The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1902-10-03
MINNESOTA'S
IMPORTANT PROBLEM
Constitutional Obstacles Must Be Considered by the
People at the Coming Election.


practical man of business and the
theorist gave their views on taxa
ton. From all this mass of testi-
mony the members of the house and
senate and through the newspapers
reports, the state at large, secured a
great amount of information in re-
gard to the subject of taxation and
surprising interest was aroused in
the subject Anything as to taxa
ton was read carefully and eagerly
and still is.
The immediate result of all this
process of education was an amend
ment to the constitution which is to
be voted upon by the people Novem-
Der 4th. 1t certainly is creditabIe to
the legislature that this amendment
was treated purely as BUSINESS meas
ure. At no time in either house or
senate was the vote in any sense di-
vided on party lines, and the final
passage of the amendment was by a
practically unanimous vote in both
houses. There was but one vote
against it in the senate and but three
in the house. Such unanimity, con-
sidering the subject, is remarkable
and is the strongest kind of testi-
mony as to the excellence of the
amendment.
1t is of interest to consider this
amendment in connection with the
tax commissions report, which is one
of the most important state docu-
ments ever submitted to a Minnesota
Legislature. In framing the amend
ment which will be voted upon at
this election a special regard was evil
IDENTIFY paid to the suggestions in the
report. For instance, the report con-
slders quite eXhaustively the subject
of the taxation of mortgages and says
that the present constitution made it
impossible to handle the subject as
they thought wise. That the taxa
ton of mortgages is double taxation,
that, low rates of interest on mort
gage loans can never exist when the
loan itself is taxed" and that the re-
suit of such taxation is either evasion
or an increased rate of interest In
Minnesota the result is a taking adj
vantage of this system of taxation,
both to keep up the rate and at the
same time evade taxation, and the
amendment makes it possible to cure
this evil by recording fee, or light
uniform tax on all mortgages when
recorded.
Again the report says. mo marked
reform in the taxation of personal
property can be effected until the leg
islature is afforded greater freedom
of action in the matter of legislation
upon the subject" This is clearly
along the line of the modern methods
to leave the legislature SO far as pos
sible free to fix a system of taxation
subject only to public opinion. The
danger in going too far in this di-
rection has been referred to, and the
amendment, as it goes to the people,
is considered by the tax student as on
the whole wise compromise in this
regard. 1t does not bind down the
Legislature too closely, nor limit it's
powers too narrowly. 1t rather marks
out course by suggestion than by set
limitations. 1t says rather what may
be done than what can't be done, and
gives as a rule an alternative in meth
cd. The exemptions also, are not wide
being OH Y schools, burial-grounds,
public hospitals and libraries, col
leges, charities and church property
when used for religious purposes, and
public property. These all, save a
very few. will be conceded should be
free from taxation as none are profit
bearing and they are strictly for the
public good. Also the limit to which
the personal property of each indi-
vidual may be exempt is increased to
$500, but only one member of fami-
ly can take advantage of this.
In the matter of an income tax
the commissions report says: CIV
cry system of taxation is deficient
which does not provide for a reason
able income tax. Minnesota would
take a proud step forward by wholly
abrogating tax on credits and
adopting progressive income tax"
Later it quite fully discusses the sub
ject and in conclusion again says:
"While it is not permissible to i'm
pose an income tax under the present
constitution the subject is too i'm
portant to be disregarded in the de-
alterations of the commission or
omitted from this report 1t is due
the legislature and the people of the
state that they be advised of the
views of the commission on the sub
iect.' On no branch of the subject of
taxation has public opinion changed
more here in America than on this.
Where it was formerly looked upon
as justifiable only as last resort as
war measure, it is now generally
approved. Now, even the wealthy,
while naturally opposed in the main
to an income tax, admit it's justice
and that the money product of a
mans brain are just as properly sub
ject to taxation as the product of the
labor Of his hands. The proposed
amendment permits an income tax if
the people demand it and puts Mime
sofa in this regard at the front of
progressive states in taxation. But
it does not make this form of taxa
ton obligatory, but leaves the legis-
ture to say if personal property of
any class; credits, stocks, bonds or
tangible personally shall be taxed on
the income or on value
Inheritances is another kind of es-
tate that has never been successfully
reached here, though in the states
furtherest in advance in taxation
matters, estates which come through
inheritance are taxed when they pass
through probate. Such an estate is
one that comes not through our own
effort but by the accident of birth,
and as the public is at expense in
each county of maintaining a sepa-
rate office for the protection of such
oro,,arfu ond Of tho ,iobtc Of bai,,c