The Daily Alaska empire., 1937-03-01
EQUALIZING GOLD AND FISH
 TAXATION

On the gold tax bills now before the Legislature hinges virtually the entire accomplishments of the present session. Revenue it is evident, must be raised and fish the big taxpayer over the years. is now carrying the bulk of the load. It is paying on an average s334O 900 annually into the Territorial coffers Thus in the plan of equalizng taxation, the fishing industry hardly be expected to pay more
 Therefore it is to gold that the Legislature must look for further revenue All mining of course, is considered but it is gold which is the great producer and it is gold that will pay the bill in any mining that is adopted.
 The impasse in the present Legislature is over the method of raising the tax minerals primarily gold and platinum is included in the category. measure to place three per cent tax on the gross production of gold and platinum mines has passed the Senate. It provides for net tax on incomes of other mines. Another to raise the present graduated net income tax mining also has been introduced but has been held in abeyance pending action on the gross tax bill
 In the House the gross tax bill has run into diff faculties. Those who see merit in the net tax plan attempting to incorporate such features into the gross tax bill and thus eliminate the very thing the gross levy measure proposes to do.
 It is knotty problem and one with sound argu- ments on both sides. But it would appear that op-
 
 overlooking two major conditions. Those are name ly that the paysreak of gold mining has been broad ened through the increase of gold from $2067 per fine to S35 with established government market while the fishing industry is now paying on its gross has had no increase in its paystreak and must constantly fight for market against world competition.
 It is being contended that gross tax on mining is unfair, but if such is the it is equally unfair
 
 ing the tax load through the years promoting by of national advertising the Territory Alaska
 It would be utter folly to assess an impossible tax gold and general mining and thus retard de- veopment, but the fact remains that the three per cent levy is not excessive compared to the tax paid by the fishing industry and it carries an ex- enpton to protect the prospectors and small opera tors who must be fostered if mining to develop it should.
 If the Legislature proposes to promote that de- veoplent through roads, trails and arfieds and at the same time take advantage of the national Social Security program it must raise That revenue should be raised by equalizng the burdenson fishing and mining, which means putting gold on the same basis as fish which pays on the gross production; until such time when the gold mining, fishing and other possible major industries in the Territory reach volume where they can afford to bear the additional cost of Territorial administrative setup which can efficiently and fairly investigate check and audit these enterprises to insure a fair and equitable net tax return to the Territory.
 Under present conditions it is quite obvious that the expense of efficiently collecting net taxes would cost too much which in turn would eventually lead to further increase in taxation.
 The volume of taxable business in other words, in the Territory does not at this time warrant the elaborate machinery that the Federal Government has found necessary to set to collect the national income taxes.
 Consequently, bearing in mind at all times the increased price of gold, it appears that this year equitable tax is the only certain method rais ing the revenue necessary for the desired road trail and airport development program as well as the enactment of the Social Security Act t <sH