The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1906-12-16
URGES LOCAL OPTION
SCHEME OF TAXATION
Lawson Purdy, of New York, Points to Minnesota as
Example for Ohio and Favors Local Option as Result
Of wide Open" Constitution

Minnesota g action in passing wide
apen tax amendment. to the state con-
stitution was held up to the emulation
Of Ohio by Lawson Purdy, the New
York taxation expert, in a speech at
Columbus, last Thursday. His remarks
/ were of special interest and value to
/ Minnesota, because he not only re-
/ viewed the situation here, but discussed
/ the sort of tax legislation that ought
/ to follow the removal of constitutional
restrictions For this reason he
journal gives space to most of Mr..
Purdy s. address. - s... .-.
The speech was delivered at the an
nual meeting of the Ohio Board Of
Commerce., an organization that has
and has for it's avowed purpose to
make Ohio ''the best state in which
to make a living, to own property, and
to have your home.'' The state now
has a tax commission, but is strug-
Cling under the same Anticipated form
of constitution from which Minnesota
has just escaped. The. taxation question
Carleton L. Wallace of Minneapolis at
tended and took part in the discussion.
Mr.. Purdy first took up the argument
against a state tax based entirely on
local assessments. He said it had been
found that local assessors would list
property at less than it's true value, in
order that their districts might bear
less than their just portion of the state
I tax. Also, while disobeying the law in
that regard, the officials were not held
TO any just OF legal standard, and gross
[ the rural districts is easier to reach
for taxation, they are made to bear
more than their just share of the state
tax.
The scheme of raising all state reve-
/ nue. by special taxes leads to extrava-
gance or poverty, said Mr.. Purdy, be-
cause it has no elasticity. When times
were hard Pennsylvania s special taxes
fell off, and the schools had to be cut
state treasury to repletion, and the
$9,O0O,0OO spent for decorating and
furnishing the capitol at Harrisburg is
result. In New York in 1894 the total
/ state revenue was $l3,000,000, of which
only one-third came from special taxes.
This year the revenue was $27,0O0,000,
all derived from special taxes, and
plans are being made to increase it to
$33,OO0,OOO. Some highly Objectionable
taxes have been levied to swell this
total. So while it is true that certain
assessments can he better made by
state board, yet there should always
be a good margin between the revenue
derived from special taxes and the to-
tai revenue Of the state. On this point
Mr: Purdy quoted Professor R. A.
Seligman Of Columbia university, the
leading authority on taxation in the
country. Professor Seligman favored
special state taxes, but not the raising
Of all revenue by state taxes, as New
York is now doing. This results in rural
legislators levying special taxes that will
fall hard on the cities, such as the tax on
stock sales recently imposed. TO avoid
this, and to give the element of elias
ITCHY, there is the scheme suggested
by the, New York Tax Reform associa-
/ ton, and put in partial operation in
the state of Oregon. The scheme, which
/ has become known as "the Purdy
! PLAN is to make each locality con-.
i tribute to the state revenues in proper
I ton to it's own expenditures. Professor
I seligman enumerates the following adj
! vantages: