Great Falls tribune., 1921-01-27

duction tax on coal would simply
be increased cost Of commodity
used by nearly every citizen in the
state by a sum greater than the
state treasury received. 1t is not
good taxation economically OF
practically, and coal costs have in
creased already so much to the av.
erage consumer that it would be
particularly irritating tax.
The metals tax stands in diff
ferent basis so far as our citizens
are concerned because we use very
little Of the product at home. The
producers Of metals could not very
we'll add the increased tax on to
the cost of their product because
the price is fixed by competition
outside Of the state. They would
have to either take it out of the
price they receive for their product
or if they cannot afford to do this
cease production. All the metals
produced in the state, copper, zinc,
lead and silver are selling at low
prices on the world market. Silver
alone is held up artifically in price
by government action. In spite of
that fact it is we'll known to intelli-
gent citizens that with few excep-
tions our mining industry is oper-
ating today at less than production
costs, hoping for better prices.
Many of them have shut down al
ready. Still more are operating
with skeleton forces, reluctant to
abandon work altogether and will
ing to stand a small loss rather
than incur the expense Of closing
down the mine and opening it again
when better market prices come
about. To further discourage such
industry by imposing gross pro-
duction tax at this time strikes US
as neither equitable or wise, aud
its probable effect will be to stop
such production in many mines
at this time and increase our prob
lens of non employment, already
felt considerably by labor in this
state. It is bad tax economically
and practically, and besides that
likely to produce very little or no
revenue to the state. In fact it
would not be surprising to US if it
actually decreased state revenues.
The tax on oil production, like
the tax on metals, is a tax on a
product that will probably be sold
largely outside of the state. 1t is
a new and infant industry with us,
hardly yet standing on its own feet.
1t is an industry that requires very
great sums of money. to finance it.
This capital in the main must come
from outside the state if the indus
try grows to great proportions as
every one hopes it will. In that
event it means millions and hun
dreds of millions of dollars invest
ed in lands, pipe lines, refineries,
and all such property will pay taxes
to the state Of Montana as all other
property does. Moreover, such sue
cessful development Of oil fields
in Montana means vast amount
Of wages and new jobs for men
out of work. 1t means a lot of
money from outside the state turn
ed loose in Montana to the advan-
tage Of our business men and the
benefit OF our state treasury that
will share in all business prosperi-
ty. Under such circumstances we
doubt the wisdom as we'll as the
equity Of new tax on gross pro-
duction of oil at this time. It is
hard enough at present to induce
capital to come into the state from
other states in order to prospect
our oil lands. It is as yet a rather
risky business and it costs a lot Of
To advertise to oil men in
other states who take an interest
in our prospective OIL resources
that the state is disposed to put a
special tax on that industry not ap-
piled to agriculture or stock rails
ing, is not wisdom in our humble
opinion, especially as our oil indus
try is in its infancy, and as yet
more OF prospect than a realiza-
ton. ......
We don't like the production tax
on either coal, metals or oil. We
don't like any tax on wealth pro-
duction. It is enough to tax the
wealth after its production. Taxes
on net profits is a different thing. |
Taxes on production generally act !
as check on production and tnat
is bad.
Punge,1t vincent Paragraphs