The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1934-10-19
GROSS INCOME TAX,
OLD-AGE PENSIONS
issues FOR S0LONS
Legislators and Officials Agree
Present Statute for Aged
Inadequate
SCHOOLS LACK REVENUES
Replacement Tax Being Studied
as Means Of Aiding
Institutions

Creation Of gross income tax, pos
sibly within certain limitations, lib
eraliZation Of North Dakota'S exist
ing old-age pension law, will be two
prime issues involving interest Of
legislators at the coming session Of
the state legislature.
Receiving wide support Is the plan
for extension Of sources Of income to
effect larger ratio Of payment Of old
age pensions.
Both solons and state officials are
in agreement that North Dakota S
present old-age pension law is made
quate to meet the needs Of the states
aged.
While some feel that old-age pen
sioning ITO be really effective" should
be q purely federal function, they
adopt the attitude that should no ac-
ton be taken by the national govern
ment, the state body should meet the
problem with q pensioning act which
will give those entitled to 1t an ade-
quate sum.
Present Levy Small
Under existing laws, distribution of
pensions amounts to little more than
- per year per eligible person. The
fault lies, critics say, in too small q
levy being made.
Introduction Of bills in both houses,
by both Democrats and Republicans
to liberalize the pension act, is q vir-
tual certainty, state officials agree.
A complete new bill sponsoring q
new old-age pension system Is to be
supported by the recently formed
farmer-labor group, one spokesman
said.
While social legislation will be an
important task. q larger legislative
battle is expected to center around
attempts to pass q gross income tax,
or new replacement sales tax.
Facing divided opinion. any such
new tax proposals, termed necessities
by some administrative heads, will
evoke storm.
Failure of the general property tax
to produce sufficient income by rea-
son of defaulting of tax payments will
be one principal reason given in sup
port Of gross income tax.
Weeks Studies Bill
J. j. Weeks, state tax commissioner
has under contemplation the forma-
ton Of such a bill, although to what
extent it will be levied has not been
determined.
North Dakota's comparatively small
population creates additional prob
lens In connection with the gross in
come tax proposal. In other states,
Weeks pointed out, where populations
are larger, the plan has been success
full, producing large revenue for the
state.
In North Dakota, because Of the
limited population, small exemption
may have to be made, together with a
higher percentage Of levy than In
other states, 1t was explained.
With school funds at low tide In
most Of the state institutions, by rea-
son of sliced appropriations. the nee
essity Of solving future school needs
by means Of q replacement-sales tax
has been advanced.
State Representative H. /. Peterson
Of Plaza said q bill to create q re-
placement tax Is being prepared for
introduction at the coming session.
The bill, he said, would be designed
to include not only sales tax, but al
so to eliminate taxes on homes and
real estate.
Sales Tax Is Issue
Whether any sales tax measure
would be widened to include all pur-
chases, or whether it would be limited
only to commodities outside neces-
stiles Of life rested in the proposals to
be submitted. i
Alfred 8. Dale, state treasurer
Farmer-Labor candidate for U. 8. Sen
ator, said he was opposed to any sales
tax. claiming it provided means for
railroads and utilities to escape tax
ation." He said he might favor" q
graduated gross income tax" but
that he would oppose any tax which
included foodstuffs.
Arthur e. Thompson, state super
intendent Of public instruction, has
given his support to replacement
tax, provided income derived from It
be used solely for school purposes.
Similarly, Nelson Sauvain, chair
man Of the state board Of administra-
ton, has sounded the need for "some
other means Of income which will aid
the schools-state institutions-to
carry on as they should"
Sauvain pointed out that many
necessary developments at the various
state educational institutions had been
held up during the past three or four
years because Of lack Of funds with
which to carry on the work. Repairs
Of buildings and construction Of new
additions to care for expansion has
become necessary, he said.