The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1934-12-18
GROSS RECEIPTS TAX
DISCUSSED BY BAKER
Pros and Cons on Proposal Are
Outlined at Luncheon OF
Bismarck Kiwanis Club

Pros and cons on the proposed
gross receipts tax for North Dakota
were discussed before the Bismarck
Kiwanis club ut the organizations
luncheon meeting Tuesday by Lyman
Baker, former deputy state tax COM
missioner who now Is director for q
debt and financial survey Of the state
under the FIEA.
Opening with . declaration that,
since the proposed gross receipts bill
has not yet been drafted, he must
merely guess Is to its probable pro-
visions, Baker said It was his under.
standing that it will be similar to the
Indiana gross receipts tax.
The speaker said . new type Of
taxation ct this time appears neces-
sary, particularly for relief Of school
districts, since the general property
tax has failed to produce necessary
revenue for several reasons.
Blames Reduction, Depression
Reduction o. the taxable base from
IS to 50 per cent Of actual property
valuation, coupled with inability to
nay through the depression and UNI
productivity Of property was blamed
BY Baker for the states present tax
difficulties.
School districts which do not have
the benefit Of railroad taxes are UNI
able to finance their educational
units properly, Baker said, In point
ing to the need for equalization Of
distribution Of revenues.
He called attention to the five
point program being sponsored by
educational groups and the American
Legion, the first proposal Of which
Is gross receipts tax.
The gross receipts tax Is broader,
he said, than the sales tax, which
has spread to Is states Of the Union
since the Worlc War, because It would
collect from . much wider source than
the latter. For the same reason. he
said, it would be much more difficult
in administration. Because Of the adj
ministration difficulty. Baker told the
Kiwanians, the sales tax has his per-
sonal preference at this time.
Still, he declared, the sales tax puts
q greater burden proportiouately, on
the "lttle man." Baker said the small
merchant must absorb the tax while
the larger firms are In position to pass
the tax on to the consumer. In
enumerating the advantages Of q sales
tax, Baker said that all Of them apply
In Z greater degree to the gross re-
ceipts tax. Despite this belief. how
ever, he said the difficulty Of admin
istering the latter turned him against
the plan.
Next Meeting Jan. ;
Walter q. Render, club president,
announced that the next meeting Of
the club, In view Of the Christmas
holiday next Tuesday. viii b held
Thursday. Jan. 3. At that time, ne
said. James w. Guthrie Will be in
stalled as president for the next year.
He also read q letter from District
Governor Carl e. Mund relating to
the Kiwanis Educational Foundation.
Mrs. G. A. Narum sang two solos.
'.Rose In the Bud" and Cradle Song
on Christmas Eve" the latter In the
Norwegian language. She was &C.
companied by Clarion z. Larson, pro-
gram chairman.
Guests at the luncheon included q.
H. Herman Of st. Paul, Mimi, and
DR.. Fred r. Stockton Of Fargo, state
Baptist superintendent, who deliver
ed invocation at tho opening Of thu
luncheon.
J. p. Wagner led the group In sing
inT Christmas carols.