Askov American. [volume] (Askov, Pine County, Minn.) 1914-current, 1930-12-18
PROPOSALS ON THIS IMPORTANT
SUBJECT BY
HJALMAR PETERSEN
from Pine County

means of reducing farm assessments
at the National Farmers Union meet
ing in St Paul on Nov. 2O-an aid to
agriculture. The convention resolu
lions committee unanimously ap-
proved a resolution calling for sub
stitution of the state income tax prin-
ciple for the ad valorem tax as far
as possible. Adoption of state in
come tax program by the National
Union is a step to relieve the taxation
burden on farm lands which speakers
have repeatedly asserted is unjust as
compared with taxation paid by in
dustry. Figures of the National In
dustrial Conference were cited at the
convention showing that 1870 of the
farmers income goes for taxation
while the average tax for industries
is from 1910 to 11%o.
The state income tax also has the
endorsement of other farm Organiza-
tions and farm leaders in various
states of the Union.
Income Tax Not Harmful.
Generally speaking. taxation should
be placed where the biggest profits
are made and where the individual is
best able to pay. There is no getting
away from the fact that if a person
paid, say for instance, 500 income
tax on a $4,000 income, he would
rather have an income of $4,000 and
pay $500; he would rather have an in
come of $4,000 and pay $1,000 tax,
and so on up the line. That tax is
not a detriment and will not tend to
slow anyone up in business.
Therefore it is interesting and en-
couraging to note that the Minnesota
Farm Bureau Federation has gone on
record for a state income tax. l am
in accord with the Farm Bureau on
this measure. The Bureau has
thoughtfully brought out that whatever
is derived through asstate income tax
should be used to lower the real estate
tax and not for the creating of further
expenses in state government. Our
neighbOring state of Wisconsin as well
as other states in the Union have set
The state tax levy in Wisconsin has
been materially reduced and in some
years entirely wiped out through col
lectiOnS on incomes. The great pOr-
ton of a state income tax will be
paid in the larger population centers
where the wealthiest men reside. The
opposition to the proposed state in
come tax will naturally come from
those sources, but with an united front
and an aggressive campaign there is
no reason why the measure cannot be
enacted by the Minnesota legislature
as has been done in many other states
in the Union. The cities of Mime
apolis, st. Paul, and Duluth would not
have their wealthy men if it were not
for the rural counties like Pine and
eighty or more other counties. The
state income tax will not hit the men
OF smaller means but will break in
where the profits are larger and
where it will be no burden to pay.
Many States Have 1t.
The income tax is no experiment for
it is functioning to the advantage of
the vast majority of taxpayers in 81
states, and will no doubt be one of the
leading issues in several state legis-
latures this winter. The governor
elect in the state of Iowa won his
election chiefly on this issue.
Prof. Harold NJ. Groves, economist
of the University of Wisconsin, re-
Gently elected to the Wisconsin legis-
lature. states that farmers and real
estate owners pay from 2O%o to 500
of their incomes in taxes, while pro-
fessional people. salaried people, and
bond-holders pay on an average of
20 to 4&o of their incomes in taxa
ton.
Mr.. Groves advocates income taxes,
the proceeds of which go to the central
government to be collected chiefly in
the large centers of population-and
to be used for upkeep of the central
government, relieving the burdens in
the rural districts among the farm
ing population. Mr.. Groves also adj
vocates that part of this tax should
be used for the upkeep of the school
system. In addition he advocates
a stronger public utility tax and in
creases in the inheritance tax. He
has declared very strongly against
the consumption or sales tax. Prof
Groves is recognized as keen stu
dent of the tax problem among the
progressives of Wisconsin, and no
doubt will be an influential factor in
helping to frame up an even better
tax reform bill for our neighboring
state.
More AdherentS.
Further evidence that there is an
increasing drift throughout the coun-
try toward the income tax as a way
to lessen the burden being placed on
real estate and personal property
comes from an editorial in the con-
sentative Chicago Daily News Dis
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