The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1930-06-13
SHOULD INFORM
PUBLIC ON TAXES
AUDITOR CHASE SETS FORTH
THE CAUSES OF HIGH TAXES
STATES THAT Int II E I
CHARGES ARE EATING AWAY
THE PRINCIPAL.

The public should be informed in
advance as to the total cost of public
improvements, State Auditor Ray p.
Chase declared in an address over
WCCO one evening last week. Only
by letting the public know fully and
frankly about its own business, Mr..
Chase said, Is there and opportunity
for reduction of taxes.
I'm Minnesota many believe that
taxes are too high" Mr.. Chase said.
Others sallege that taxes are not ex-
cessive but that our real problem is to
give to the taxpayers more and better
returns for the taxes they pay. Both
groups believe that taxes are out of
line with the returns received.
Thirty of our counties contain
municipalities in which tax rates range
from 1884 mills to 254.5 mills. The
latter figure means that owners Of
property in that village pay every
year more than Is cents on each dollar
of assessed valuation. In four years
the tax paid exceeds the assessed value
Of the property. In name this is tax
ation-in fact, it is confiscation. In
the last few years 100000 acres Of
land In Minnesota alone have reverted
to the state for non-payment of taxes.
In several counties the situation has
reached a point where from one-fifth
to two thirds of the txes levied are I'M
paid.
Causes Of high taxes are public i'm
provements, such as school houses,
court houses, libraries, parks and roads;
service by county and town boards,
courts, village councils, teachers fire
men, and policemen; state aid to socie-
ties, schools, etc.; and interest on pub
lie debt eYx
"It is certain coming years will bring
no reduction in the total expenditures
for education. There will be no re-
duction in total sums for improve
ments, for we continually demand
more and better roads and public
buildings; nor will there be reduction
in administration expense, for we will
have the same courts, schools and
other administrative units. The only
item offering opportunity for sub
stantial tax reduction is interest on
public debt.
Interest buys nothing. 1t merely
postpones the day of payment. If you
pay 5000 in taxes, 500 going for an
improvement, and 500 for interest,
you are paying twice what you would
pay if the interest could be eliminated"
Mr.. Chase cited examples of public
improvements in which interest paid
exceeded the original cost of the pro-
ject. These included bond issue in
Saltwater for $4,000 on which the
taxpayers paid $500 interest; the old
Robert Street bridge in st. Paul torn
down four years ago, which will not
be paid for until 1916 and on which the
interest will nearly triple the original
loan through bonds; and the Mime
apolis city hall and courthouse, on
which payments will end in 1885 with
interest totalling 100000 more than
the cost of the building.
Had the taxpayers of these cities
known in advance how much in taxes
they would be compelled to pay for
interest, they would have financed
their improvements differently" he
said. "Other cities and counties have
had similar experiences, what they
needed then was advance information
about their business. That is what
we need now"
To meet this need, Mr.. Chase said
the State Auditor is issuing another
book on taxes. It is entitled "Your
Taxes" and contains the tax state
ments Of $40 well known persons, six
from each county, three of them far
mers and three business or professional
men. They show in detail the taxes
levied in 1918 and 1923 and paid in
1919 and 1929, as we'll as how each
governmental unit expended it's share.