The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1902-01-10

| nortance that the Cimmission feels JUS
| titled in commencing to the legislature
| and the tax commissioner the reported
bill becomes a law-its broadest consld-
GRAFTON.
| CHAPTER XIV.
| Constitutional Amendments.
| No fact is more firmly impressed upon
| the mind of the commission than the
necessity for an early amendment of ar
| ticle Of the constitution OF this state.
Since the adoption of the original con-
stitution, great changes and developments
have taken place in the industrial world.
Both the subjects and the objects of tax
! alton are, in many respects, >dlnerent
now from what they then were.
Following iHdustriously in the footsteps
of other states in the formulation OF It's
organic law, this state adopted the policy
of depriying the legislature OF powers
touching taxation which are essential to
| the natural growth and development OF
| revenue system. A state legislature is
! deemed to have plenary power upon all
subjects Of legislation save as 1t has been
| deprived thereof by constitutional restrlc-
| tions. ...
| Turning to the constitution of this state,
it is seen that until within quite recent
Fyears the legislature enjoyed no other
| power than that of imposing taxes upon
| ali classes of property not specified In
section 3. Public interests would un-
doubtedly be best guarded under con-
| stitutlon which divests a legislature of
the power of entering into contract with
| respect to taxation. The United States
supreme court has never rendered more
unpopular decision than when 1t held that
q state legislature may, unless restricted
by constitution, contract away the
| sovereign power Of taxation. That deci-
sion has been adhered to in SO many
cases that it is not now reasonable to ex-
pect that it will ever be overruled by
that court. ..-.' g.
Every tax system should rest upon the
rules of uniformity and equality, and
| legislature should not, therefore, be vested
with authority to violate them. There
are a few classes Of property which from
their nature should, in the public opinion
of to-day, be wholly exempt from taxa
| ton; and the majority of states includ-
1 ing our own, have expressly provided fof
! their exemption. Such are cemeteries
! property owned by public authority or
employed for educational Or charitable
purposes, and property devoted to relig-
ious worship. Conceding such view to be
supported by the weight of public opinion,
| the dissentients are very numerous and
are able to advance strong grounds in
their support. Treated as an original
! proposition, it may we'll be questioned
whether any class of property, save thai
devoted strictly to public use, shout BIS
exempt Abuses barnicle themselves to
the exemption of every other class VI
property. In some instances they ar
livery great and materially increase tho
burdens borne by other classes. These
offend both the letter and the spirit of
the constitution. Experience teaches that
in taxation when the law gives an inch
an ell is taken. A more wholesome pub
lie sentiment would perhaps be engendered
if exemptions were restricted wholly to
public property.
! Whether the constitution in respect to
exemptions should go further than to Sc
cure the absolute exemption OF public
property is an important question when
| ever an amendment of the constitution
respecting taxation is proposed. In GER
tain other states the legislature is, as we
have SEEN left free to act upon the sub
iect While evils may have attended the
i exercise Of such legislative powers in
those states, we are not aware that they
have been so general or so marked as to
argue against the wisdom of leaving the
power with the legislature. There is
little danger that any legislature Of this
state will ever be disposed to exempt any
i class of property unless its action be
fairly sustained by public opinion. So
long as the constitution remains prohibit
tive, as at present, it tends to repress dis
cussion upon the subject, both within the
legislature and among our voting popula-
ton.
/ but Whatever Iudy w Sdlu Luz VI dSdAuSI
a constitutional enumeration Of exempt
classes of property, it may be confidently:
urged that when the cOnstitut ion seeks to
impose further restrictions upon the legis-
lative power, more evil than good will in
the end result therefrom. "
The raising of revenues is. vital to the
life of a state and must always be pro-
vided for. At no time in modern history
has the thought of students Of economic
subjects been as earnestly directed to the
subject of taxation as at present. The
Judgment is universal that the existing
systems of taxation. wherever found in
this country, are fraught with many UNI
necessarily harsh and unjust features.
Economists are at present, and will long
continue, in sharp conflict as to what
constitutes the proper policy of state in
| raising revenues 1t must necessarily re-
suit that much experimental legislation
will be enacted within the next twenty
; five or fifty years. The legislature of this
state should, therefore, be left unham-
} pered in dealing with the subject accord
ing to it's wisdom, save as restrained in
the manner above expressed.
, Without entering into an elaborate dis
cussion of the subject, it may here be
properly suggested that we are as yet far
from the last act of legislation upon any
t one of the following subjects:
1.-The sources of revenue for state
, purposes and the manner of raising such
| revenues.
{ 2.-The appropriate method for the tax
alton of public service corporations, en-
, bracing transportation, gas, heat, light,
, power and other companies.
, 3.-The appropriate method of taxing
! mining companies.
4.-The measure Of local option which
should be permitted to counties and mu-
: inequalities in the raising of revenue for
> local purposes.
5.-The taxation Of incomes.
!, Reference has elsewhere been made in
this report to the systems of taxation
!, adopted in New England and British col
: onies. The best thought of the country
seems to regard with favor such policy
:, and it may be that within briefer pc
! riod than Is now contemplated wisdom
: will require the adoption by the people
q of this state Of such policy or of one
which shall embody its salient efatures.
The vast wealth which is being rapidly
\ concentrated in few hands and the appro-
$ priation of public utilities by its owners
calls for legislation which will impose
q upon such proprietors, taxation common
! surate with the value Of the exclusive
: privileges enjoyed by them 1t should be
|, left to large extent to the political sub
= divisions of the state TO determine for
t themselves the objects for which revenue
: lis to be raised therein and the subjects
q frnna = Il q IN hc snyanfnd The n.