The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1911-05-12
Friday, May IL, 1911


"The total amount of money and
credits returned by assessors In
1910 was less than $16,00O,000. While
this amount includes money on
hand and on deposit, book accounts
notes. bonds and demands of every
kind not secured by real estate
mortgages, it does not equal all told
five per cent of the money actually
on deposit in Minnesota banks at
the time the assessment was made;
and is probably less than three per
cent of the amount OF such property
actually owned in the state. This
is not very flattering showing for
the men who made the assessment;
but this commission believes that
the fault was not so much with the
assessors as it was with the law. The
attempt to tax money and credits at
the same rate imposed upon tangi-
Bile property has everywhere and al
ways proved a failure The reason,
we believe. is not hard to find. Tax
rates in Minnesota range all the
way from l to 1919 per cent, the av-
erage rate for the state being APP
proxlmately 2. per cent At these
rates the owners of income produc-
ing credits, like certificates of de.
post and non-secured promissory
notes, if their property has been
properly listed and assessed, have
been compelled to pay all the way
from 20 to 100 per cent of their
income in taxes. This is more than
men made of common clay will pay
II they can escape, and the records
eonclusively show that most of them
have had little trouble in finding
way to escape.
Property Easily Concealed.
outside OF our American states,
no civilized government in the world
attempts to levy such heavy taxes
on property that can be as easily
concealed as money and credits.
widows and orphans and people
ignorant of the methods used to
eVade the tax have usually been
caught; but the vast majority of
taxpayers have simply ignored the
law and refused to list such prop
erty, and the assessors with rare ex-
ceptions have been utterly unable
10 lind it, Experience throughout
the world is universal that when
tax rates exceed ten per cent of the
income of money and credits such
property goes into hiding and can.
not be successfully reached by any
means that would long be tolerated
by a free and enlightened people.
chapter 2S5 was designated by
the legislature to do away with
these unfair and undesirable condi-
ions and to make it possible for
honest taxpayers to return a true
list OF their money and credits
without being compelled to surren.
der from 90 to 100 per cent of their
incomes from such property in taxes.
Inc law was also designed to place
money and unsecured credits more
nearly on an even footing with mort.
cages so far as taxes are concerned
Laws similar to the one i'm question
nave been in successful operation
IN Pennsylvania and Maryland for
many years, and there is no reason
In the world why chapter 2S5 should
not prove pronounced success in
Minnesota.
Very Low Tax.
"A tax of So on $1,000 (3-1O of
per cent? is a very low tax and M
good citizen will seek to avoid If
Or course there are in every com.
munity some men so miserly and
lacking in public spirit that thew
are unwilling to pay anything thew
can escape in the way of taxes. but
We believe that the average citizen
Is willing to do his duty as a tax.
payer and that when he fully under
STANDS the effect and purpose of this
law he will cheerfully make and
furnish you with a true list of his
money and credits.
We earnestly urge that Won make
a careful study of the law so that
you can explain it's purpose and
provisions to inquiring taxpayers:
and more especially, SO that Won can
properly enforce it.
Money as defined in the law
means money owned by the party
making the list, whether in his nos.
session or on deposit, or wherever
1t may be; and credits covers all
DOCK accounts, bills receivable, prom.
lssory notes, bonds, annuities. and
all other claims and demands for
money or other valuable things. The
law, however, does not cover money
hotes and bonds owned by incorpo.
rated banks in this state, or notes
ana bonds secured by real estate
mortgages recorded in this state on
which the registry tax has bean
paid; nor does it cover municina,
bonds issued since April 18th of tbe
present year.
Assessment at Fair Cash Value.
The assessment should be made
at the fair cash value of the nron.
erty and not at percentage of sucb
Value. Under the law, debts owing
by the party making the list cannot
De deducted from the money and
credits owned nv him (Coo o..