Morris tribune. [volume] (Morris, Minn.) 1880-2000, 1911-05-12
MONEY TO BE TAXED.
Rate So Small That No One
Should Dodge.

The last legislature passed law
exempting "monsy and credits, -
from the general property tax, and
providing for tax of three-tenths Of
one per cent. The provisions and
purposes of the law are set forth in
the following letter sent to assessors
by the Minnesota Tax Commission =
'The total amount of money and
credits returned by assessors in 1910
was less than SIG, OOO,0 900. 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 as
sessment 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 fiatter-
ing 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 tangible property has
everywhere and always proved fall
ure. The reason we believe, is not
hard to find. Tax rates in Minnesota
range all the way from 1 to 1919 per
cent. the average rate for the state
being approximately 2.7 per cent. At
these rates the owners of income
producing credits, like certificates OF
deposit and non secured promissory
notes. if their property has been pro-
perly 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 if they can
escape, and the records conclusively
show that most of them have had
little trouble in finding way to es-
cape.
"Outside of our American states,
no civilized government in the world
attempts to levy such heavy taxes on
property that can be as easily con-
cealed 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 property, and the assessors with
rare exceptions have been utterly I'M
able to find it. Experience through
out the world is universal that when
tax rates exceed ten per cent of the
income of money and credits such pro-
pertv goes into hiding and cannot be
successfully reached by any means
that would long be tolerated by free
and enlightened people.
"Chapter 2S5 was designed by the
Legislature to do away with these I'M
fair and undesirable conditions and to
make it possible for honest taxpayers
to return a true list of their money
and credits without being compelled
to surrender from 20 to 100 per cent
Of their incomes from such property in
taxes. The law as also designed to
place money and unsecured credits
more nearly on an even footing with
mortgages SO far as taxes are concern
ed. Laws similar to the one in ques-
ton have 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 Mime
sofa.
"a tax of So on $1,000 (3-1O of
/ per cent? is very low tax and no
good citizen will seek to avoid it. Of
course there are in every community
some men so misery and lacking in
public spirit that they are unwilling to
pay anything they can escape in the
way of taxes, but we believe that the
average citizen is willing to do his
duty as a taxpayer and that when he
fully understands the effect and pur-
pose of this law he will cheerfully
make and furnish you with a true list