The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1931-02-20
LEGISLATIVE LETTER ;
By r. W. HITCHCOCK
Publisher of rhe Hiboing Daily Tribune and ,
member Of the legislature.

God help the farmer The forty
seventh legislature Of Minnesota seems
doomed to do him dirt.
It's this way. Two years ago the
requests for appropriations from the
legislature were As million and when
the members got through introducing
appropriation bills that were pushed on
them by their folks back home and the
army of uplifterS at the capitol, the
total requests were more than 60 mil
lions This year the requests started
at so million, and at the rale the
Gimme" bills are coming in the total
requests may reach 10 millions.
If you think that the picture looks
dark for the taxpayer, look on this.
The best estimates available show
that the tax receipts of the state from
such indirect sources as the gross
earnings tax, the occupation tax, ETC.,
will fall off at least s2.500,000. The
receipts of the treasury decline, the
demands upon il increase. II the
legislature is tighter than the nearest
Scotchman that ever existed II song
or story, it now seems inevitable that
the Minnesota taxpayer will be called
upon next year TO shoulder an added
burden of taxation OF more than i've
millions
Mired already all too deep in cur
economic Slough Of DeSpond, these
facts constitute, next to immediate n
employment, the most serious situation
which confronts Minnesota at this
time.
The Income Tax.
Our one hope seems to be the in
come tax. So the people say. But VIII
the income tax save us, or will it push
us further down in the mire? Can 1t
be made to tap new sources Of revenue.
can it be made to ease the tax burden
on real estate by being in lieu Of some
portion of our present taxes, or will
it fail of that as it has in every other
state in which it has been tried, and
prove to be just another tax. How
many more taxes can We endure with
out being crushed under them?
Woe is US that we havnt any wis
dom about il to give you. But the
public prints are full of it, and many
are wrestling with the problem.
For amusement, if not for profit,
however, let us bring you something
that is not original with us but which
we have borrowed to pass on TO you.
If it is wise it may do us some good;
if il is foolish, it is not more foolish
than many other things that leglsla-
lures have memorali0ed congress about.
Briefly it's this Double the present
federal income tax. IF it works, that
viii produce approximately three bill
lion dollars Distribute the money to
the state. It Will relieve the tax payers
Of the state Of the total cost OF public
school education, the largest single
item in our tax bill Eureka, there
YOU have it! However fantastic this
scheme may seem, there is one sound
principle in it; viz, that the taxation
of incomes is better done by the nation
than by the state. One Of the serious
objections to a state income tax Is that
il inevitably sets up barriers to business
at the state borders.
Whose Ok Is GOred.
The bank problem is serious one
in Minnesota. When the legislature,
some years ago, enacted the money
and credits" law it unwittingly relieved
the banks of the state Of their taxes.
How? Don't ask us; We might ex-
plain but the length of the explanation
would weary you. Sufficeth to say, the
supreme court says that's the way It
is. and that settles it. Minnesota mas
been making strenuous efforts to fix
the thing I'D so that the banks Of the
state may be lawfully required to pay
an adequate tax. But it's difficult
business. and it isn't fixed up. Mean
while. by agreement, the banks have
: been voluntarily paying the old tax.
That Is. all but a few Of them
It developed the other day that John
N. Peyton Governor Olson's appointee
as Commissioner Of Banks, is the head
of one of the few banks that refuse TO
paw. Everybody agrees that Mr.. Pey-
toms appointment IS a first class selec-
ton. but the fact that his bank did
not pay the tax, that it was tax
holdout, is embarrassing.
The senate has been debating the
predicament. Our guess is that Mr.
Peyton Will be confirmed, as he ought
% be, and that all the farmer-labor
senator's will be found voting yes. But
,oy. if a republican governor had ap-
,ointed as Commissioner Of banks the
head of a bank that had refused TO
,ay the tax what squawk those dis
inguished farmer-labor senator's would
ave put up!
Minnesota Gag Law.
The house this week debated bill
repeal the so-called Minnesota gag
lv. the law which by the very fact
its existence and without legal ac-
on. put the nl-fanled Rip Saw 'of
uluth out of business. The wordy
,ttle ragged for two days, when the
II for the repeal came to vote and
ON out with SO votes, just two votes
ore than the necessary Sc.
REPRESENTATIVE R. r. Davis of Wnkln
ade a gallant fight for the repeal OF
law. Two years ago he waged the
tile almost alone but this year his
mpatriots in the farmer-labor ranks
ok I'D the fight for him, and he re-
wed reinforcements from the oppos-
On. The argument, falling most sur
lsingly from the lips of Repre-
native Edward Scallon, who frankly
nits that he represents the iron
ming interests in the legislature, the
rument that the Minnesota gag law
uits government by injunction, won
IS for the repeal of the law Re-