The people's voice., 1956-12-07
Continued from Page One)


men representing all walks of life
port added:
"A thorough study by this group will
reveal how far we have drifted without
firm program. The need for economy
in all departments will be evident, and
finally the attempt to balance avail
able revenue with present and future
demands for public services will prove
the need for a back-to-earth begin
ming"
Reid said the committee and it's di-
rector should be Montanans and he be-
lieved Montanans could solve their
own problems. He made it clear he
opposed going outside the state for
study director in a direct reference
to the recent highway study.
No great hope or tax corrections was
expressed in the next legislative ses-
sion. The report said:
Anything that can be accomplished
regarding taxes will be of a tempo
rary nature for most pressing needs.
StOpgap legislation of this type has a
tendency to compound past mistakes
and further distort existing inequali-,
ties
The report called for "a positive
ceiling to protect the property
base if we are to avoid stagnation in
individual ownership and industrial
If we insist on keeping the prop
erty classification law, the ceiling on
property will have to be on a millage
basis. If the property classification
law is discarded, the ceiling can then
be on a dollar basis. The millage cell
ing should be limited to 40 mills for
all purposes but debt service. If on a
dollar basis, the ceiling should be linn
tied to one per cent of full and true
value"
INCOME TAX
Chief recommendation on income |
taxing was that the Legislature should |
simply agree on the total dollar amount |
that it wanted to spend any two years, !
and then leave it to the tax board to |
figure the taxing percentage.
Another step to make state income
tax reporting as simple as possible
was advanced The taxpayer would
irst figure his federal income tax and
Ise only the total to figure his state
ak and report it on a small card. The
itate would double check these against
original reports to Uncle
sam.
Reid said this would cut the cost of
the state income tax,
low about $196,OOO a year or little
nore than one per cent of the over
II take.
The former Glendive automobile
gency operator added that this would
ermit savings to be passed back to
axpayers and a deduction for the
ged and the blind, not covered now
Finally, the report urges a minimum
lcome tax payment of S. OF $4,000
ersons making Montana income tax !
eports, 10000 figure enough deduc-
Ons to avoid any tax The proposal
nus would mean 100000 more income
lx from 10000 hitherto untaxed per-
OnS.
ORPORRTION LICENSE TAX
The report recommends: 4
"A complete new corporation income \
TX law with the tax measured by a
ross income The tax rate should c
ary with types of corporation and +
ould range from one-quarter of one a
sr cent up to one per cent. F
There would still be some cor t
orate operations not subject to this :,
x, so the present corporation license il
*, revised to meet modern conditions, 81
ill would be advisable as an adjunct
the gross income tax.
When total revenue from this
urce is brought up to proper rela- =
onship with others, adjustment in /.
OBSERVATION-DISCLOSURES
lY Ec EETTED TN IL