The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1902-10-10
Taxation Reform.

Four amendments to the Minnesota
constitution will be submitted to the peo-
pie at the approaching election. One OF
these-that which increases the rate OF
railway gross earnings taxation from 8 10
per cent--was discussed in T n > r
nal yesterday. Next in Importance to
that, and some would say Of greater I'M
portance, though it lacks the promise OF
immediate and substantial good. which
the other holds out, is the amendment
greatly charging the powers of the legls-
lature in the levying Of taxes. This
amendment was the final product OF the
special session Of the legislature, called
last winter to deal with the pressing ques-
ton Of tax reform.
The tax commission, it will be remem-
bered submitted to that legislative ses-
sion a tax code, in harmony with the con-
stitution as it stands, and a proposed con-
stttutional amendment giving the leglsla-
ture plenary powers in taxation. The
code was rejected, but the legislature
passed a constitutional amendment OF It's
own, greatly broadening the scope OF per-
,missive legislative action, but falling Tar
short of the sweeping Recommendation
of the commission. Those who opposed
the code signifed satisfaction with the
amendments If they were sincere there
will be no opposition to the adoption OF
this important reform. 1t will depend
wholly upon the voters taking the trouble
to vote.
This amendment, if adopted, will au-
thorize the Legislature to levy and collect
a tax upon all franchises granted by pup
lie authority in addition to the tax on the
holding company's real and personal prop
erty; or, in lieu of such franchise tax
only or in lieu Of a tax on the franchise
and the personal property, tax may be
imposed upon the gross earnings or the
person or corporation enjoying the fran
chise. The amendment also authorizes
transfer tax OF not to exceed per cent
on the estate Of decedents; a registry
tax upon real estate mortgages, In lieu
of all taxes upon the debt secured there
by and an income tax.
The franchise and income tax provisions
are the most Important The former pro-
vides a modern method of making public
service corporations enjoying public fran
chses or monopoies stand a fair share OF
taxation. The later provides method OF
fairly taxing personal property and the in
comes Of men who now escape taxation
almost altogether.
The income taxation clause provides for
a levy of not to exceed 10 per cent on
incomes from credits owned by persons or
corporations upon incomes arising from
all personal properties, and upon
the incomes of persons and cor
porations, above the sum of $1,000 a
year, not arising from credits or personal
property or from property otherwise
taxed. The latter clause is aimed at per-
sons enjoying salaries above $1,000. Many
of these, especially if they are unmarried
men, may be receiving generous salaries
and yet have no taxable property. They
receive the benefits of government with
out paying, and are yet we'll able to pay
They constitute glaring exception to the
good rule that taxation should be accord
ing to ability to pay. The maximum sal
airy tax is >>ut at per cent. A man hav-
ing a salary of $1,000 would be taxed 81
at InlS rate, Out III pIdCIlCe Ille IdlS WoulS
be less. The ordinary wage Garner anC
most salaried persons would escape this
j. tax altogether. The same amendment
raises the personal property exemption
from 500 to $500. AS the latter sum will
cover all the personal property Of mos
men earning less }than'$1 900 a year, thi:
class will be practically free from taxa
ton. This portion of the Amendment
should bring it a great many votes.
1t must not be forgotten that that the
amendment Is permissive, not mandatory
Any change In the system of taxation
after it's adoption, will depend upon the
legislature which will doubtless proceed
conservatively. But in view Of the in,
CAPABILITIES Of taxation at present 1t will
prove wisdom on the part Of the people
to give the legislature latitude for reform
ing the present system.