The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1931-01-09
ORGANIZATION To
OPPOSE SALES TAX
ORGANIZED LABOR AND RETAIL
MERCHANTS WILL FIGHT THE
PROPOSED SALES TAX-DU-
LUTH MAN ON EXECUTIVE
COMMITTEE.

Retail merchants of Minnesota and
organized labor throughout the state
have banded together to fight the en-
actment Of sales tax during the forth
coming session of the Legislature
Through the Statewide Association
opposed to Sales Taxes a vigorous
campaign will be carried on to prove
to the people and legislators alike that
it is impossible to improve the Mime
sofa tax system by introduction of a
sales tax, levy which has always
proved failure when adopted in the
past.
Under the auspices of Twin City and
Duluth retailers the State Wide Associ-
alton was launched last week, and
almost Immediately George W. Lawson,
secretary of the Minnesota Federation
Of Labor, issued statement announc-
ing that his organization and its men,
bers would oppose to the limit of their
resources any attempt to foiSt a sales
tax upon the masses of consumers in
Minnesota.
Members of the executive committee
of the Statewide Association Opposed
to Sales Taxes are George F. Williams,
Powers Mercantile Company, Minnea-
polls, Robert L. Brooks, The Leader,
Minneapolis, Hugo Hirschman, Ban
mons, Inc, st. Paul, S. W. Dittenhofer.
The Golden Rule, ST. Paul, and Ed
ward F Vail, George Gray Company,
Duluth
The state has been divided into Is
zones, each of which will be headed by
a prominent local retailer and who viii
act as clearing house for all sales tax
information in his territory
Pamphlets are being prepared for
general distribution and will explain
in detail how the sales tax would work
a tremendous hardship upon the con-
Stunning public and disrupt business
generally.
Under per cent sales tax as has
been proposed, the average $4,000 a
year man will pay practically per
cent of his income as the share of the
sales tax while the $4,000 per year
man will pay less than one per cent"
the anti-sales tax group announced.
The statements that a sales tax will
make possible large reductions on the
general property tax of the farmers
and small homeownerS is entirely mis-
leading. 1t is generally recognized
that a sales tax can not hope to raise
s50,000,000 a year in Minnesota and
that is the sum that would be required
if the real estate burden is to be
materially hghtened. In addition, the
average family man would find that
his sales tax payments would more than
offset any reduction he could hope to
get on his real estate. And finally,
there is absolutely no assurance that
the sales tax would be used as replace
ment revenue and not simply added on
to the already too heavy tax burden.
Independent merchants throughout
the state would be dealt a severe blow
by the enactment of the sales taxes.
Big mail order houses outside of Min
nesota would be able to ship their
goods into the state tax free and thus
have an unfair advantage over local
tradesmen, underselling them and
driving them out of business It is
impossible to overcome this difficulty
as the federal constitution prohibits
any one state taxing interstate COM
merce.
"A sales tax in Minnesota would be
a signal to new industries that this was
not the state for them, and already
established businesses here would
transplant their organizations This
would simply further aggravate the
employment problem and materially
set back any permanent economic adj
justment In time such as this. the
enactment Of sales tax, which would
be reflected in the rise of the cost of
living. can not be justified on any
grounds, even though experience in
other countries and states had not al
ready proved it to be an unscientific.
impractical, and unsatisfactory source
of revenue"
Legislative headquarters for the
Statewide Association Opposed to
Sales Taxes are being maintained at
1124 Minnesota Building, and inquiries
may be addressed to that Office or to
local retail merchants.