since state
hood-and back into territorial days.
For instance, take the taxation of
moneys and credits. The law pro.
YldcS that all property should be as
sessed at its true cash value. This in
cludes moneys and credits as much as
1T does real estate. But the custc ms
which have attained, the adjustment
OF the business OF the state to a sy.
stem which has no warrant IN the law
books. has established an unwrittcn
law which presents to a revenue COM
mission a proposed revolution as Stub
born as would be a proposition to
establish Henry Georges single land
tax system.
In many counties and municipali-
ties the tax rate is almost ii not quite
equal to the rate of interest that
money can command on the best class
OF security. How to comply with the
strict letter of the law and at the
same time keep down the interest
rates is problem which a tax COM
mission must face at the outset. To
do this without drying money out of
the state or seriously crippling the
business institutions, will require
wisdom of very high order.
Then there is another condition
peculiar to South Dakota. The largest
individual money lender within our
borders is the state itself. Its grow
ing school fund Of 81 ,0O0,OO and more,
loanable at 5 per cent very nearly sets
the pace for permanent loans. Can
the State successfully say to all money
loaners: "You must pay a tax of four
or five per cent on every dollar you
have to loan, while the state insists
upon being your most active competi-
tor with funds unhampcred by taxes
of any character?"
The complex business of the state is
adjusted to existing conditions. To
the business man the matter of taxes
is one of his fixed charges-one of the
items OF expense which must be taken
into account the same as the cost of
goods, clerk hire and bills for fuel.
His business is adjusted to it, and 1T
must be taken into account in tisur-
ing profit and loss.
How does it affect the farmere Well,
| ii he is a borrower, he doesn't want
his rate OF interest raised by a change
In the present tax system. Ii he is
well-to-do and has money to loan. he
doesn't want to compete with the
states five per cent money, and there
after pay all OF his interest earnings
in taxes. ii he is a successful STOCK
man and can put money borrowed 1T a
| low rate Of interest into young stock
and mature the same ut a good profit,
he doesn't want the rate Of interest
raised by change in the present
system of taxation.
1t will be argued, that a system of
placing all property on the tax rolls
would reduce the rate Of taxation.
But would it? In a growing state like
onrs there is a steady and legitimate
increase in the demands upon the
public revenues. Our school and
public institutionsare growing in mag
nitude year by year, and twice or
three times the prospective revenues
can be put to absolutely legitimate
purposes.
While we recognize the gross Unequal
ties IN our present taxing system, we
would like for some wise man to out
line practical course of reform be-
fore an expensive revenue commission
is created. This writer attempted
once to work out by slow degrees a
system which would eventually make
,, the law of the state the actual as we'll
as the theoretical basis forse our
revenue system. The hardest knocks a
| gainst the proposition came from those
who were supposed to proiit as bcne-
ticiaries thereof, and IL commission
sitting for two years or ten Years
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