The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1902-02-14

careful consideration. Yet, fifteen times
in their report accompanying their pro-
posed bill they complain of the restric-
lions of the constitution. On page 8 Of
their report they say:
Save for the limitations imposed by
the above and other provisions of the
constitution the bill proposed by the COM
mission would have been materially mod
flied so far as it provides for the sub
jects of taxation. Its views in this re-
spect are elsewhere stated in the report.
The provision is too unyielding and re-
stricts the legislature too closely to per-
NIT of needed reformation both as to
subjects and methods. 1t permits neither
the taxation of incomes nor occupations,
and prevents the adoption Of forms Of
taxation inapportionate to the subject
taxed"
Again the commission says on page 81
of its report:
''In conclusion. the amendment of the
tax provision of the constitution, for the
reasons urged in this report, should be
early effected. In their present form
they are an insuperable obstacle to prop
er legislation"
New Code Is Not just.
1t is, therefore, admitted by the franz
ers Of the proposed tax code that 1t
does not present system that is just
and equitable, one that corrects existing
evils, nor one that is in harmony with
modern thought and modern ideas IN the
subject Of taxation.
Conceding that new take code IS de-
sirable, is it wise to enact a new system
CT taxation at this time which all ADMIT
is SO defective? Would it be good judg-
raent on the part Of the legislature at
this time to enact law, the fundamental
principles of which are to be changed If
the proposed amendments to the conStl-
tuition are adopted by the people? Can
we afford to disturb existing conditions
il, all lines of business by enacting a
stringent and drastic tax law which we
admit is defective and which must be
changed again as soon as the constltu-
ton will permit? If we enact the pro-
posed tax code it will necessitate large
expenditure of money by the state and
each of the several counties; salaries Of
county auditors and county treasures
which are now based on the assessed
valuation Of the property in their re-
spectiVe counties will be increased if this
bill has the effect of raising the aggre-
gate of the assessed valuation; new
forms of blanks and books for county
auditors and county treaSurerS will be
necessary; new duties will be imposed on
the several county officers, and new Of
ticerS are provided for, and doubtless all
will be changed again when new law
is made possible by constitutional
amendments. The aggregate expense 10
the counties will be enormous, and the
expense will be duplicated When the
proposed change following the constitu-
tional amendments is made.
Long Legal Delay.
Then again, a new law will be without
judicial Interpretation. The different in
terests affected will test in the courts the
several provisions of the code; the law
pie by reason Of the increased litigauOn;
conditions will be disturbed and inset
tied until many provisions of the l3W
are interpreted by the courts, and be-
fore the law can become settled by jul
dicial interpretations it is proposed to
change the whole system again under an
amended constitution.
Insmy Judgment it is not wise to have
two changes in our system of taxation,
with all the expense and uncertainty and
Reorganization OF business conditions ae-
companying each change.
We Should not adopt a new system Of
taxation until the constitution will permit
Of one for which we shall not have to
apologize. When we adopt a tax code
1t should be the very best; it should be a
permanent code. and it should be in har-
mOny with modern ideas on the subject
of taxation.
To permit of such a code it is conceded
that it is necessary to amend the consti-
tuition.
I believe that the logical, practical and
buSlness-like course for the Legislature
to pursue is to submit to the people a
constitutional amendment that will re-
move the limitations that are hindrance
TO desired legislation, and then after the
adoption of such a constitutional amend
ment tax law can be enacted by sub
D1ONluG
a more desirable and a permanent sys-
tenn of taxation. Pending such perma-
nent legislation laws can be passed at
this session of the legislature providing
for tax on public service corporations
so as to subject their valuable fran
chiseS to taxation, and a tax on foreign
corporations so as to place them on an
equality with domestic corporations.
Would Submit Amendment.
believe that if this legislature will
provide for submitting to the people a
proper constitutional amendment, and
Will enact laws for the taxation of pub
lie corporations and foreign corporations
the state will be amply compensated for
the expense Of converting the legislature
IN extra session, and we will have made
step in the right direction.
1t IS now proposed to submit this plan
to the legislature in the following man
Firstly amending the constitution so
as to make needed reform possible
secondly so amending section 1880 of
the General Statutes of 1894 as to provide
for the taxation of franchises.
Ihlrd-By enacting a law for the taxa
ton of foreign corporations doing bust
ness in this state SO that they will have
no aavantage over domestic corporations
nave already introduced bills for the
purpose of carrying out this plan
Inc amendment to the constitution
mat nave proposed makes 1t possible
Tor the legislature TO pass a law pro-
viding for an income tax, and further
provides that upon enacting an incom q
tax law the legislature may exempt from
i5Xat1on any one or more of the several
Grasses OF property. 1t may, under this
constitutional amendment exemnt mort
cages and oher forms of credits: and it
may, II 1t is deemed wise substitute an
income tax for any and all forms of per-
sonar property taxation. The tax COM
mission has expressed it's regret that our
constitution does not permit an income
TAX. Ihere is a growing belief not only
III our own state, but all over the coun-
Try, that an income tax would be pro-
ductlVe of better results than our present
system OF taxing personal property, in
cludlng credits, and that it would i'm
pose the tax on those that could best
afford it, and would be more lust and
equitable IN many ways than any system
OF personal property taxation that has
ever been devised. [ notice that the in
QuStrlal commission that was apnoin+ed
by congress some years ago has iI1e+
taaoe It's report, In which it recommends
tEat the several states raise their rev
enue principally from an income tax and
tax on corporations and franchises.
Taxation of Mortgages.
The taxation of mortgages and cred
ItS IS lIlegaI unjust, productive of double
taXatlon, and raises the rate of interest
10 pc PAID by the borrower by as much
as the tax on the mortgage The COM
mlslen, as do all of us realize the in
1ustlce OF taxing credits, vet the consti-
tuition demands it, and any law that does
not provide for the taxation of credits
is unconstitutional. This proposed amend
menu TO the constitution makes it posi-
Die TO exempt credits from taxation IF
removes many limitations complained Of
by the tax commission, and gives great
er freedom of action to the legislature
IN selecting the proper subjects and
methods of taxation
tow !