Askov American. [volume] (Askov, Pine County, Minn.) 1914-current, 1931-11-05


valued at 33 1-3 of true and full
value. and plated lands at 4O3o.
l favor the passage of an income
tax law in Minnesota on net incomes,
upon a graduated scale, and with
proper exemptions as to amount OF
income without any as to individuals
including public officers. l believe
that all homesteads should be exempt
from property tax up to $4,000. That
is to say, if a homestead is not worth
more than $4,000 it would pay no tax;
if it was worth more than $4,000, as
for example, $4,000, it would pay a
tax on $4,000 minus $4,000, or $1,000
That exemption would make the in
come tax a true replacement tax. 1t
would encourage the owning of homes
by our people, and l know of nothing
that | would rather accomplish than
to aid every family to own its own
home. 1t would also encourage the
owning of farms and would result in
a movement back to the farm, which
is vitality necessary because of the
present distribution of population as
outlined by me at the inception of this
speech.
Would RecIassify Real Property.
If there be legal objection under the
constitution to that plan because of
Article 8, Section 1 which provides
that taxes shall be uniform upon the
same class of subjects, then l be-
ieve that the real property classifi-
cation which now exists of O, agri-
cultural lands; and (2), plated lands;
should be extended so as to distin-
guish between homesteads and other
lands. When that Redistribution is
made, which would be permissible un-
der the constitution of Minnesota, then
| believe that agricultural lands
should be taxed on a basis of % lag
of the true and full value and city and
village property at 26 2-3% when, as
previously said, they are homesteads.
That would mean a tax reduction of
one-third.
Authorities on Minnesota taxation
whom l have consulted assure me that
sufficient funds could be raised by an
income tax with fair rates, to take the
place of moneys lost to the revenue
funds of the state and it's government
al subdivisions through the reduction
of the percentage tax rate on real
property.
Such a shifting of the burden of
taxation would greatly benefit the
homestead owner i'm the cities and
homestead owner in the rural COM
munities. 1t would also compel re-
duction of governmental expenditures.
1t must be obvious to you that have
included for exemption or reclassifi-
cation only occupant farm owners so
as not to encourage corporation or
chain farming.
In order to collect sufficient funds
for governmental activities it would
be necessary to empower the commits
sion collecting the income tax to re-
adjust or change the income tax, rates
during the first few years of its opera
ton to meet emergencies then arising.
Explains Rural Credit Finances.
The State of Minnesota has Rural
Credit bureau which has been making
loans to the farmers of Minnesota for
number of years. 1t has outstand-
ing as Civilizations of the State of Min
nesota, in bonds, the sum of $5S,250,-
900 which is divided into $33,0OO,OOO
in bonds sold to the public and $685.
100000 in bonds sold to the State of
Minnesota. Upon the bonds sold to
the public it is paying an average in
terest rate of .0446. Upon the bonds
sold to the state it is paying an aver
age interest rate of .O414, or an aver
age interest rate upon all bonds of
.0432.
Under the present law of Minnesota,
the state, acting through its Invest
ment board cannot loan money at a
lower rate of interest than 40.
The Rural Credit bureau is now
loaning money to the farmers of Min
nesota at 5A9o, plus 20 for amorti-
cation of principal. If interest on
loans was all paid it would have an
earning, to cover cost of operation, of
.O093.
If the interest rate on State-owned
bonds was reduced to go the average
rate of interest paid by the Rural
Credit bureau wiuld be .0383 and it
would be able to loan money to the
farmers at an interest rate of 3-4%,
with an earning rate of .0092.
If the interest on state-owned bonds
was reduced to go, the average rate
of interest paid by the Rural Credit
bureau would be .0340. It would then
be able to loan money to farmers at
4A%, with an earning rate of .OOS5.
If the interest of state-owned bonds
was reduced to 20, the average rate
of interest paid on all bonds by the
Rural Credit bureau would be .O296.
1t would then be able to loan money
to the farmers at 33-4%, with an
earning rate of .0079. The difference
between the latter rate of earning and
the present rate Of earning would be
made up in the manner hereinafter