Dakota farmers' leader. (Canton, S.D.) 1890-19??, 1909-01-22

DlCk0A - q kiOIlOun VlCCOIy, DeC6uS(
Williams and his cohorts voted tn,
democratic ticket almost to a man.
Tax Reform and Honesty.
Sioux Falls Press: Governor Craw
ford presented to the members Of the
legislature SO convincing an appea.
for definite steps toward the reform
of the South Dakota taxation system,
that 1t is not surprising his forceful
remarks brought out applause from
the members. BY showing that, fol
sheer lack OF information and through
careless or indifferent work by the
local assessors, the state board OF
Equalization closed its three months
task, sick at heart because It was
known that the doing of injustice
could not be avoided, he left little to
be said. Figures cited from county
reports showed a total of only
81, POI 1858 In moneys and credits listed
for taxation in the state, while the
bank deposits alone, not including
notes and mortgages, amounted to
@55, O71, 5000.
Either moneys and credits should
all he actually taxed and uniformly,
or else they should be exempted. 1t
is indefensible discrimination to re-
quire the honest man to pay taxes on
his moneys and credits and allow the
dishonest man to pay nothing. The
administration of the present law is
making South Dakota q state of tax
dodgers. Either an adequate revision
Of the taxation laws must be made af-
ter careful study by q tax commission
or else the offensive and irrepressible
tax ferret will make his appearance
In South Dakota, as he has done in
Iowa. And II he should come, to
force payment Of back taxes on notes
and mortgages, there would be loud
wailing from creditors who could
make nc retroactive increase in In
terest rates to pass the taxes on to
the borrower.
A competent tax commission, In
the light Of the experience Of other
states, would exempt notes and mort
cages and most commercial stocks,
from taxation. Mortgages should not
be taxed, because the borrower always
is made to pay the tax and he also
must pay taxes on the property secur-
Ing the mortgage. II the present tax
Is not exchanged for a recording fee,
that would be certain of collection, 1t
should at least be provided that the
amount Of the mortgage should be de-
Quoted from the property named as
collateral. Notes should not be as
sessed II tho money whose existence
they merely represent Is also taxed;
the unreasonableness Of . tax on
notes can be understood when 1t is
reflected that $500 deposited in q
bank Is taxable once, but, II lent and
: note taken in its place, then, under
the South Dakota law, the lender
must pay taxes nee on the note and
tho borrower must pay taxes again on
the money. The stock Of an ordinary
corporation should not be
taxed In addition to Its real property.
for to do SO Is no more reasonable than
to tax the deed to q farm, In addition
to taxing the farm. The stock is q
mere record Of title and In itself is no
property.
Either discriminatory or double tax
alton breed tax-dodgers. A borrower
who knows he must pay any taxes as
sessed against the notes or mortgage
be has given, II notes and mortgages
IRE generally taxed. will violate the
law by making no report Of the money
he may have on hand, derived from
The premise to pay. And, similarly, he
will assist the lender to evade tax
lti0n on the paper he has given, be-
,ause he knows he must be taxed on
The security, in any event. South
Dakota property-owners cannot be
made honest by relying on their hon
,sty to make them pay taxes twice.
Il IS time that there should be . tax
to devise = code that
would I've certain to obtain payment
4 taxes moe BY every property-owner
md on Ill property.
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