I rher« are other Oregon county asses­ for the privilege of doing business. Mercantile and manufacturing cor- them pay the most taxes, Which sors who enjoy similar confidence. porations find it hard to see why they What tuts forced this excis«, method means the excise tax method, And Foregoing are some of the hurdka should be dragged under an excise tax is the bank tax situation. Under fed­ there you are. plan merely for the sake of capturing which must be surmounted before All that can be said for this excise eral law, the only method left where­ proposal is that it has sufficient a mite of revenue from taxing banks. anything that resembles a state in- To them it looks like being forced to come tax proposal can be accepted by, national banks can be substantial­ merit to demand careful consideration swallow a camel just for the sake of without bitter resistance by business ly taxed.is the excise method, for in the light of the future as well as in interest. And when the hurdles otherwise their income from tax-ex­ the light of its nuisance and expense. making a neighbor swallow a gnat. To the mercantile and manufactur­ ire pasted, there remain many minor empt securities could not be used as Its adoption may be necessary as a If adopted, it may ing interests, th's proposed excise tax matters to be adjusted or matters an element in adjudging the value of choice of evils. privilege of doing business. bring with it some material ad­ looks just like an income tax. The which may seem minor to those who their fine distinction betwrn a tax “on" net do not have to operate a particular ■States ure not permitted to levy any vantages to business, especially if it income and a tax "measured by" net business under a tax law which affects personal property tax whatsoever on prevents our periodic tax upheavals income is one which is discerned more hat particular business materially. national banks, so they will escape and if it results in uniform tax meth­ Business might accept the principle taxation altogether (except on their od and reciprocity on the Coast. readily by the attorney than by the We will go this far: We will say estate, which is taxed as other, business man who has to operate un­ hat the proposed excise tax is a estate is taxed) unless some that unless a tax plan sanely framed der and pay the tax. Income tax ound method, and still And it un­ having been rejected repeatedly as an M’ceptabJr because of sohie detail of plan is devised that will fit within is adopted, we may have to operate ts application. the limitations set by federal law. dnder one written by fanatics, for so unnecessary infliction upon and com It may be remembered that six Several options are available, but the long as taxophobia is epidemic in Or­ petltive disadvantage to Oregon busi­ ness. why put an excise mask on it years ugo, in 1922, Oregon business excise plan is the only one which will egon there is danger of having to swallow a remedy that is worse than vas complacent towards state income yield much revenue. and marry it? The catch in the bank tax situation the disease.—Oregon Voter. Substantial reasons will have to be tax as then understood, but when the advanced before our mercantile and legislature got through botching the is that to apply an excise or any sim- Business ilar .... tax — to ~ national ...w.... banks, » >. nsen- it is essen- manufacturing corporations will feel aw, it was unacceptable. When making fudge, stir in half a that this proposed excise tax should xnows that, no matter how perfect a tial that financial, mercantile, manu- pound or marshmellows before turn­ plan may be proposed to a legislature,1 facturing and other business corpora- be accepted without resistance. ing it into the tin to cool. They melt If this excise tax is substantially by the time it gets through it may be tions be likewise drawn into the same immediately and make the candy a mess. Business does not care to net. The rate applied to banks may identical in structure, rates, offsets »moth and creamy , and report requirement as that under be caught again in a tax trap if it can not be in excess of that applied to oth- which California business will operate svoid it, and it will be suspicious of *r financial corporations in competi- i tion with banks, and may not exceed in competition with Oregon business, What Is this exeise tax, anyway? ^e highest rate applied to mercan- that fact would consttute a valid rea­ As now proposed in Oregon, it is a ti,e’ manufacturing and other busi- son for considering it in Oregon, pro­ form of taxation modeled upon New corporations. vided it is necessary to consider it. As poroposed, the plan under con- If it is necessary to provide addition­ York's plan and adapted to Pacific It is a tax on »(deration in California and Oregon al revenue for the state, a tax plan the Coast conditions. corporations for the privilege of do- meets this condition. It brings banks same as used in California would be preferable to a different tax plan ing business, and the amount of tax, and financial, mercantile, and other its whereby Orvgon business might be is measured by net income rather than I business corporations within It applies the same rate to placed at a competitive disadvantage by capital stock, as is the case with scope. the existing corporation license tax all, but takes into consideration the with California. In