Askov American. [volume] (Askov, Pine County, Minn.) 1914-current, 1931-10-01
Need for State Income Tax
Becomes More imperative

NOTLu DdkOtd A.ooO vi ilS pOpuldlloH
was affected and $3.50 of Wisconsin
people paid state income taxes in
1925. The majority of the above men,
toned taxpayers were listed In the
lower brackets-those paying the
smaller taxes. About $3.50 of Mime
sofas population will be benefited by
the adoption of the state income tax
system here.
The average per capita yield
through state income taxes in Is
states increased from $2.6S in 1922 to
$3.50 in 1928. In 1927 the average
ratio of income tax collections to total
state and local tax collections was
so. 1t ranged from 1ro in Montana
to 1870 in Wisconsin. The latter
state is a pioneer in income taxes,
having had this system for over 20
years, and has made improvements on
it right along. The per capita yield
in Wisconsin in 1928 was sell.
Tangible property-real estate and
personal-in Minnesota yielded an in
come of $4OO, 100000 or $3.50 of the
total income in the state for 1929.
1t paid $50 of the taxes, or approx
mately $138, 100000. Intangible prop
erty paid go of the taxes. Salaries,
wages, fees, fee-paid professional per-
sons, commissions, commission-paid
brokers, statesmen and agents pro-
duced $40 of the income, but bore
no part of the state and local taxes.
The latter group paid only a portion
of the $2S,OOO,OOO federal income
taxes.
Tax Levies Have Been Cut.
Reductions have been made in local
Last spring township levies alone
were reduced $1,250,0OO or about 1870
under that of 1880. County levies
were cut about two million dollars
this year. But even though the levies
are cut to the bone it still leaves
general property paying a dispropor-
tionate share of the taxes. Gas taxes
have provided funds for the building
of some roads in townships out over
the state and has made it possible to
cut road and bridge levies, resulting
in less general property taxes. A
state income tax can pay part of the
school tax and thus further reduce
general property taxes. Education is
not local problem anyway, it is state
and national in scope. Whatever is
derived through a state income tax
must be used to lower the real estate
tax and not for the creating of fur
Their expenses.
| There has been an appalling in
crease in delinquent taxation out over
the country, and. this condition is
bringing leaders to realization of
the revolt that will come unless con-
ditions are changed and the taxes on
real estate are lessened. There is an
awakening to the fact that the states
cannot continue to place an unfair
share Of the burdens of government
on real estate and personal property.
Income Tax Not Harmful.
Generally speaking, taxation should
be placed where the biggest profits
are made and where the individual is
best able to pay. There is NO getting
away from the fact that if a person
paid, say for instance, 500 income
tax On $4,000 income, he would
rather have an income of $4,000 and
pay $500; he would rather have an in
come of $4,000 and pay $1,000 tax,
and so on up the line. That tax is
not q detriment and will not tend to
slow anyone up in business.
Non-residents of Minnesota partici-
pating in the profits of this state
would under an income tax system
contribute toward our government ex-
pense. Many states today are benefit
ing from such law.
The income tax will make for
more systematic equalization of prop
erty valuations. Under this system in
come earning property would be taxed
more heavily than property earning
little. The former would bear both a
property and income tax, while tho
latter would bear only a property tax
Though largely an agricultural
state, Wisconsin, where the income
tax has functioned successfully for
over twenty years, had net increase
of $50 in manufacturing income
during the years from 1922 to 1926.
The national average was $3.50 dur
ing the same period. This shows that
the income tax will not drive BUSH
ness from the state. :.
More on Pay Y Ou.Go Basis.
The per capita Indebtedness for all
governmental units in Wisconsin is
less than one-half as great as the
average per capita Indebtedness for
the entire country. The bonded in
debtedness in Wisconsin in 1928 was
about $152,OO0,0OO while in Minnesota
it was 100000. The general prop
erty tax for 1880 in Wisconsin was
S41.60 per capita while in Minnesota
it was $48.39. Wisconsin paid her
soldiers bonus out of the income tax
while Minnesota paid hers out of a
bond issue. Minnesota has lacked
leadership in bringing about state
income tax much earlier.