East Oregonian : E.O. (Pendleton, OR) 1888-current, 1922-10-28


Cne great difficulty today is that one-half
the property of Oregon is exempt from taxa
ton, the timber in the forest reserves being
conspicuous example. The only income from
the reserves is the rentals from stockmen for
grazing, of which 65 per cent goes into the fed
eral treasury. | hold that, since tax is de-
rived from this vast body of timber, all the
rentals from grazing privileges in the forest re
serves should go into the treasury of Oregon to
compensate for the vast body of taxable prop
erty held by the federal government out of
taxation. AS governor l would use the pres
tiSc of the office in movement with other
governors and delegations in congress to bring
this about This change would produce about
$3.50 600 year new revenue, thereby lessenng
to that amount the burden on property
taxed.
FOR SEVERANCE TAX
Practically one third of the standing timber
in the state of Oregon is in the forest
and pays no tax. Under the present law, this
timber will be cut Off leaving blackened
stumps of untayabe property, and be shipped
out OF Oregon without paying dollar of tax to
the state. Not only is Oregon being made
poorer by the removal of this timber, but the
natural beauty and scenery of the state is being
marred. A severance tax collected as this
timber is cut and shipped would be large
source of revenue big body of such timber
is now contracted by the federal government to
people from distant states, and it will be remov-
ed without paying any tax unless a severance
tax is at once imposed. AS governor would
do all in my power to levy such tax all
timber taken from the forest reserves
While one-half of the property of Oregon is
exempt from taxation, much of the other half
is paying little no tax because it is invested
in shares of stock bonds and property hidden
away from the assessor. This leaves but
part of the taxable property to bear the entire
cost of government This property which bears
the terrific burden consists of farms, cattle,
horses city buildings and homes.
DIRECT TAX HIGH
In 1921 there raised by direct taxation
in this state $9,493, los, an average of almost
1-2 mills on the property taxed. This is the
highest direct property tax levied in the United
States for state purposes. 1t constitutes nearly
one-half of most of the farmers taxes. and in
the city it often means one fourth of the entire
tax.
In Minnesota in 1920 the direct property tax
for state purposes $l.667.42S. which is
about sixth of what oregon property own
ers We're called upon to pay for state purposes,
and yet the assessed value of taxable property
in Minnesota is two and half times that of
Oregon Minnesota raised the balance of her |
state revenue from indirect sources viz: a |
percent gross earnings tax from public service
corporations and 25 cents per ton tax upon |
iron ore mined in the state.
California in 1921 raised $3G,76S,SS4 for
state purposes. This money all raised
from indirect sources viz: From fees and
from a gross earnings tax upon public service
corporations. Farmers and property owners in
California not called upon to pay direct
any of this $33,76S,SS4.
Wisconsin in 1921 raised by direct taxation
only $7,S0l,545 for state purposes. and yet the
assessed value of taxable property in Wiscon-
sin is four times that of Oregon The balance
of her state expenses raised by fees and by
taxes on net incomes.
rpli he
ers by collecting large part of the cost of
state government from similar sources viz:
% tax on net Incomes CD a severance tax;
t3) tax on gross earnings of public service
corporations. l favor such a program in this
state under the guarantee that any tax derived
from new sources shall not be used for increas-
ed expenditures, but to take some of the bur-
den off those now bearing more than their just
share of taxation.
The practices of public utilities became so in
tolerable that those utilities have to be regu-
lated. a costly public service commission has
10 be maintained for that purpose Since the
has to be maintained for the regl-
ation of the public service corpora. lions those
should themselves be required to
lay the expenses of the commission without
farmers, home owners business and |
other enterprise with that expense. Such a
'lan would save the taxpayers approximately
100000 year. and favor it,
Oregon is. per capita, the heaviest bonded
tate in the Union. We in the midst of a
Wild orgy of bond issues. The thought seems
o be that we can go issuing bonds regard
ess of payday to come later There is a
possibility of having to levy further prop
rty tax to meet accruing interest on these
normous bond issues. a halt should be called
n the plastering over our state of these mort
ages on the property and toll of ourselves and
tIr children. and the state be returned to a
olicy of sound and stable finance l stand
ledsed to such policy.
OR CONSOLIDATION
One of the first things propose to do as
overnor will be to employ every power Of the
ffice to consolidate the boards bureaus COM ]
,iSsions and committees that interfere with