The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1904-10-15
State and Local Taxes,
the Editor of The Journal,

To the Editor of The Journal
Your editorial Of Oct. list on unjust tax
alton very forcibly presents the objection
to the plan Of equalizing assessed values
by state board. This equalization is al
ways unjust and is generally severely
criticized even by those in whose favor
discrimination is made. They are never
ready to admit that they have received
more than is their due, or even as much
as is their due.
I realize that the constitution of Min
nesota contains foolish restraints upon the
power of the legislature, but the constitu-
ton of the state of Oregon is almost as
bad, and Oregon has solved this problem
of equalization on the general lines pro-
posed by the New York Tax Reform as
ISOLATION, and no constitutional objection
has been raised. By this plan the amount
OF state tax each county shall pay is de-
termined by the proportion Of local rev.
enue raised by that county and all the
taxing districts within it as compared
with the local revenue raised turnout the
state.
This plan was submitted to the tax
commission of Minnesota, which reported
in 1901 In that report the commission
discussed the proper basis whereby the
amount of revenue for state purposes to
be contributed by given county may. be
ascertained. and said: perhaps the least
Objectionable one is that which received
the Endorsement Of the chamber Of COM
merce of New York and known as the
Purdy method. They said further: Gun
doubtedly such a measure would give rise
to a spirit of greater economy in local
government, inasmuch as the proportion
ate amount of the state revenue to be
paid by a given county would be deter
mined by the ratio of it's GROSS revenue
as above defined, to the aggregate amount
of revenue raised in all the subdivisions
of the state.'' ~. !, sS v
While of course it is highly desirable
that the restraints upon the power of the
legislature contained in the constitution Of
Minnesota should be removed as soon as
possible, it is quite probable that this plan
of apportioning state taxes can be adopted
at once to the great advantage Of the
state. -.>f Lawson Purdy.
Mr.. Purdy is the secretary of the
New York Tax Reform association and
a recognized authority on taxation. AS
he suggests, the apportionment of state
taxes among counties according to the
amount Of local revenue raised by each
county would undoubtedly be a fairer
distribution Of state taxes, and at the
same time make for economy both in
state and local taxes. The fact, how
ever, that large part of the state tax
| is paid by public service corporations
on. the gross earnings tax plan makes
the state tax, LEVIED direct, compare
lively small. For instance, in Henne-
pin county only about 8 per cent Of
the tax levied is for state purposes,
and while reduction Of the local reve-
nues would have tendency to reduce
the amount paid by this county to the
state, the effect upon the total amount
| Of taxes levied would be so small as
not to exert a very great influence to-
ward economy in local expenditures
and the consequent reduction Of the
state tax. I
In the proceedings of the recent
meeting Of the state board Of equaliza-
tion the injustice complained of by
local interests is the imposing of an
unfair burden upon those particular in
terests, not. only in the matter Of state
| taxation. but in the matter Of local