The Minneapolis journal., 1906-07-13
ATTORNEY GENERAL
URGES TAX REFORM
OUTLINE OF HIS OPINION GIVEN
IN LETTER.
States Legal Authority Takes up OBJ
jections Made to "Wide Open'' Tax
Amendment to Constitution and
Shows that General Public Has Much
to Gain from Adoption.

Edward 7. Young, attorney general,
is strongly in favor of the adoption Of
the so-called Swide open - tax amend
ment to the constitution which is to be
submitted to voters this fall. Mr..
Young has written a letter outlining his
opinions. on the subject in response to a
communication from James Arnold Of
Vesta, obiecting to the proposed amend
ment. XII " a
MIR. Young's Letter.
Mr.. Young's letter is self-expalna-
tory, and is as follows: ~ .@,...
have your recent favor in which you call
my attention to certain alleged defects in the
tax amendment to the constitution proposed by
the lsst legislature, which is to be voted on by
the people at the coming election. Your crit
lcisms OF the proposed amendment, reduced to
concise statement, are as follows:
Eirst--lt gives the legislature absolute power
Ill the matter of taxation that taxes could
be Imposed tor private well as for public
purposes. 1t Is unsafe to put unlimited power
In the hands Of the legislature
Second-1t continues what you call the un5us.
tihable Ia exception Of church properties
|Ihlrd-lt reoeals the inheritance tax amend
nent to the constitution and would make the
inheritance tax law void. 49,.
Fonr,h--1t would take away from the legisla-
ture the power to tax sleeping and parlor ears,
Telegraph and telephone companies, mines, boom
companies and banks, and by relieving the rich
OF their share of the public burden increase
the taxes Of the farmer and country merchant.
This tax amendment is contained in chapter
16S OF the laws Of 1905, and is intended to take
the place of sections l. 2, 3, and II of article
., and the essential part thereof. leaving out
the exemption clause, is as follows:
1.-THE power Of taxation shall never be sur
rendered, suspended or contracted away. Taxes
shall b. uniform on the same class Of subjects,
and shall be levied and collected for public
purposes ~ .-. .- ---
" Order Out of Chaos.
This language is plain and simple and easy to
understand If adopted it will take the place
Of a confused jumble of provisions, many of
Which are 1ncomprehensible. Your views as to
the eHect OF the adoption Of this amendment
are In my opinion, erroneous.
You first complain because under the amend
ment the legislature would have unlimited
power with regard to taxation, which would be
an unsafe enlargement Of its authority, and your
away from the legislature some of the power
1t has now, namely the power to tax certain
forms of organized capital.
You are wrong in both assertions. No power
that the. legislature has now would be taken
away. Its power would be greatly enlarged,
but not made absolute unlimited" Two
important limitations expressed in the act
as clearly as language can express them Taxes
are to be imposed only for public purposes, and
they must be uniform on the same class of sub.
jects. 1t is also provided that contract or
claimed. You seem to be Of the opinion that
| unless the power to tax express, telephone and
other companies Of that class is granted by the
constitution no tax can be imposed. The con.
trary is the fact. The right to impose taxes
for public purposes is inherent in the state
government. It is an attribute Of sovereignty
The power Of the state, thru its legislature, to
| impose taxes for public purposes is limited
only by the public needs, and the exercise OF
the power Is unbounded, except as limited BY
| the constitution. Take away all those nmita
| tions and all forms OF property can be taxed.
49,. Unwise Old Provisions.
When our state government was formed We
| unwisely and unfortunately prescribed number
| of constitutional conditions and limitations OF
| the exercise by the legislature OF the power OF
taxation. During the period OF business Jevolu
tion since that constitutiop was adopted many
| new forms Of property zand new methods Ao1
doing business have come, into being, In orde,
| to try to keep pace with the times, in the face
| of these objections, session laws and cour,
reports have been filed with bewilderina
mass Of laws, conflicting, inharmonious and
| illogical. But with all our efforts many forms
of property have always escaped taxation alto
gether. ...- ..-- / --.t .5-- -
stitution (Which it Is now proposed to dispense
property should have cash valuation and bt
equalized thruout the state These provision.
have prevented the enactment Of an Intelligent
and reasonable income tax law, which would in
| clude the income from Investments in stocks
bonds and negotiable paper They also pre-
| vented a registry tax on mortgages, the only
form Of taxation which will ever reach thest
securities.
|