The people's voice. [volume] (Helena, Mont.) 1939-1969, 1963-03-15
Senate FroWned
On Tax Relief
For Bankers


/ 1859, Montana bankers, these
last two sessions, haven't done
too well securing special con.
cessions for themselves at the
expense of the rest of Mon.
tana's taxpayers.
In 1857, you may recall. the bank.
ers after some seven sessions of ef.
fort, finally secured whopping Gu.
in their tax costs via the Bankers
relief act'' which lowered from 80
70 seven per cent the tax classified
ton on certain types Of bank invest
ment capital. Other taxpayers had
TO step in and make up most of the
tax loss 70 county governments re-
sulting from the 1857 act. That tax
relief bonanza, incidently, was the
only major tax reduction recorded
in recent Montana history.
In 1859, the bankers again found
a real friendly concern for their wei
fare IN the Legislative halls when
they came IN with an elaborate "time
pay schedule covering everything
from hair dryers TO automobiles
bought on time. They got about 95
per cent of what they asked and to-
day Montana has one of the nations
highest MISUNDERSTANDING interest
rate schedules. It has been most prof
table TO the money-lenders.
Since then, however, legislators ap-
parently have concluded that enough
consideration has been given this one
particular segment of our economic
society. In 1861 state-chartered banks
petitioned the Senate without sue
cess for exemption from the Cor
poration License Tax. At that time
it was suggested that If they'd re-
organize as co-oPeratives and refund /
all overcharges to their patrons, they |
could forego the state license tax.
Again this past session, the bank |
ers presented the same proposition |
(SB 49,, insisting that compared /
with nationally-chartered banks. they I
are being Disseminated against in
he tax field. National banks do not
1ay the tax, however, they are much
more rigidly regulated in their opera
ions than the state banks. Overall
he state banks may have some small
grounds for complaint, but as one
,anling authority told the VOICE,
he facts don't justify the relief ex-
,mption from the license tax would
,rovide. Rather, said he, they should
'e lobbying Congress to revise fed
raj banking laws so that the national
'anks could be compelled to pay ,
axes into the state treasury to elimi- J.
ate whatever inequities may exist.
SD 10, by Lehrkind, Nees, Beley
nd MCGOWAN, by exempting the A
tate banks from corporation license !
AK, would have deprived the state
of S264,00 annually. l
Among those leading the fight to G
i'll the bill was state bank stock 1
older Mcdonnell (R-Sweetgrass) Z
oncensus of the Senate was that f
18th Montana so badly strapped for = =
TX resources, further tax relief for G
ankers at this time would not be i
reeted with enthusiasm by the tax Fl
aging general public. They were SO +
ght! II
The Senate roll call on SD 10 fol- a
WIS:
For Exempting State Banks
From Corp. License (22) A
llgord Macdonald %
sIey Manning %
'ntz MCGOWAN q
cen Mckenna D,
.WoIfe MicheIs p
,rard Moberly n
'odwfn Nees =
ling Nixon n
nsen O'NefIl n,
.lIer Shaw
hrkind Stein &c
Against Such Exemption (31) H
ferson MacKay IT.
vey mahoney n.
5nner Mcdonnell n
rney McElwain IT
shmore McKeon To
10 MeIcher X.
ton Moritz K,
mining Reardon q
rkee Rfeder
ssauIt Rostad
wards Schoonover u
lham Sfderfus
eve Thfessen
Herman Thomas
nix Ulloni ;c
ntley 10
ASSED THEIR VOTE: Cook, Croft Oh
James -