The people's voice. [volume] (Helena, Mont.) 1939-1969, 1946-12-06
TAX PROBLEMS ON THE STATE
AND LOCAL LEVELS

ton per $1,000 of taxable valuation
ranged from 1896 in Meagher county
to s3O.33 in Lake and S31.S4 in Flat
head county.
For General Government
Expenditures for general govern
ment ranged from S5.6S per $1,000 of
taxable valuation in Glacier to $23.36
in Petroleum.
Defects Pointed Out
The extreme inequalities in oppor-
tunities for education and other public
services, the inequalities in the bur-
den on the taxpaying public to carry
on the services, and the general prob
lens of taxation have been examined
and publicized time and again. Defects
have been pointed out and remedies
suggested. Let us examine some.
Unfair Taxes
Among students of the subject, the
most generally accepted first principle
is that taxes must be levied according
to ability to pay" This means that
those with the higher incomes shall
pay more than their proportional share
of the taxes.
But judged by this standard, Mon
tana is no exception in the general
violation of this principle The tax
load bears too heavily on those least
able to pay
The Property Tax
Except for the war years when
farmers in particular enjoyed COM
parative prosperity, too great reliance
has been placed on the property tax.
The briefest illustration will be suffi-
cient. While the state constitution
makes it the duty of the state to es-
tablish and maintain a general, uni
form, and thorough system of public,
free common schools, the major bur-
den of finances has been placed on the
district and county which in most
cases had to depend on the property
tax. This has proved both unfair and
The fluctuations in farm
and ranch incomes from year to year
since the first world war have many
times Imperfect education and other
services. 1t has ranged from around
300 million in 1919 to low of little
more than so million in 1892 In other
words agriculture in 1882 was only
about 1/6 as able to finance services
as in 1919. From 1880 to 1914 agricul-
tural income fluctuated on the ratio
of about / to 5.
Rnf that 10 ha 1rr oh
to an undue reliance on the property
tax In 1914 about 1877 or more of the
tax dollar came from city property.
Much of this load is borne by small
income groups-home owners and ten
ints-and thus becomes in reality
tax as does the tax on
business institutions.
Defects In The Tax Unit
Somewhat related to the property
ak is the inadequacy of the taxing
init. In many cases the units are en-
irely too small to provide revenue,
Efficient personnel, and a minimum of
ervice
Tax units, especially for education
purposes have been set up to include
'ublic utilities and other revenue pro-
Iucing properties leaving all too often
parsely settled areas with low valua-
ions to shift for themselves. The re-
suit is that the people get too little
service and pay too much for what
title they do get.
Inadequacy of the tax unit may also
farfnr, I,
nd uniformity in assessment proce-
lures, health service, and other acti-
titles.
Lack OF Planning
There has been a lamentable lack
1 planning for sound fiscal policy.
90 often have we spent, built, and
onded in times of prosperity and con-
racted in periods of depression. Stu
ents of economics tell us that during
eriods of initiation and prosperity
axes should be maintained at a high
svel to create reserves for the trough
I depression.
Why?
As glazing example of violation of
his principle and the lack of insight
ito the need for developing a sound
seal policy but one example is need
d. Article XII, section provides for
levy of 2 mills by the general state
GARD of equalization for fund. This
syy has not been in effect since
941
Why the administration failed to
tilize this 2 mill levy during those
ears G941-1946) to build reserves for
Gamer years is difficult to explain.
Only political expediency seems to
nswer the question. For no one can
Ill to see that added postwar budgets
lust be reckoned with. The result
lay well be that we shall find ourseI-
es face to face with the two mill levy
hen we are less able to pay and with
le threat of sales tax.
(The next article will deal with
roposals made to remedy certain de-
'cts in the tax structure)
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20 Qxc, M 81