The Nonpartisan Leader Newspaper, February 23, 1920, Page 4

g ~ NORTH DAKOTA TAX FACTS How Big Is the Increase and What Is the Cause? ‘A Plam . - : Statement, Backed Up by Official Figures This_article gives some plain facts, comparing present taxes in North Dakota with taxes of previous years and “ showing clearly what increases have been made and the reasons for them. A second article, in a later issue, will compare North Dakota taxes with those in other states. BY E. B. FUSSELL s | HEN some statistician gets around to figure it he probably will find that . enough has been written about North Dakota taxes to fill a good-sized pub- lic library, or if typewritten sheets were laid end to end to reach halfway to the moon. Writers have said that the North Dakota industrial program has bankrupted the state, that state taxes have increased four times, ten times,”or whatever the imagination of the writer thought people possibly might be induced to believe. All this is taxation fiction. = This article will be devoted to taxation facts, with official figures to prove them. Facts are simple things and it will not be necessary to fill a Carnegie library with them. One page of the Leader will be enough. These are the facts: ! North Dakota state taxes (the only taxes for which the Nonpartisan league is in any way re- sponsible) have increased much less than those in other states. The increase has not been due to the state indus- trial program, but was due to these causes: First—Previous state administrations had sys- tematically- starved state educational and other in- stitutions so that it was necessary for the last legis- lature to build them up. - - Second—The last legislature provided a generous settlement for retBrned North Dakota soldiers and Nerth Dakota is paying this bill by taxes, instead of by issuing bonds and leaving a heavy debt hang- ing over the heads of the people. . Third—The purchasing power of the dollar, as every one knows, has decreased to,one-half of what it was. The state’s money, in these times, goes only one-half as far as it did. Now for the figures to prove these facts. It has be®n said that while figures do not lie, liars often use figures. That has been true about many of the figures that have been put out in regard to North Dakota taxes. The figures that will be quoted in this article may be confirmed by writing to George E. Wallace, state tax commissioner, Bismarck, N. D. Mr. Wallace is the final authority upon North Da- kota taxes. He was appointed by a former. state administration and was continued in office by the farmer administration because of his complete familiarity with this difficult subject. NORTH DAKOTA IS GENEROUS TO RETURNED SERVICE MEN The following were the total state levies of North Dakota since the Nonpartisan league first became a factor in the politics of the state: 1915—$1,655,234 1916—$1,417,984 1917—$1,657,612 - 1918—$1,690,155 1919—$3,676,039 It will be noted that the only increase of any im- portance has been in the year 1919. The total state taxes of 1919 appear to be 117 per cent higher than the total state taxes of 1918. What is responsible for this increase? - i Let us look at the detailed levies for the two years to find out. In detail the state levies for 1918 and 1919 were as follows: * i Funds Levy 1918 Levy 1919 General ... $1,572,265 $2,694,179 Sinking ... 78,600 60,950 Interest ' 189,300 259,087 Soldiers’ relief ... none 761,873 ° Total ........... $1,690,155 $3,676,039 It will be seen at a glance that the levy in 1919 included more than three-quarters of a million dol- lars for soldiers’ relief. This is not a normal state i tax. It is, however, a charge that no enemy of the League has dared to attack. Tt represents the ex- pense of the best-planned law for the benefit of re- turned service men that has been enacted anywhere in the United States. . To compare the 1919 levy fairly with that of 1918 the amount of the soldiers’ relief levy must be de- : ducted. This leaves a levy of $2,914,166 for 1919, which represents an increase of $1,224,011 over the 1918 levy, or 72 per cent. Practically all of this increase, it will be noted by a further reference to the comparison of levies, is in the general fund. To determine what caused this increase in-the. general fund levy, we must go back to the appro- priations of the two sessions of the North Dakota legislature of 1919. The legislature appropriates all money for state purposes for a two-year term as the legislators be- lieve it will be needed. Later the state board of equalization meets, determines the total amount. that the legislature has appropriated and levies enough taxes to meet the appropriations that will be spent each year. = . The following table shows all appropria- tions made out of the general fund by the 1919 sessions of the North Dakota legislature, grouped under their respective headings, and the increases or decreases as compared to the appropriations of the legislature of 1917: = ] 5¢ Eg 3F ®Y ] or B S Ceie e =S 151 - Purpose of CRic Bg 20 28 appropriation < 5 s §°§ :8 '&9- - a5 3 384 4 39 Legislature ' ............. 2.0 $ 13,400 . .5 te courts ..... 8.0 _ 89,250 1.3 State departments 17.6 475,721 16.3 Education ......,....... 1904,745 41.3 899,673 31 Sf@@e institutions (non-ed) 1,528;207 21.7 886,347 . 30. Military ........... SR, 80,000 1.1 65,000* Contingency 115,000 1.6 90,000 3.1 Printing 82,600 5 1,892* State fairs 25,000 4 10,000* Bounties ... 165,000 2.2 95000 3.3 State industries ..« 485,000 6.2 485,000 14.9 Roads and miscellaneous. 