The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1923-01-12
WOULD RAISE
I INCOME TAX; !.
! LOWER OTHER
Proposed to Reduce State Gen.
eral Fund Property Levy
Through This Method
RATES ARE EXPLAINED
New Measure Before Commit
tee Would Raise $1,5oo,ooo
To $2,OO0,000 a Year
BILL INTRODUCED.


Senator Thorson, this after
noon, introduced in the senate
the income tax ell prepared by
the state tax commissioners Of
fee and already before the joint
tax committee and the house
and senate for brief discussion.
The bill was referred to the COM
mittee on taxes.
In income tax law des gned tt
bring half the amount raised by the
present state general property taS
was before the legislative commit
tees on tax and tax laws today, pro-
posed by the state tax commission.
ers Office.
The proposed lawwas explained ir
detail to the committees in join,
sess on last night by representatives
of the tax commiss toner's off ce.
The proposed law anticipates rev.
enue of $1,500,O00 a year,to $4,000,
900 q year, which would cut the
general fund to levy Of about $3,'
O0O,O 900 in half or more, Lyman A
Baker, of the tax commissioners Of
flee, informed the committees.
A tax of 3 or 1-2 on corporation
! net income and a graduated tax ol
l to 6 percent on individual income
above exemptions was suggested. A
8 percent corporation tax, it was es'
timated, would raise 100000 tt
$8OOO0O in normal year and the in
dividual income tax 100000 to ST.
100000, it was est mated.
The bill follows the line of mode
income tax law drawn by the Ma
tional Tax Association which is be-
ing urged for passage in all states
in order that property shall not bt
taxed twice or any property escape
taxation, Mr.. Baker said.
The individual rates proposed il
the, bill are: on all net income above
exemptions and not in excess o.
$4,000, tax of one percent; income
! $4,000 to $4,000, tax 2 percent; in
come $4,000 to $4,000, tax 3 percent;
income $4,000 to $4,000, tax of
percent; income $4,000 to $4,000
tax Of 5 percent; net income above
$4,000, tax of percent.
Exemptions would be at present
$1,000 for single person, $4,000 fol
a married person with 5000 for each
dependent.
Under the bill, single person
with an income Of $4,000 a veal
would pay tax of 1 percent or
! $1,000, or $40. A married person
with like income would pay moth
ing.
A single person with an income
of $4,000 year would pay per-
cent rate on $4,000, or $3.50 q year
A married person would pay $40(
a year.
There are four main defects ir
the. present income tax law of the
state, the legislators were told. First
there are too many exemptions, par
ticularly bank deposits. income from
loans on mortgages; second, the per
sonal property offset, by which one
can pay income taxes with a per.
sonal property tax receipt; third
the rates are too low compared tG
cost of collection; fourth, the pro
vision with respect to corporations
doing an interstate business is not
clear, there now being disputed
claim of 100000 with such cor.
poration.
The state income tax would, il
was explained, be in addition to the
federal income tax.
Non-residents Exempt
~ 1noa nrn,,sAoI <ho 40 I, ~
that nonresident .indiv' duals woulc
not be subject to the tax, the intent
being not to tax income derived par.
ticularly from farm mortgages made
IN North Dakota by persons living
! outside the state. One purpose, il
| was explained, was so that the mort
/ gage rate would not be Increased
or money withdrawn from the state
and also because of the theory thai
property should be taxed in the
| state Of residence.
The revenue from the income ia,
would be increased both by the in
crease in rate on individuals and BY
removing many deductions now per
mitted.
\ <AusVu6 Vic tkSMo PAVHVocu ~ "
exempted are: proceeds Of life in
surance policies and contracts paie
upon death Of insured; amount re-
ceived as return Of premiums Of
I on endowment and annunity con
tracts; value Of property acquired
by gift, bequest (but the incom,
from such property shall be taxed)
interest upon bonds, warrants, etc.
of U. S. or state or sub-divisio ons,
workmen's compensation; Z salarie'
Of w. s. employees; income from de
| pets n North Dakota banks an,
from bans on North Dakota rea
estate when payable to. 3 foreigl
corporation
Sub Committee Named
Following the outline of the bill
before the JOINT tax committee
subcommittee Of five was named
including Che: rman Thorson of tn
senate committee and Chairmal
Jardine Of the house committee, L
work over the measure and repor
to the whole committee. The sub
committee began discussion Of th
bill with Gordon v. Cax, incom
tax attorney for the state depart
ment, ans may be in position to r