The Sidney herald., 1956-12-13

If the boards concept is to ge
every possible cent from the pub.
lie, / feel the board has ths
wrong attitude. 1t could be tina
the members of the board are
irked by certain constitutional re-
straints on the taxing power, but
there is an adage with much
truth in it to the effect that the
power to tax is the power tc
destroy.
Chairman Reid is stating the
obvious when he says that al
this coming session of the legis-
lature demands for appropriations
will far exceed funds ~obtainable
under present tax laws. This has
always been the case and it al
ways will be. 1t would be the
case if limitations on the taxing
authority were entirely removed.
w. j. Winters and E. J. Bryne,
Mr.. Reds associates on the
board, have served in the legis-
lature. Now they are on the
other side of the fence, but they
can hardly have forgotten the
task the lawmakers face in try
ing to hold government within
the financial ability of the peo-
pie to support it.
Montana's per capita SLOT
property tax is repeatedly the
highest in the west. Only those
who pay little or nothing in
property taxes and are uncon-
cerned about where government
revenue comes from - so long
as it doesn't come from them -
fail or refuse to recognize that
although a property tax base is
necessary, the ad valorem tax
has gone about as far as the
public can stand. The state board
Of equalization very definitely
recognizes this but appears to
be far less definite as to an
adequate course for relief.
A general sales tax would be
a big step toward meeting public
revenue requirements, but a gen.
eral sales tax is perhaps the most
unpopular proposal that can be
made in Montana. A sharp in
crease in personal income tax
rates would likewise meet with
strong resistance. There being
relatively few corporations COM
pared with the general popula-
ton, raising corporation income
taxes would encounter less OPP
position, but even a drastic up
ward revision of this schedule
would not solve the problem and
it could have a serious effect on
the states economy.
They may not be aware of it,
but there are people in Montana
whose ideas on taxing corpora
tons, either on their physical
assets or on their income, are
punitive. l have never owned
stock in a corporation, but moth
ing is more obvious to me than
the fact that punitive taxes lev
led against a corporation or any
other employer is a sure way of
out of existence the jobs
a lot of people.
The state board of equaliza-
ion has not been seduced by the
that the way to solve the
ak problem is to shift the bur-
len to the other fellow, regard
ess of equity or his ability to
BAY. But apparently there are
many persons who imagine that
hey a have more and more
government service and that thru
,ome magic somebody else, and
lot they, will have to pay for it.
The assumption or inference
hat Montana has been indiffer-
mt to her tax problem is incor-
'ect. The property classification
aw, enacted some 40 years ago,
vas an approach by those who
ought equity in taxation related
o ability to pay. 1t would seem
hat Chairman Reid has misgiv-
ngs about this law, but Montana
las had it a long time and Is
howing no tendency to abandon
t. Efforts of the state board,
ommendable as they are, to
ring about something at least
pproximating equalization of as
essed valuation of property is
lot a pioneering undertaking.
Taxing procedures under Mon
ana law are in need of a good
working over. A citizens COM
1ittee uninfluenced by special
considerations sought by various
roups could point out the faults
nd suggest remedies, but in my
pinion the most valuable func-
such a committee could per-
would be in the field Of
ublic education. How many cit
ems Of Montana have anything
Ike a fundamental understanding
{ the tax structure or tax theor-
s? Not many. And until there
a far better understanding at
le grassroots level there will be
} real reform in our tax sys-
m. IL