The Bemidji daily pioneer. [volume] (Bemidji, Minn.) 1904-1971, 1905-01-04
STATE FINANCES.

The state auditor has presented his
report of the financial condition of the
state, to which your earnest attention
is called. His total estimate of the
revenue fund for 1905 is $4,609, ,169.4O
and the Estimated expenditures for the
same year $4,546, ,106.5O. For 1906 the
income is estimated at $4,570,000, with
expenditures at $4,044,000; and for
1907 the revenue is estimated at $4,-
745,000, with estimated expenditure of
,$4,379,000 The estimate for 1906 is
based on tax of 1 mill, yielding
revenue of $S00,000. For 1906 and
1907 he has based his estimate on a
tax levy of one-half mill, yielding
100000 and $425,000 per year respec-
lively. In his estimate of revenues
for 1906 and 1907 he has calculated
the income of railway taxes at per
cent, yielding a revenue of $2,500,O00
for 1906 and $2,600,000 for 1907. In
his estimated expenditures for the lat
ter two years no allowance is made for
buildings at the state institutions. You
will observe that this leaves very
close working margin unless the tax
levy is raised, a condition which should
be met with a great deal of care.
heartily concur in the suggestion Of
the state auditor that the appropria-
tiOns be kept within the estimated re-
ceipts, believing that the tax levy
should not be increased. We are con-
fronted with a new situation, which
requires your attention. The new cap
itol building, being larger and more
commOdious structure than the old,
requires a larger working force to care
for it. The old capitol building is still
the property Of the state and some
provision should be made for it's fu-
ture use and care.
According to the report of the audi
tor the permanent trust funds are in
a most gratifying condition and are
rapidly increasing.
Since the publication of the auditors
report the state debt has been de-
creased to the extent of 100000, there
now remaining but $S59,O0O of the un-
paid refundment bonds.
TAXATION.
The subject of taxation is always
of vital interest and of more direct
Importance to the people than any
with which you have to deal. Our pres
ent system is in many respects very
unsatisfactory. A large portion Of
property which is properly the sub
ject of taxation escapes this duty en-
tirely. The question of taxation was
very thoroughly discussed at the extra
session of the legislature in 1902 and,
although nothing tangible resulted
from that investigation, the public
mind was educated in some measure
to need of a change in our system
of taxation.
Under our present constitutional
limitations there is but little oppor-
tunity for a change in the situation.
All classes of property should GER
tainly bear just proportion of the
taxes for the raising of the public rev.
enue. would recommend the passage
OF a bill providing a constitutional
amendment giving greater latitude to
the Legislature in the regulation of our
tax system. believe partial solu-
ton Of this vexatious problem lies in
an income tax and especially in an in
come tax upon credits. To secure this
there must be an amendment to our
constitution.
The taxation of inheritances is a
matter which should be considered at
this session. Efforts have been made