The Daily Missoulian. [volume] (Missoula, Mont.) 1904-1961, 1917-02-24

the lew tH1nSS winch can Dc deter
mined by this assembly" said Mr..
Higgins. "The subject is deep one
and the remarks which I. am about to
offer to this committee are the ac-
emulation OF six years Of study.
There has been a wonderful trans
formation in public sentiment during
the last few years. H. B. 345 would
not have received so much as a smile
from the first assembly in which 1
served. The great corporations have
now permitted this assembly to levy
tax Of three-quarters of one per cent
on their net incomes. This bill is al
most a direct copy Of the federal in
come tax law. 1t has been stated that
this is a revenue measure and an
emergency measure, but l wish to
state that it doesn't represent the
views Of all of this assembly.
Revenue Failure.
1--WE are here to equalize the tax
burden. I believe that there are GER
tain interests in the state which are
not paying their just share of taxes
and never will until the strong arm Of
the people compels them to pay their
just proportion. They speak of this
as an income measure. The federal
income tax of one per cent on all cor
porations In .ne state netted s265.OO0.
Under this measure we have here GER
tain corporations are relieved so that
this bill will not yield the returns
which have beep paid to the federal
government. Yet they do not levy
even a one per cent tax but they make
1t three fourths and what would this
yield? 1t would produce about $780,
100. As revenue measure then it is
a total failure. AS revenue measure
it isn't even worthy of remark The
amendment offered graduates the tax.
$15,o0o,o0o Income.
1.-THE corporations should pay ac-
cording to their ability and in this
measure have provided a higher rate
than before. The rates increase ac-
cording to increased income because
the people back of this bill believe
that the corporations making enor-
nous sums Of money should pay ac-
cording to their income. On u net in
come of 100000 this amendment
would cause the corporation to pay
-$4,062.50 to the state Should any
corporation in the state clearing this
much money not be glad to pay this
much into the state treasury? Under
the deductions permitted under the
federal income tax this amendment
would have called on the Amalgamated
Copper company to pay tax of s541,-
900. approximately, and submit this
Is not eXorbtant for such a magnifi-
cent return as fifteen millions net in
come. In addition the present bill per-
mitS of more than does the federal
law"
Other States.
Higgins here cited the methods of
mine taxation in Michigan, Wisconsin,
Arizona and Minnesota and compared
them with the system in vogue in
Montana. The comparison showed
that Montana's tax was far below that
of the other large mining states. After
referring to the Montana system as
archaic and not in line with pro-
grcssive sentiment Of the United
States he continued:
Two Years from Now.
THE question of taxation is a burn
ing issue in this state at the present
time. l think it's incumbent on this |
legislature to save the mining inter-
ests in spite Of themselves because
two years from now the people of the |
state will put a tax on them which |
will be confiscatory. I think we have |
enough information to legislate fairly |
and with all respect to Mr.. Gould. |
whose name appears on this bill. and
to the ways and means committee,
think it would be an insult to the |
people of Montana to pass such q
measure. 1t doesn't equalize taxes. !
We know that the mine represent |
atives say that the mines are paying |
their share, but an overwhelming ma
jority of the people of Montana know 7,
that the mines do not pay their Just /,
share. BY the metamorphosis o. SEN
timent in the people of Montana I
know that they are not going to sit !
supinely by. wag their heads and al
low any great interest to dictate the
policy of the state.
''The sun is setting In the west as
far as corporation influence is con-
cerned. They are welding the big in |
fluence now, but tell you that the
day is not far distant when the people |
OF the state Of Montana are going to
declare themselves free from the
clutches OF corporate influence and are
going to legislate for themselves. This
bill, or amendment is not the product