Askov American. [volume] (Askov, Pine County, Minn.) 1914-current, 1931-09-24
SEEING THE LIGHT

Personal initiative and industry
must be recognized and men and wO-
men of ability who do things must be
well paid, but the Capitalization of
wealth can be carried too far and we
have about reached that point in this
country as has been brought out in
the Askov American week after week.
Talking and working for higher fed
eral income taxes to those who have
the largest incomes and adding state
income taxes to alleviate the burden
of real estate taxes, and in the case
of federal income taxes also for the
purpose of decentralizing wealth, is
getting at the root of the evil, and
may yet sound very radical to some
folks, but it is encouraging to note
that more and more people are COM
ing around to that viewpoint.
The latest adherent to this program
is none other than the conservative
Republican congressman from the
Sixth Minnesota district, Harold Knut-
two Minnesota congressman that voted
for the obnoxious Hawley-Smoot tariff
bill. Mr.. Knutson has been congress
man since 1917 and in all that time
has been closely allied with the Har-
ding, Coolidge, and Hoover admin
strations. In the statement issued
from Washington Monday he decries
the sales tax, urges increases in the
upper brackets of the federal income
tax, and increases in inheritance tax
es with a gift tax to prevent disposal
of the property before death of the
teStatOr.
Considerable political significance
is being attached to the statement by
the Sixth district congressman who
has been regarded as a rOck-ribbed
staIrdpatter. 1t is interpreted as
meaning that he has noted a change
in sentiment in his district and is
now leaning toward the progressive
group.
Coming from this conservative law
maker it was like bolt out of a clear
sky when Mr.. Knutson said that "all
this talk about killing the goose that
lays the golden egg is sheer nonsense
and is being INDUCED in purely for
the purpose of preventing the passage
of legislation that will ultimately give
US wider distribution of wealth and
a more equitable distribution of taxes.
All fair minded individuals must adj
NIT that there is something wrong
with a tax system which permits CT
the accumulation of fortunes that run
into the tens and even hundreds of
millions of dollars in one short life
time"
More dynamite was exploded when
he expressed a thought which has
been uppermost in the minds of lead
ing progressives and statesmen for
no little time-a situation which
much effort is now being put forth to
remedy. In the words of Mr.. Knutson:
Under the present system it is in
evitable that the wealth of the coun-
try will ultimately become central
lied in the hands of a comparatively
small number who enjoy. tax exemp-
lions which place them in a preferred
class. The setup is archaic and un-
democratic"
other excerpts of the Knutson state
ment included the following:
THE enormous deficit of 900 mil
lion dollars incurred by our govern
ment during the fiscal year ending
June both, with the probability of
further large increase in the deficit
for the present fiscal year, makes it
imperative that the new congress take
steps to balance the budget. This
should be done through a sharp re-
duction in the operating expenses of
the government, further increase in
the higher brackets of the income tax
law and in the enactment of a gift
tax law, which would prevent the dis
tribution of huge estates before the
death by the donor to avoid the pay
ment of the federal Inheritance tax.
"The present federal income tax
Law does not place the tax burden
upon those best able to bear it and
therein lies its weakness. There is
no reason why the law should not be
so changed as to compel those whose
incomes run into the hundreds of
thousands and even millions to bear
their just portion of the load. Under
present conditions there is no excuse
for a dead line beyond which point
incomes are taxed on a flat rate basis.
"The proposal of Senator Reed of