New York, the tax property tax paid by other corpora- If adoption of this excise tax pro­ in Oregon. posal would cure the agitation for entirely replaces the personal proper- tion», allowing that tax to be ap- | On the Pa­ plied as a ninety per cent, offset on > state income tax, without placing Or­ ty tax on corporations. What is especially | ■ egon business at a competitive dis­ cific coast, this replacement cannot be the excise tax. advantage with California, that would accomplished, tor the very practical resented by mercantile and inanufac- ■ be a substantial inducement for its reason that the revenue derived from turing corporations in this application consideration, as our income tax agi- an excise tax at reasonable rates of the tax is that the heavy personal tation in Oregon is regarded by Ore­ would not be sufficient to recapture property tax they now pay, with the ! J revenue lost by abolishing the per­ banks paying no personal property ■ ■ gon business as a serious setback to the ' sonal property tax as now paid by tax whatsoever, does not exempt them I ■ pronperlty in this state. For that reason, the entirely from the application of the [ ■ If by adopting the California plan, corporations. rcaonable security can be felt that the plan has been adapted so that person­ new tax. Yet so far no way has [ • plan will not be changed in essentials al property tax may be used as a 90% been devised under the federal law r except as California changes it, busi­ offset against the excise tax, but the whereby the necessity for bringing - । ness would feel more confidence than entire amount of personal property mercantile and manufacturing corpor- | f it would feel under a taxation *ys- tax would have to be paid, no matter ations within the operation of the tax | ■ tem which is at the mercy of political how much it might exceed the offset. if it is to be paid by banks, can be changes regardless of competitive dis­ At the rate proposed in California and avoided. The only alternative is to | ! Oregon, 4% of net income from ail let the banks go free. advantage. If there is reasonable prospect that sources, with 90% offset, the tax It would be very much to the ad-, ■ Washington will adopt a similar plan, would amount to 90% of 4%, or .4% vantage of the mercantile and manu- J instead of holding out separately by (four-tenths of one per cent), for factoring corporations to let the 1 herself for competitive tax advantage those corporations whose personal banks go tax free, rather than be over Oregon, there would be more property tax equaled or exceeded 90% snagged into the excise tax bramble { . comfort in the prospect. Uniformity of the 4%. for the sake of getting $100.000 or | of tax method, with reciprocity, up Measured by net income from all $160,000 a year out of the banks, and down the Pacific coast, would sources, the tax would cover income That is, it would be to their ad- place business on a tax parity in all from tax-exempt securities as well as vantage, unless letting the bank* go three states, and this would be re­ from other sources. That is the fun- tax free would precipitate a political garded as more desirable than going (lamentai legal difference between an situation which might result in elect- it alone. "excise tax measured by net income" , ing another Pierce for governor or in If there is reasonable assurance that and a tax "on net income.” No tax 1 fastening come other plague upon the i our state government can administer may be levied "on" net income fiom state. Scenting this peril, as well as , n tax in s manner that commands con­ tax-exempt securities, but a tax desiring to pay a reasonable tax. tax, the « fidence of those who pay the tax. "measured by” net income from all banks are clamoring to be taxed by £ there would be less apprehension of 1 sources may be levied upon a business whatever lawful method will rc.ake difficulty in operating under a state- administered tax. It is putting it mildly to say that today business has little confidence in state tax adminis­ tration, full confidence having been forfeited by political use of income lax return information by one or two EXCLUSIVELY OPTICAL elective state officials who had access “Il here the fountain is. c innville ore to income tax returns, by selecting prominent victims for intensive ap­ plication of the income tax squeeze, _ and by the "blue blank” episode. No k such lack of confidence in state tax I M administration exists m California, S S MEATS THAT MEET YOUR REQUIREMENTS New York, Massachusetts and some rs X other tatek. Neither is there any ■ ■ Everything in season ■ such lick of confidence in many of our s We are at your service is county assessors. The Multnomah H county tax administration, for in­ M X M stance, has been such for many years X X « PHONE RED 31 DAYTON. ORE. H that it commands taxpayer confidence. Á Radio For Christmas You are making plans for your family and friends. The presents that last snd sre useful are the ones bust remembered and enjoyed. In your plsnning electric gifts will be received with the highest sp- preciation. The radio. That marvel of the century. What could give greater satisfaction to the family group. All of the household can enjoy a gift of the radio. Kadiola, Kolster, Stewart-Warner, Atwater-Kent, we have all the best for your selection. 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