The Sauk Centre herald. (Sauk Centre, Stearns County, Minn.) 1886-current, 1930-09-25
STATE INCOME TAX
Isl CAMPAIGN issue
Flood of Bills Is Forecast
Candidates Pledge Effort
for Amendment
TO RELIEVE TAX BURDEN
Gross Sales Levy $5O,000,0O0
a Year PrOp0sed-Cigaret
Tax Idea Revived

| State income tax is looming as
the leading legislative issue in
. minnesota elections. It is being
brought forward by several of the
veteran members of both houses,
who are promising to vote for sub
mission of an income tax amend
ment if they are elected.
The outlook is for flood of tax
bills in the legislature this winter.
There will be income tax bills,
sales tax bills, bills to tax cigarets
and other luxury items, and bills
to work out settlement of the bank
tax muddle. Bills to tax "chain"
stores are expected.
The big issue is the income tax,
which requires an amendment to
the state constitution. The next
legislature could only submit the
amendment, and it then would be
voted on by the people at the 1892
election. That would make it a
live issue for two years and a task
for still another legislature if the
amendment passed. Popular ap-
proval is doubtful, however, as
there is prejudice against new
forms of taxation, and a similar
amendment failed when submitted
several years ago.
Income tax advocates are taking
a new tack in Minnesota this time.
Senator James A. Carley, of Plain
view, Otto Neuman, of Wheaton,
and others are proposing an in
come tax to relieve real estate of
part of it's present heavy tax bur-
den. Mr.. Neuman, who has been
chairman of the house committee
on taxes at recent sessions, calls
the plan a Reimbursement" income
tax.
The idea is that any income tax
paid by an owner of real property
would be allowed as a credit on
his real estate taxes. In most cases
therefore, property owners would
pay no additional taxes, but others
would be reached by the income
tax. The income tax would be di-
vided up among the state and To-
cal units of government, the same
as property taxes.
Senator Carley and Senator Gus
tat Widell, of Mankato, are talking
income tax in their campaigns, and
Senator Carley has tax plan he
would put through without wait
ing for passage of an income tax
amendment. He outlined it at a
meeting of first district editors re-
Gently. He favors a gross sales
tax, to raise some $50,000,000 a
year, and to be used to cut down
the general property tax. He also
would impose luxury taxes. He
claims that these special taxes
would make it possible to cut down
other taxation 40 to so per cent.
The Minnesota Taxpayers Asso-
citation opposes the income tax and
other new forms of taxation, on
the ground that they always lead
to increased expenditures and do
not tighten anyone's tax burden
They point to the Wisconsin ex.
perience, where at first the income
tax was made in lieu of personal
property taxes. but where later
on it was found that more money
was needed and personal taxes
were imposed again.
| The Minnesota Farm Bureau
| Federation is for an income tax.
The plea is made that property
taxes are becoming confiscatory
and that many are escaping taxa
ton who ought to take part in
carrying public burdens. This SUBJ
ject promises to develop one of the
major legislative battles of next
winter.
The cigaret tax bill, which was
defeated last time after a hard
fight, is being urged again by Roy
E. Dunn, of Otter Tail county and
is expected to come up again at the
1881 session. With it will be other
ideas for taxing luxuries. Oppon-
ents of the cigaret tax last year
argued that it was unfair to tax
cigarets without taxing cigars,
snuff, candy, cosmetics and other