The Bingham County news. [volume] (Blackfoot, Idaho) 1918-1930, 1923-05-04
IDAHO ECONOMIC BULLETIN
The Reason Why

We are devoting two numbers L
taxation is because of the apparen
general interest in the subject Gu
readers will remember that we con
fined the discussion in the last issu,
to federal taxation. This time we ar,
considering state taxation and expen
ditures.
State Finance
Perhaps no fresher introduction Il
the worn out, subject of state taxation
can be found than the following pass
ages from an address delivered by Mr.
James Munro G. P. A. Of Boise, be-
fore the Idaho Bankers Association
last June. We take our quotation
from the speech as printed, with
marked appropriateness, in the report
Of the Bureau of Public accounts men
toned in our last issue. Said Mr..
Munro: ut seems clear that the pro-
per balance between public and prf-
vate expenditures and the capital re-
Quired for industry Is the proper
starting point in the investigation Of
pubic finance.
1.-The social development of the
people Of this state, which they feet
as a matter Of right should be on u
par with that of other states, has re-
suited here as elsewhere in greatly
increasing our private as well as pub
lie expenditures.
ITO the citizen who complains thar
the government is spending more and
more each year, that 1t is spending too
much on frills' and that the govern
ment costs are taking too large por-
ton of the income of the people, tho
answer is that he, as an individual, -
doing the very same thing If both
public and private expenditures are
excessive the amount that can be set
aside as capital for future develop
ment is decreased and this develop
ment will be impaired.
Before the automobile came into |
general use in this state, one of our
largest items of purchase was farm
implements. But these purchases rep
resented capital invested in our indus
tries and we were benefited in the
transaction. By Analysing our ex-
penditures for the past few years,
however, we find that enormous sums
were sent out for the purchase Of
commodities and service that do not
increase production, but to largo
extent have the opposite effect.
1.-The automobile has affected our
trade balance in this way more than
any other article. Practically moth
ing that enters into the manufacture
of the car or the necessities for its
upkeep and operation are produced
in this state. Nor do we produce the
material for hard surfacing our roaas.
In the past five pears there has been
spent over $60,000,000 for automo-
biles in this state and their upkeep
and operation is costing well over
$1,500,000, per month or $1S,000,000
per year These estimates are very
conservative, Whether in the end
production has been helped by this
expenditure is very doubtful.
"In the light of this condition It
has been left pith but the crumbs ar
ter the public budget has been met
On the contrary, it is apparent thac
the private expenditures have had
more to do with conditions than pub
lie expenditures. l am ertainly not
opposed to the reduction of taxes and
any proper saving must be made. But
if the people had practised the good
judgment that they are asking the
government to use in the matter or
exenditures, had they considered
whether the expenditure was legftr-
mate and necessary and selected the
vehicle, if one was necessary, that
would give the service at the least
cost, both as to original cost and the
maintenance, l believe $40,0O0,000
would have been saved. This would
have paid all of the general state
taxes at the. present rate for the mex,
twenty years 1t would seem that we
are suffering more from financial
than from high tax '
es.