Askov American. [volume] (Askov, Pine County, Minn.) 1914-current, 1931-04-02

come tax but failed to show that it
will be an additional tax to the farm
ers, and wherein the bill is wrong.
Wants Very Low Rates.
Charles E. Elmquist, former rail-
road and warehouse commissioner,
and whoNsaid he is also representing
the Minnesota Taxpayers association,
appeared before the House tax COM
mittee one day when the income tax
bills were being considered. The rates
in the bill as drawn now are from
one to five per cent on incomes over
the exemptions. Mr.. .Elmquist, who
by the way was citizen of Chisago
county for many years, suggested that
the highest rate of income taxes
should not be more than three times
the lowest rate; nor should the rate
upon corporations exceed the highest
rate for individuals. If that sug-
gestion were carried out, the highest
rate would be three per cent. The
maximum rate of five per cent in the
present bill is low enough and, in
fact, should be much higher. So the
suggestion of Mr.. Elmquist makes it
plainly evident who the boys are that
he is batting for He also suggested
that exemptions should not exceed
$500 for an individual and $500 for
the head of the family plus 5000
for each dependent member of the
family. Mr.. Elmquist further sug-
gested that revenues derived from
income taxes shall be distributed for
ty per cent to the state, fifty per cent
to the township, village or city where
the taxpayer resides and ten per
cent to the county where the taxpayer
resides.
With provisions like that we might
almost as well not have an income
tax. The main purpose back of a
state income tax is to relieve the bur-
den of general property taxes and to
have it shouldered little more by
those who can we'll afford to pay for
it. Naturally the biggest income tax
payments would be made in the large
population centers such as Minnea-
polls, st. Paul and Duluth where most
of our millionaires reside. 1t it was
not for the rest of the state there
would be no such large cities and
the eight million dollars, which the
present bill presumes to collect, is
mighty small sum that general prop
erty taxpayers are asking for. 1t
amounts to about four mills in the
tax rate.
Monopoly Only Can Pass Tax On.
If income taxes can be passed on
by the wealthy to the consumer, as
argued by some, then it seems strange
the wealthy or their agents should
be so anxious to have the rates
so low or to have no income taxes at
all. The way they have clamored for
lower rates on federal income taxes
| and succeeded in securing them is a
good example. Income taxes are final
and cannot be passed on like sales
taxes and other taxes.
A mans wealth was measured
largely by the amount of property he
possessed rs to so years ago, but not
so today, or at any rate his earning
capacity cannot be measured by prop
erty holdings. Therefore other modes
OF taxation must be employed. The
| income tax is good one and causes
hardship to no one. Those who are
asked to pay income taxes can we'll
afford it and it makes for a more
equitable distribution of the tax load
Figures of the National Industrial
Conference show that 80 per cent of
the farmers income goes for taxation
while the average tax for industries
is from 1919 to 11%o. A readjustment
is needed.
Exemptions Low Enough.
Opponents of income taxes are cry