Morris tribune. [volume] (Morris, Minn.) 1880-2000, 1912-06-28
TAXATION IN MINNESOTA.
Twenty-Second Article of the
Tax Commission Series.
XXII-THE COST OF GOVERN
MENT IN MINNESOTA NO. 3.

COST OF GOVERN
MENT IN MINNESOTA NO. 3.
Taxes are a compulsory contribu-
tion toward the expenses of govern
ment, and all citizens are supposed to
contribute according to their several
tax-paying abilities. In like manner
fees and fines are compulsory contri-
buttons, not indeed according to tax
paying abilities, nor from all citizens
but from all of certain classes or in
certain circumstances. All of these
receipts are consequently classed as
general revenues, and the sum
total of general revenues taken from
the people in the long run measures
the true cost Of government.
In contrast to general revenues.
commercial revenues are received by
the government in return for some
special service. In paying such sum
to the government. the citizen merely
pays for value received, much as he
does at grocery or dry goods
store. 1t is on this account that the
name commercial revenues" is en-
ployed for this class Of receipts. For
example, when man pays special
assessment for a ditch, or sewer, or
sidewalk, he is helping to pay for a
public improvement which is supposed
to increase the selling value of his
property by at least the amount of his
assessment. In case it does this, he
gets back, in another form, all that
he pays. Only in case he is assessed
more than the benefit to his property
is he taxed at all. while in all cases
where he is assessed less than the
benefit to his property. he actually
profits by the transaction. 1t is
clear. therefore, that special assess
ments, unless in excess OF benefits to
the property. are not a part of the
cost of government. On this account
it is essential to separate special as
sessments from taxes. special assess
ment loans from general loans, and
interest payable on special assessment
loans from interest on general loans.
The same line of reasoning applies
Eeven more clearly to publicity oper.
ated public service enterprises, such
as waterworks, electric, gas, heat
ing and power plants, telephones,
scales, markets, auditoriums. skating
rinks, cemeteries. warehouses, ferries,
and other enterprises which furnish
to the public specific commodity Of
service in return for a specific price.
In all these cases. the public enter
prise is merely substitute for some
private enterprise which would other
wise be patronized. What the in
dividual pays for its service is there
fore as little part of the cost o,
government as what he would pay tt
similar private concerns. Such pub
lie enterprises consequently figure il
the cost of government only in th'
event, and to the extent, that the!
fail to be self supporting and conse
quently become charge on the gen
eral revenues. For this reason. as il
the case of special assessments, it il
essential that the receipts for all pub
lie service enterprises, the debts in
cured on their account, and the pay
ment of interest and principal, on sucl
debts, be kept entirely distinct from
all similar items pertaining to tn
municipality in general. Unless sucl
separation is rigidly carried through
it is hopeless to attempt to learn tn
real cost of government.
The next article in this series will
consider certain fundamental distinc
tions between cases of expenditures
in relation to the cost of government