162,627 2.3 43,681 1.5 Total ;i st it s $7,024,887 $2,900,98¢ *Decreased appropriations It can be seen at a glance that talk of the state industrial program being responsible for the increase in North Dakota taxes is pure “bunk.” On the face of the figures state industries general fund taxes in North Dakota. But the general fund taxes are only 70 per cent of the total state taxes. Therefore of every dollar of state taxes a little less than 4.4 per cent goes for state industries. : The state taxes in North Dakota this year “ constitute 14.5 per cent of the total taxes to be raised in the state. Therefore of every dollar cent. (633-1000. of 1 per cent, to be exact) goes-to state industries. The comparison of total taxes in North Da- kota, total taxes for state purposes and total taxes for state industries, is ‘indicated accu- rately by the diagram on this page. As a matter of fact, the expense of the state industries is much less than is indicated. When the industries were to be started there was little data to guide the legislators®as to the probable expense. Therefore appropria- tions were made large enough to cover any possible contingency. : For instance, $100,000 was appropriated for preliminary expenses for the Bank of North Dakota.. But it was necessary to use only a little more than $20,000 of this, aud the Bank of North Dakota, since it has been 8 ==This line represents the total taxes for all purposes in North Dakota in 1919, including state; county, city, township and school - district taxes: AR B ol his line represents the total state taxes in North Dakota in 1919, 14.5 per cent of the total taxes. et taxes in North Dakota in 1919 for state industries, 4.4 per cent of total state taxes and six-tenths of 1 per cent of total mm taxes for all purposes, PAGE FOUR take 6.2 cents of every. dollar raised for state: of total taxes raised, only three-fifths of 1 The bottom line represents the total state put in operation, has earned enough money to pay back this advance, so that there will be no charge upon the state whatever, Gl = The big increases in the North Dakota state ap- propriations, as any one-can see by a comparison of the figures, are in the items for education and state institutions. One reason for this is that in the years before the Nonpartisan league came into complete control in North Dakota the educational institutions, especially those for the benefit of the farmers, had been systematically starved. Build- ings were sadly in need of repairs, the best instrue- tors were leaving the state and something had to be done at once. The League legislature has pro- vided money for needed new buildings and- for in- creases in teachers’ salaries to meet the situation. IT COSTS MORE FOR THE STATE TO LIVE NOW, TOO The decreased purchasing power of the dollar ac- counts for the remainder of the increase for educa- tion and for the entire increase in the appropria- tions for state institutions. The expenses of state institutions are largely for subsistence of prisoners, .the insane, etc., and for the labor of employes. - As every one knows the costs of food and clothing have gone up 100 per cent or more in the last few years and labor costs, along many lines, have advanced nearly as much. A careful student of the facts would agree that under these conditions an increase of 21 per cent in the appropriations for state.insti- tutions and an increase of 41 per cent in the appro- priations-for education are less than might have been expected. As a matter of fact, these in- ereases, much less than increased costs, represent - the utmost economy in operation. In North Dakota the argument that the League program has been responsible for increased taxes - has been thoroughly exploded. Opponents of the % League, who a few weeks ago were jubilant in the belief that the cry of “increased taxes” would “kill the League,” now admit that they made their cam- paign of misrepresentation too early. The farmers already have had opportunity to learn the facts. The result has been just the opposite of what the League opposition hoped. Farmers have seen that the increase in state taxes, comparatively small, has been justified. ‘But they have found that in numerous counties county and township taxes have been raised out of all proportion to the needs. So instead of turning against the farmer state ‘officials elected by the League, they are turning against the anti-League local officials and preparing to put good Leaguers in their place. R S In this connection must be told the experience ‘of Representative John R. Maddock, a farmer legis- lator, who on the train recently was approached by a Twin Cities traveling man who bewailed the in- creased taxes which, he said, were forced upon the farmers by the League administration. Maddock didn’t let on that he was a legislator. » “Well,” he said, “I’m a member of the ‘township . board and we had to raise our levy a little. T sup- pose that’s responsible for part of the increase in taxes.” | 'Il‘lh'e traveling man agreed that this was probably right. : “And my neighbor is on the school board. 'They raised taxes to build a new schoolhouse. League isn’t responsible for that.” Again the traveling man had to agree. “And my county commissioner was telling me the other day that they had to raise county taxes. The League didn’t elect them.” 5 The traveling man had nothing to say to this.. - “And I saw in the paper the other day that the Leaf'l’le legislature had reduced state taxes 25 per cen _ The traveling man couldn’t hold himself any longer. ; : i “Why that don’t amount to anything,” he explod- ed. “That’s just political camouflage. Twenty-five per cent reduction in the state taxes is practically nothing at all}?. % : : “That s0?” returned Maddock.” “Well, when I went to school four times nothing was nothing, too. If the reduction doesn’t amount to anything, I guess the state taxes, before they were reduced, couldn’t have amounted to very much.” g So the el Lol s 5 7 B N O ) APy u < - <, A - A 35 . (oo Bl 2 N.\' 195 | I A P 3.? +a ,\v ; b 4 -5 »” "W 4.5 -2- B +3 e 1 % m e