Willmar tribune. [volume] (Willmar, Minn.) 1895-1931, 1902-10-08

Of the taxation of mortgages and says
that the present constitution made it
| impossible to handle the subject al
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. "No marked
reform in the taxation of personal
property can be effected until the leg
lslature 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
slble free to fix a system of taxation
subject only to public opinion. The
danger in going too far in this d.
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. It. does not bind down the
legislature too closely, nor limit its
powers too narrowly. It rather marks
out course by suggestion than by set
limitations. 1t says rather what NAV
be done than what can't be done, and
gives as rule an alternative in meth
cd. The exemptions also, are not wide
being only 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-
~ can take advantage of this.
In the matter of an income tax
the commissions report says: 'Ev-
cry system of taxation is deficient
which does not provide for a reason
| able income tax. Minnesota would
take a proud step fol ward by wholly
abrogating tax on credits and
Later it quite fully discusses the sub
ject and in conculsi ion again says:
''While it is not permissible to i'm
pose an income tax u der 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. It is due
the legislature and the people of the
state that they be advised of the
views of the commission on the SUBJ
ject." 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 a last resort as
a 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 SUBJ
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.
lnheritaRces 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
property and of the rights of heirs,
it is but considered just that at leas4
the largest states should pay spc.
clal tax for such protection. This Is
recommended in the report and pro-
vided for in the amendment.
| The report is exhaustive in it's con-
sideration of the taxation of fran
chise companies. It points out that
the tangible property of public
franchise company often does not be-
gin to represent the actual value of
the comPany's property. That with
street railway, gas, electric lighting,
water, telephone and such companies
the greater value may be in the fran
chise itself. There are two methods
OF reaching such companies. At pres
ent only their tangible property, such
as cars, tracks, poles, wires, plants,
machinery, real estate, etc., are tax
ed, but the amendment permits the
reaching of their other property by
either of two ways: By getting at
the actual value of the franchise,
which is the right the law gives such
a company to do business, or by a
gross earnings tax: The latter is sim
ply an income tax applied to such cor
Porations, and is the same method
that is now used in taxing steam rail-
ways.
Other advanced stands taken in this
amendment are also along lines pro-
posed by the commission: For in
stance again, the report says: pub
lie Interests void undoubtedly be best
guarded under constitution which
divests a legislature of the power of
entering into contract with respect
to taxation. Every tax system should
rest upon the rules of uniformity and
equality and legislature should not
therefore be vested with authority to
violate them" Along these lines the
amendment first of all specifically
prohibits the surrender suspending or
contracting away of the power of leg
'islation. This makes it impossible to
fix a form of taxation for corpora
'tions, or for any other class of per-
sons, or property, that future legis-
lature could not change. It provides