The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1905-01-09
MIR. PurdY on Taxation.

Mr.. Lawson Purdy's address before
the business men Of Minneapolis and st.
Paul on Saturday night offered them
food for thought. His points as eluci
dated in his address were briefly:
First-That the tax provisions of the.
Minnesota constitution date back. 1.-THE
bill of rights Of 1918, that they ares
taken verbatim from the tax law Of
Ohio drawn in 1916, when conditions
of industry and property in Ohio were
primitive. -, ~. ...<
Second-That Minnesota cannot 90
very far in tax reform until constitu-
tional amendment has been adopted.
Third-That the state runs no risk in
liberalizing the constitution, as it could
not very well achieve worse tax sys.
tenn than it has now. @.. " -
Mr.. Purdy did not recommend that
Minnesota adopt a so-called "wide
open' constitution, that is, one in which
the whole question Of taxation is left
to the legislature without limitations.
He would substitute several para
graphs corresponding in number and po-
sition with the present paragraphs but
giving the legislature greater CONTROL .
For our immediate needs Mr.. Pur-
dy's suggestion is the creation of a tax
commission of three members whose
duty it should be to review the work
Of local assessors in an expert way. In
other states where a tax commission has
replaced the board of equalization, the
results have been favorable. Friction
between counties and between counties
and the state has been cut off, as the
tax commissioners, acting solely for the
state and without local prejudice or in
terest have been able to adjust taxation
and to really equalize. .....
Mr.. Purdy's suggestion of tax COM
mission is important in view of the
fact that direct taxes for state purposes
are going to continue. Notwith-
standing the antici pated increase in
state revenue from the new gross earn.
ings law, there will be small direct tax
for the state and state school and q
state university tax to pay. This
means that we must either remain I'm.
der the present grotesque system of
equalization or seek a better way and
there is no more favorable time to seek
a better way than when the facts in
regard to. the last state board OF
equalization, are fresh in the public
mind. .s- .,~ .s...:. -. 70. .-..v.. 4 -
! Mr.. Purdy also suggests a, plan where
by the necessity for equalization may
be entirely removed. BY this plan thu
amount required by the state is appor
toned to the several counties in pro
portion to the taxes raised for local i'm
provements in the various counties anl
the districts within each county. Thi!
plan has been approved by the New
York commission and by the New
York Chamber of Commerce. It ha
been adopted, practically, in Oregon.
The principal thing before the peopl
, OF Minnesota is, however, the creation
Of permanent tax commissions who's
} duties would be analogous to those 8
the state board Of equalization, bu
which would be performed from tn
standpoint Of tax experts who max
themselves familiar by personal inves
t1gatlon with the situation in all part
Of the state rather than that of loca
political experts. Next in order is tn
. putting forward of a constitutions
amendment.