The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1928-08-10

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cultural lands, the situation would
have been reversed. Today practically
all mining property is included within
municipal limits. Very little of that
property receives any benefits from
municipal government. 1t is included
for but one purpose-to help pay un-
usual and excessive expenses of local
governments expenses imposed large
ly by those who pay no taxes.
Most Taxes Paid by Mining Companies
1.-THE next and largest cause for ex-
cessive taxation Is the unusual condi-
ton surrounding the expenditure of
public revenues on the iron ranges. In
most parts of Minnesota taxes are
levied by those who will pay them
Extravaganza and waste will fall upon
consequently the public interest is to
keep expenditures down. This is not
the case on the iron ranges. In many
villages and cities 900 of the property
is iron ore. Those who vote the taxes
do not pay them. Extravaganza may
affect seriously the industry upon
which the mineral regions are depend
ent, it may cut down employment and
leave burdens of debt which the flu
ture cannot pay. But the public does
not see into the future or understand
the intangible things of the present
The people of the iron ranges have
seen an opportunity to tax and spend
and they have taxed and spent To-
day, as 1t will be shown later, munich
pal expenditures are six times as high
in the mineral regions as in other sec
tions of Minnesota. Other expendi-
lures are in about the same proportion
1t is this unusual condition which has
set the mining industry apart, distin-
guished iron ore from other property
and made it the subject of extravagant
and wastefull taxation.
Backlash of Unjust Taxation.
For nearly two decades discrimina-
ton against the iron mining industry
has been agitated. This agitation has
resulted in the conditions which we
have sought to explain briefly To
justify such conditions all manner of
argument has been used The public
has not understood a fundamental that
injustice to an industry is injustice to
itself. The victims of unjust taxation
expressed in high assessment, the oc-
cupation and royalty taxes and excess
sive expenditures, are not a few cor
porations which mine iron ore, but
the people engaged in and dependent
upon sound condition and q perman-
ent future in iron mining. High taxa
ton has Disseminated, not so much
against corporate capital as it has
against the six thousand men who were
employed in Minnesota mines six years
ago and who are not working there
today The victims of discrimination
are the communities and the people
of Minnesota. And some who suffer
are those who have been most active
in perpetrating the injustice of the
present tax system.
"The taxation of iron ore has not
been established upon moral or econo-
mic principles. 1t is political pro-
duct, for iron ore has long been a poll
tical plaything in Minnesota. The
situation fits exactly statement made
by distinguished economist, w. B.
Monroe.
Economists define taxation as
the levying of certain compulsory
contributions upon individuals
and corporations in order to pro-
vide public revenue The assumed
purpose of taxation is to provide
public revenue; its justification is
the common benefit which comes
from the expenditure of this
revenue That is taxation as the
economist sees it. But tax laws
they are the handiwork of politi-
clans. And the politician has a
very simple philosophy of taxation
To him, taxation is system of
levying compulsory contributions
in whatever way will produce the
least cutlery From the politicians
point of view, the measure of tax
alton is not ability to pay, but in
ability to resist His favor leans
to the element that can produce
the votes. He tempers the wind,
not to the shorn lamb, but to the
ram with horns. Public senti-
ment, he says, demands a high
tax on some things and a low tax
on others. What he means, of
course, is that one is more audible
than another"