The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1929-02-08

A member of the legislature in Min
nesota does not often desire to relin-
quish his off1e. But in case he should
desire to give it up, how does he go
about it? He may die, or he may be
expelled. Neither of these methods are
popular. Inasmuch as the attorney
general has ruled that he cannot re-
sign, your solon does his best to stick
it out for the full term to which he
was elected.
Those two inescapables, death and
taxes, are another hard alternative.
Life is one long struggle to escape or
to reduce taxes. Since civilization
was invented, nobody has been able to
escape taxes, and we are beginning to
fear that they are not reducible. Taxes
mount as easily and, it seems, as in
evitably as sparks fly upward
During the past twenty years in
Minnesota the total taxes levied upon
the people have leaped upward at
the rate of $5,O00,000 a year-from %
millions to 100 millions.
State an Exception.
If there is any exception to the rule,
it is the State of Minnesota whose
taxes during the past eight years have
practically stood still, while the taxes
of cities and villages, townships, coun-
ties and schools have mounted from 96
millions to 100 millions.
The abundant streams of revenue
which gushed forth when Alexander
Hamilton struck the rock of public
credit were only rivulets compared TO
the flood that swept into the national
treasury when congress smote the in
fnU nra noC mn
Where congress once seriously debated
it's thousands and its tens of thou
sands, it now disposes of its millions
and it's tens of millions over the tea
cups. Tomorrow billion will be only
modest mornings work.
The local subdivisions of government
in Minnesota have piled tax on tax un-
til today government in Minnesota eX-
acts tribute of 100 millions from it peo-
pie. If we groan under the burden of
taxes, it is the crushing weight of To-
cal taxes that overwhelms us, not the
comparatively modest expenses of the
state, which in an era of riotous tax
living, has practiced a notable and a
praiseworthy economy. Out of the
total of 100 millions of taxes levied
thruout the state, the state itself is
chargeable with less than 9 millions.
For local government, SO per cent Of
the grand total; for state government,
z per cent-and the state turns back
to the localities more than one-half
of that per cent.
A Notable Record.
Following the war governmental ex-
penses took the upward curve along
with other costs. Appropriations by
the legislature rose from % millions to
40 millions, but, while the cost of To-
cal government and the appropriations
of other states steadily mounted, the
appropriations of the Minnesota legis-
lature have now stood at 40 millions
for three consecutive sessions.
Minnesota has not borrowed from
Peter to pay Paul in order to make
this record-that is, the state has not
saved the taxpayer of today at the
expense of the taxpayer of tomorrow.
1t has been as careful and conserva-
tive in the matter of burdening it
self with obligations as it has in the
matter of its daily outgo.
The total debt of the cities and viii
lagos, the townships, the counties and
the school districts of Minnesota in
1924, the last year for which figures
are available, was 240 millions 1t is
undoubtedly more today. Contrast
with that huge sum the comparatively
insignificant state debt of millions
This figure, of course, does not in
clude road bonds or rural credit bonds
which, it is expected, will be paid from
receipts other than the proceeds OF
taxation. This four million of state
debt will be reduced to million be-
fore the end of the year.
More than that the state will by the
close of 1929 have in its permanent
trust funds more than 70 millions OF
dollars!
Where Does It Come From?
Where does the state get the money
that it spends? From direct taxation,
from indirect taxes and from the re-
ceipts of various state department and
state activities.
Excluding the state one mill road
tax and the state one mill school tax,
which are not state taxes at all, but
which are merely taxes collected by
the state and turned over the various
local subdivisions of government-eX-
Guiding these two taxes, the state has
raised by direct taxation during the
past two years an average of little
less than million dollars per year.
Gross earnings taxes on railroads,
express and telephone companies, ETC.,
now exceed millions per year. Other
indirect taxes, including the occupa-
ton tax on iron ore and the royalty
tax on iron ore, are about millions
per year.
It is a notable fact that the state
government itSelf-that is, the various
departments such as the auditor
Office, the secretary Of states office,
the department of game and fish, ETC.,
are largely self supporting. The direct
taxes paid by the people of the state
for running the actual machinery of
the state government are SO i:,signi-
flcant that they are comparable only
to the penny you drop into the ubi-
quitous weighing machine to find out
how much you must reduce.
How Does It Go?
How does the state spend its money?
What is the machinery of it?
The state disburses its funds princi-
pally in two ways. Some standing tax
levies are provided by law, either for
stated or for indefinite periods. For in
stance, the state university receives
the proceeds every year, in addition
to any appropriations made it by the
legislature, of a levy of 23-100 Of mill.
This amounts to about $425,000 per
year and Is to be continued indefin-
itely. During the past ten years, also,
the university in addition to all ap-