The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1902-03-11
A LONG STEP FORWARD

A LONG STEP FORWARD
The legislature which is now finally
in extra session to consider tax code
and constitutional amendments designed
to lay the foundation of a new system OF
taxation. $50 .rs s. a
1t adjourns after rejecting the tax code,
though adopting fragment OF 1t, and
passing constitutional amendments that
are not those advocated by the tax COM
mission. = 49,. -
These two things are the net result
OF the session from the viewpoint Of tax
ation-the Inheritance tax law being OF
minor Importance; and the greatest of
these are the amendments if the legisla-
lures labors shall find fruition in their
adoption by the people.
The constitutional amendments are, in
effect, curious compromise The house
favored the broad method Of amendment
the method of procedure by which restric-
lions are removed. The senate favored
the narrow method-by which the old re-
strictions are replaced with new ones of
broader scope. The former Is the true
method OF amendment. But the result of
the attrition between the adherents Of
the broad and narrow amendments from
the first days Of the session to the last
has been to give us:
Broad amendments arrived at by the
narrow process.
The latitude given by the amendments
as finally adopted is not so great as the
house plan or the original commission
plan would have given, but it Is ire
mendous extension of the taxing power
of the legislature. Since the first report
of the conference committee the amend
ments have been somewhat liberalized. ALI
personal property yielding an income may
now be exempted from direct taxation
and a graduated income tax is optional
ing real estate is left as at present, ex-
cept that, in common with personal prop
erty, it is no longer mandatory that it
shall be taxed at it's ''full cash value"
This exception is an advance toward
legislative and administrative honesty,
and takes the premium off perjury. Local
option is granted in modified form, con-
tingent upon the coming Of a time when
it shall no longer be necessary to levy a
tax for state purposes.
The amendments leave the legislature
practically free to tax the public service
corporations as it pleases, 80 many OPP
tons does 1t have. 1t may provide for
levying franchise, a real estate and a
personal property tax on such corpora
tions; or for the tax on the franchise
only it may substitute a gross earnings
tax, or the gross earnings tax may be
substituted for the personal property
and franchise tax. In any event the real
estate must be taxed, but this is not a
serious Impairment of the broad powers
given by narrow method.
In view of the breadth finally reached
and especially in view of the options CIV
en- the legislature as to the taxation of
public service corporations, the foolish
talk about preferring the narrow to the
broad amendments because the latter
would give the legislature a splendid OPP
portunity for "hold-up'' and demagogic
legislation Is more absurd than ever. The
broadest possible amendments could hard
ly add anything to the opportunities pre-
scented under the amendments adopted.
Looking back to the narrow amend
ments at first proposed by those who were
really at heart opposed to any amend
ments of any consequence and comparing
them with the broad amendments arrived
at through the restrictive process. T b e
j u feels that the fight for broad
amendments has not been in vain. The
legislature could have given us something
much simpler, much better, and more
briefly, but, after all, it has, through a
bungl1ng process, given us the founda-
ton Of a modern system of taxation.
Now ito get the people to adopt the
amendments! We have no doubt that
determined fight will be made against
them, and we do not purpose ito let our
adverse criticisms of the legislatures
method of dealing with the subject of
amendments stand in the way of an
earnest advocacy Of their adoption.
One thing more is to be said about the
session: 1t has been the means of bring
Ing about one of the most valuable and in
structive discussions of public questions
that the state Of Minnesota has ever had.
We went into the tax question lightly
gaily and inconsiderately year ago, and
we have now emerged from one phase of
Its consideration serious, studious and
with the rudiments of learning regarding
taxation and its incidence. Adoption of
the amendments will make lustrous the
name Of the legislature; their defeat
cannot rob the legislature of having done
about as well as could be expected of a
body Of lawmakers dealing with such a
weighty and far-reaching problem, with
80 much radicalism pulling one way and
so much conservatism pulling the other.
The Commercial Club has taken up 8
promising public enterprise in deciding
to cooperate with the Union mission in
the creation of Mills hotel in Mime
apolis.