Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1919-03-12

Of the state who felt that interest up
on mortgage loans and other invest
ments should pay in tax q small per-
centage Of the amount Of income
from such mortgages. but under this
law as it. is now upon the statute
books, a great percentage Of the in
come that It was urged should be
the tax that will be derived from this
law will necessarily come largely
from the farmers who grow large
crops and professional men who have
small amounts Of taxable property
and yet a large income.
n Tax on Business.
1.-THE law would also reap consid-
cradle income from businesses Of the
state which also have considerable
tangible property. such as merchants,
excepting that the taxpayers under
ted to turn in. in part or all OF h
payment Of the income tax, their per-
sonal property receipt. which shall be
received a. money upon the income
tax. Therefore, II q merchant is as
sessed $500 for income tax and he
has paid more than that amount in
personal property tax, he will no be
"The advocated Of an income tax
law believed that such an act would
require a reasonable tax from the
money loaner and the person who
lives upon the income from property
heretofore acquired. but it would
seem that this bill, as amended. to a
large extent releases this class OF
cent Of tax from this source upon the
people who r living in. building
and maintaining the state, and who
are already taxed to the limit. w.
Tax on Corporations.
Another feature of the bill Is that
the imposition of q. three per cent tax
upon the income of a North. Dakota
corporation and then taxing the d.
vision Of that income again when 1t
Of a dividend. at twice the rate as is
charged to the individual doing b@si-
ness as such, makes it impractical for
the people of the state to avail them
selves Of the right to associate them
selves together and do business IN q
corporate name. In other words, that
II residents Of this state associate
have to pay but n tax upon their
incomes, which would come under
the rates provided for earned in.
comes, whereas IL they incorporate
that rate is doubled for the reason
that It comes to them in. the forr1so1
g. from g. cofpOf4tlOn. Ano
it ia, twice the rate It would be II they
weE1i: doing business a q partnership
Amt linen, on ttUpfFFp3A that, theacor'
poration must pay I'm addition to- THU
double rate the three per cent ia,
upon its income as a corporation.
1.-THE opinion is general that thu
laws Of the state permitting its citi'
,zens to associate themselves together
as a North Dakota corporation wer'
intended for q convenience where
three or more persons wished to joi1
a portion Of their property and Of
forts with a view to facilitating tn
work and securing a more economical
result. As an illustration, a number
Of farmers or merchants might flint
It convenient to assc..cte themselve
together, combining their capital ant
labor in a corporate name for tn
purpose Of running an elevator,
store or a bank, but the trainers o
this law seem to assume that as 500
as they do this they are q money
making corporation, or Big Business
with disproportionate income and ar
able to pay double and treble tn
taxes. The law in this respect penaliz
es our own people and results in tax
ing out Of existence the use Of
statute that has extended a privileg
to the people and made possible man,
cooperative undertakings"