Morris tribune. [volume] (Morris, Minn.) 1880-2000, 1912-10-25
GROSS EARNINGS TAXES.
Vote for Proposition to Increase
Rate to Five Per Cent.

DAlAS puDllSlSo tuC lOIlO"5AS AL bAO
Kanabec County Times =
By far the most important question
to be voted upon the by voters at the
election in November is the proposed
j. increase of railroad taxes. Railroads
pay taxes upon their gross earnings,
the present rate being four per cent,
|. and the proposed increase fixes it at
! five per cent. The question of max
ing the increase was submitted to the
voters by the Legislature at the recent
special session and was the most i'm
portant piece of legislation passed by
the extra session.
The railroad tax proposition appears
in black faced type upon the separate
state ballot provided for the constItu-
tional amendments. 1t is the third
proposition upon the ballot but is not
designated by number for the rea-
amendment. 1t appears between
numbers two and three of the proposed
constitutional amendments. Every
voter should vote in favor OF the in-
crease. Its adoption by the voters
will increase the state revenues from
railroad taxes approximately one
million dollars per year. In order to
carry this proposition it must receive
the affirmative vote of majority
Of all those who vote at the election.
whether they vote upon the PROPOSE
tion or not. The failure to vote upon
it will have the same effect as a vote
against it. The first attempt to in
crease the gross earnings tax from
three to four per cent was defeated
because voters failed to vote upon the
proposition and it had to lie submitted
a second time two years later the
state losing two million dollars in
revenue as the result of the careless.
ness OF the voters. That should not
be allowed to happen this time.
There can be no question as to the
justice of the proposed increase of
railroad taxes. when the taxes now
paid by the railroads are compared
with the amount paid by other pro-
perty throughout the state For
years our state Officials have been
presenting figures showing that rail.
road taxes are too low, but we have
hesitated TO increase the tax for fear
it might affect adversely the pending
litigation with the railroads regard.
ing passenger and freight rates. AS
the litigation has passed the stage
where an increase would nave any
bearing upon the questions involved.
the Legislature concluded that it Was
the proper time to submit an increase
to the voters of the state. ShoulC
the proposed increase to five per cent
be adopted, railroad taxes still will
be under what other properties are
paying and less than the railroads
would be paying if they paid taxes
upon an ad valorum basis.
Opponents ofthe increase in railroads
taxes are using the argument thai
increase will be charged back to the
patrons of the railroads. This is NJ
doubt true to certain degree, but
the same argument might be Offered
against the taxation of every industry
or business in the state which mus
derive its revenue from the people
In the case of the railroads, however
conceding for argument sake that thu
tax would be added to freight ant
passenger rates, only part of the
tax would be collected from the citi
zens of this state.
Railroad taxes are computed from
gross earnings within the state anC
from that part of interstate earning!
. earned within the state. In the cas-,
of interstate earnings large proper
ton of the increased tax would b.
paid by non.residents of the state
Take for instance the iron ore industr,
saof this. state which contributes one
third of the railroad taxes of tn,
state. This tax, if added to the orr
and in turn to the finished produc
would be diffused throughout tn,
entire civilized world, and the pro
portion which would be paid by Min
nesota residents would be so small
that it would not be worth consider
ing.
Large quantities of wheat and othe
grain is shipped through this stat,
from the states west of us and from
Canada. The Minnesota farmer woult
pay no part of the tax imposed upor
this grain through increased rates
because of increased railroad taxes
The large jobbing and manufactur
ing interests of our cities undoubtedlv
ship much larger quantity of thei
wares to non residents than to resi-
dents of the state, If increased rail
roads taxes are TO he added, IN tha oou