The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1935-01-31
The Power to DESTROY

The Power TO Destroy
1t may be that taxpayers are more
vocal than other classes Of citizens,
but whatever the cause taxes still
continue to form the chief subject for
elaboration both in Washington and
in our state legislature.
The average citizen cannot fail to
note, however, that the approach is
different from what he would like it
to be. Whereas the man in the street
feels that he should pay less, most
OF the tax discussion, particularly in
our state assembly. is directed toward
the problem OF how to make him pay
more.
A splendid example is contained in
current talk Of sales. transactions
and gross income taxes. These differ
only In details, for the effect Of each
is the same. The reasons given for
promoting this plan are that the
people haven't the money to pay cur
rent real estate taxes and it is necsS-
sary to find levy which they cam
not escape. In other words. the APP
proach is from the angle of how to
obtain more rather than of how to
spend less. discouraging thing for
the family man who has hard enough
shedding as it is.
It is only natural that. under the
stress of the times, public officials
should look about for means to keep
the various departments of govern
ment functioning. They have a vital
and personal interest in that. But it
would seem the part Of statesman
ship to view the governments plight
merely as reflection of the situa-
ton besetting the people and devote
major efforts toward tightening the
burden rather than readjusting the
pack SO the poor tax-paying donkey
can be made to carry more.
Two current examples prove the
point and emphasize the arguments
against the sales tax which was de-
feated at the special election in 1888.
The first illustration of what
sales tax can do is contained in the
November report Of the federal emer-
gency relief administration for North |
Dakota. 1t shows total expenditure |
of 81 400 264.77, OF which $l,262,l52.84
went directly for relief The remain
der was used for special programs /
and administrative costs.
The effect OF any sales or transact
tions levy would be to tax this money.
to further raise the cost Of goods and |
thereby impose new hardships upon |
relief clients who have all too little |
as it is. In addition, 1t would raise
the cost OF living for everyone resid- /
ing in North Dakota. Whatever tax I
relief might be granted to tangible /
property would be shared equally by
persons outside TIC state who happen
to have investments here.
The legislature should realize that
there is q fundamental difference
between taxing an investment and
taxing the essentials oi lite.
The second illustration is the pro-
posal to levy production tax of Is
cents ton OH all coal mined in the
state, reported to have been voted at
q majority caucus Of house members.
The coal industry already has been
revamped by adherence to NRA
standards. The proposed tax would
require still further adjustment with
every prospect Of working damage.
not SO much TO investors in coal prop
critics as to their employees and the
consuming public.
The inevitable result would be to
raise the price of coal, prime neces-
sity In those regions where other
fuels are not available. 1t would still
further encourage the use OF gas,
where this fuel is available, and OF
Oil burners. Thus the state would,
by taxation, be imposing handicap
upon the operation and further de-
velcpment Of its second most impor-
tant industry. To make it worse, the
proposal would discriminate against
home industry since imported fuels
would not bear this burden. This
would be serious blow to the Ignite
industry in its fight for a broader
market in the eastern part Of our own
state and In neighboring states and
would reduce the amount Of employ.
ment.
It may be trite to quote the maxim
that "the power to tax Is the power
to Destroy" but the legislature might
Temember that to tax necessities is
to destroy in part the ability to buy
those necessities. TO tax an industry
Is TO impose new burdens upon that
industry.
Our lawmakers might properly real
s5e that the public protest about taxes
IL mt arnir,st the tnekhods If law