The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1919-10-23


0 the mine. and in 1918, a, REASONABLE
allowance for. depletion according t
the peculiar conditions In each case
|, based generally upon market valu
as Of March 4. 1913, but allowing TO
revaauation in case actual discover,
subsequent to that date shall hav,
materially Increased the value.
On the whole. therefore. increasing
taxes have been accompanied by In
, tcreasing reasonableness and liberalit,
las to tax free deductions for depre.
, citation and depletion, although, o.
course, the increase I'm the allowances
has been Of no such magnitude as thu
great increase in taxes.
Ut Is clear that, whether the exist
ing laws be reasonable or senseless
the activities of the revenue bureau
Iare necessarily confined to the limita-
lions that the laws impose. II the
flaws are found to be bad, 1t is to be
hoped that their shortcomings may be
50 clearly pointed out that congress
win see fit to remedy them for the
future; but unless relief, If found to
be needed, shall subsequently be CIV
EN- and made retroactive, which seems
unlikely. tho procedure which must
be followed for the present Is already
outlined in the laws. In the matter
of mine taxation, we can not be ma
terially concerned with policies for
taxing idle mineral lands or unprofit-
able mines, since neither class earns
income. All I'VE can do in the pres
ent connection is to take the laws as
they are and apply them fairly.
The regulations which according to
the laws are to be promulgated by
the commissioner of internal revenue
for the interpretation and application
of the tax laws have been written for
each Of the laws through 1918. But
in their case, opportunity for revision
and improvements is not excluded
For the desire and intention of the
present commissioner are, while add
herring to the limits set by the law, to
administer the tax program in the
light of facts and equity It Is for the
purpose Of assisting in the formula
ton Of rules and the making OF deci-
sions relating to minerals and related
products that there has been gathered
together group of engineers to con-
stitute the recently established SUBJ
division of natural resources Of the
income tax unit. Obviously enough
the main job Of this subdivision is one
of valuation. The metal and coal mi
ming problems have been but slightly
touched as yet, insofar as concerns
settlement of those features that de-
pend upon valuation, for the deter
mination of the taxes in 1917 and for |
the review of the taxes or 1915. The |
two fundamental objects to be achiev-
ed are, first impartial balance as be-
tween different taxpayers in given
Industry, and as between one indus
Try and another and second, finality
Of the decisions. If proper balance is
attained. finality will be assured II,
On the other hand, the decisions are
not sensible and just, there is likely
10 be mo end of revision and unset
ling of results, so, after all, balance
S the prime requisite. The revenue
bureau will endeavor to act in the
oint capacity of trustee for the tax
payer and for the government and
will seek to harmonic the interest of
,ach. /
The latest law clearly recognizes
he Wasting industries. The mining
industry is thus among the few to
which distinctive treatment of any
lind is applied However, not all the ,
of the exhaustible char
cter of mines are provided for in the {
aw, as for example, the establish
nent of replacement fund. Neither !
5 special consideration afforded to \
over the extra hazards involved in
mining. For example, in the average !
usiness, the largest part of the in r
estment Is protected by insurance, c
nd the expense of that insurance is {
roperly charged into working costs. :
he largest part of the mining COM 7
any's investment Is represented by In
re in the ground; the great and var E
d risks that attend the extraction +
that ore can not be insured y
gainst. The only insurance protec- 2
on Is afforded by the increased re- N
I'm to the investor Yet high rate a
interest results in the computation A
low valuation, hence low depletion
fowance, and consequently, high
x. And then instead of deducting
ON income his heavy insurance ex- Z
.nses, much heavier than in most
her industries the miner pay tax on
as IL 1t were true profit. v
Perhaps the requirement of next
lportance is that every effort be -
ade to avoid setting up regulations
ID procedures that will furnish
rong incentive to the mining COM
ny, in the hope of lessening it's tax
rden. to adopt practices or pursue
licies contrary or foreign to the
,tates of good sense and the well
IL 49, no l,,e |