The Mitchell capital. (Mitchell, Dakota [S.D.]) 1879-1918, 1913-10-29
Gov. BYRNE UPON
Observation-Disclosures

stated that the general person
al property tax system as provided
for in Il constitution, has broken
down and failed not because I be-
lieve that some classes of personal
property should not pay a tax, but
because if has been found impossible
TO apply it equitably under such a
constitutional provision as ours,
here or elsewhere; because under it
the rich money lender scapes tax
alton while the poor borrower pays
tax for both; because the farmer,
with half a dozen, a dozen, twenty or
fifty cattle is fully taxed, while he
who owns thousands, grazing them
perhaps on free range, pays tax on
but few; because he who takes his
conscience-and his reliaion-into
his business dealings, pays not only
his w fair share, but a part of the
fair share OF hin whose conscience
sleeps during business hours; be
cause, in short. to quote again from
my statement, while "it is equitable
in theory it will not work out in prac-
tice" equitably between individuals.
In regard to your references to the
~desirability of eXempting part or all
of the improvements on land, in order
that industry and enterprise be not
p~enalized, and that the Spectator
and nonresident land owner would
be obliged to pay as much taxes as
the farmer alongside who improves
his land" surely you much know
that, if ii is decided to adopt such
system, the amendment of 1907, or a
similar II is necessary to, and
would open the way for, this.
In regard to the taxation of mon
eys and credits, ! hold that so long
as we retain the general personal
property tax. these should pay in
common with other personal prop
erty.
There is no reason. in equity or
terest bearing securities-the most
desirable form of income property
SHOULD be exempt, either by law or
in violation of law, while he who
paws the interest should be COM
PEELED to pay taxes for both. Capital
engaged in banking is required to
nay tax the same as other proDerty;
there is no equitable reason why an
individual should not also pay tax
on his ~loaning capital. With the m
endment proposed in 1907, or a
similar one. system could be devils
led under which all this class of pro-
nerty might be brought onto the tax
list, and which, while equitable and
fair, need not be in any sense burd-
ensome. I repeat, 20 long as we re-
tain the general personal property
tax, this class of property should pay
its share, but we should adopt an
equitable system that would not, as
row, he extremely ~burdensome to
those who do return this class of pro-
perty. and which would. at the same
time, produce many times more re-
venue than is now received from this
source. Personally, | would like to
see an income tax submitted for part.
and ultimately all, of the personal
property tax: but unless, or until, the
people adopt this plan, all kinds of
property should pay its fair share. I
would abandon the so-called "Gener-
al Property Tax" not to exempt some
classes of property at the expense of
others, but that we might take diff
ferent classes separately. and provide
simple, equitable rules by which each
kind would contribute equitably.
And o Il word in regard to your
criticism of the tax commission and
the administration for enforcing and
administering the law as it is. | have
only to say that / shall continue to
expect the tax commission and every
other department of the state gov
eminent to obey the law and admin
lister it just as it is found, equitably
and fairly between all; and if per-
lection is not attained in this purpose
/ shall continue to try to come as
near to it as possible.
At the proper time / shall again
recommend to the people changes in
the taxation laws, and, | may add, the
tax commission will, also, but if such
changes are not made, or whether
they are or not, so long as | am gov
n l shall continue to obey the
law, as expect others to. and especi-
ally shall ] continue to demand that
the different departments of the state
government administer the law as
the people have provided it.
FRANK M. BYRNE.
Pierre, S. d., October %, 1918.