The Wolf Point herald. (Wolf Point, Mont.) 1913-1940, 1929-02-08

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mes in the government service can
ascertain if he is making an hon
est and full return. It's the same
old story of the big fellow finding
a way around the law.
Then, another possible objection
to Jergensen's proposal suggests
itself, If 20 percent Of the rev
enue from the income tax is to
remain in the county where col
lected, a few Montana counties,
such as Silver Bow, Cascade and
Yellowstone, where there are large
industrial and professional pay
rolls, will receive more on the
basis of population than the
sparsely populated counties which
have no industrial centers or
large business communities.
Mr.. Benjamin approaches the
problem of getting more state
revenue from another angle. He
would levy on the people Indirect
ly by slipping it in their electric
light and power bills-for that is
what will happen if the state
leyies a license a. on the gross
receipts of hydroelectric COM
panies. Public service corpora
tions-railroads, power companies,
etc,-have a way of passing tax
burdens along to those they serve,
just the same as a manufacturing
industry has a way of putting the
tax in the cost of the article it
produces.
The advantage of Mr.. Benjamin's
proposal, then, is that the state
would collect this additional rev.
enue from four or five power COM
panies, thus not adding much, If
anything, to the expense of tax col
lections. And though consumers
would have to pay this
increased tax, they would make
their payments in their electric
light and power bills without feel
ing the jolt all at one time.
The disadvantage Of this plan is
that it would tax principally the
residents of cities and towns
hose who consume electricity.
Mr.. Benjamin also has a pro-
posal to eliminate the deductions
now allowed mining operators I'M
der the metal mine tax which was
voted by the people four years
ago. Aside from the question of
whether the legislature has the
right to change the fundamental
provisions of a law initiated and
voted by the people, is the further
question Of whether Mr.. Benjamin
would be attaining the objective he
seeks in wiping out the deduc-
lions.
Apparently, he desires to in
crease the revenue from the met
ais mine tax and presumably he
wants to get more from the big
companies, but the method
lie proposes will operate more
small companies than
the big ones. This will
,e better understood when it Is
recalled that the graduated levy
IN gross production under $780,
100 was fixed to protect the small
miners from having to pay as
much tax, proportionately, as the
zig companies whose gross pro-
Luction exceeded 100000.
It is, of course, all right to adj
-ance and to discuss all possible
yays of raising the revenue that
) required for the state and In
t~itutions. A combination OF all
nethods may In the end be wise.
t always remains to be said that
IL classes of property and all
ines Of business should be will
ng to share in an equitable way
hat additional revenue 1t may be
and desirable to supply
t the present time. Taxes should
ever be aimed at any particular A.,
interest simply for the gaining OF
u advantage. We think the pres
Mt legislature is trying to work
ut the tax problem so far as