Morris tribune., 1906-12-29

is to make each locality contribute to
the state revenues in proportion to
its own expenditures. Professor
Seligman enumerates the following
advantages:
Reasons for Local Options.
"First-It would provide elasticity
as did the old system; second, it would
tend to keep down state expenditures,
because each locality would be inter
ested in the control of the state fin
ance-a an interest which is now fast
being lost; third, it would tend to
keep down local expenditures and
fourth it would enable each locality
j to raise the revenues in any way
that seemed best to it and would put
a stop to the conflicts between country
and city. If the rural districts desir-
ed to maintain the personal property
tax, they could do so; if the large
cities desired to substitute something
else, they would be equally free to
follow their beat"
Mr.. Purdy, taking up the argument,
said that the proposed system would
reduce the present burden on the
rural districts. The city has greater
expenditures, for its police, fire de-
partments, street cleaning and other
necessities. So the city's share would
be larger in paying the state tax, but
this is right because the great unearn-
ed values lie in the cities in the value
of the city lands and city franchises.
The system would put the taxation
burden on the profits of privilege and
not on the fruits Of industry. 1t
would be like a tax on private in
comes, but an income tax is not the
worst tax and this political income
tax is better than a tax on private in
comes. 1t is difficult to prevent an
ordinary income tax from Furnishing
thrift, but the political income tax
.. will fall the heaviest where unearned
values risJ the highest.
"Everything about taxation in
constitution is dangerous" was Mr..
Purdy's next declaration. He held
that the federal constitution was ample
to guarantee fundamental rights. The
Ohio constitution, which is full of
limitations and in fact is the model for
Minnesota's original constitution as to
taxation, is so bad that any effort to
improve conditions under it's regime
is wasted. The rule that all property
should be taxed at its true value in
money, is ''utterly impossible to en-
force" and eff it could be enforced
would produce the most abominable
injustice that was ever perpretrated."
It means that capital invested in
manufacturing or stockraisirg yields
a poor return in comparison with
capital that escapes taxation.
In mercantile business there is also
inequality, as Mr.. Purdy explained:
''Capital invested in retailing goods
with which there is no outside compe-
tition, can make an average profit by
adding the tax to the price of the
goods. If there is outside competition
the profit may be all cut of the bust
ness. Again, different kinds of retail
business are totally different. In one
large capital may be employed and
a large stock of goods always kept on
hand, which is turned over very slow
ly. In another the stock Of goods
may be replaced several times in the
course of the year.
''The shifting and incidence of tax
alton are controlled by immutable
natural laws, which the equal taxation
theory entirely ignores. The more
perfectly the theory is applied the
more unjust is the result"
Experience of Minnesota.
"The experience of the state Of Min
nesota during the last Eve years." said
Mr.. Purdy, sis full of both warning
and encouragement TO the state of
Ohio. Until the election in November
the state of Minnesota was cursed with
a constitution copied from that of Ohio
and Illinois. Then the following sim
pie provision was adopted: 'The pow
err of taxation shall never be surren-
dered, suspended or contracted away.
Taxes shall be uniform upon the same
class of subjects, and shall be levied
and collected for public purposes
'sIn 1902 a special tax commission
made report in which it said that so
1 IL. =