Askov American. [volume] (Askov, Pine County, Minn.) 1914-current, 1932-08-25


has real value.
Dwellings on the tax inequalities
in Minnesota, Governor Olson said
that taxes were primarily placed on
land, and that was all right in the
pioneer days when there we're few
other sources to tax. Today land
only has value when it produces in
come or revenue. The railroads In
Minnesota pay a gross earnings tax
on the basis of what they take in
which is a favored stand as COM
pared with general property tax
which must be paid whether or not
there is any revenue.
Spent Less I'm 1881.
The state administration spent less
money in 1881 than did the previous
administration of 1880 and yet the
state tax rate on general property
did not go down. The state gets be-
tween eight and nine cents of every
tax dollar and much of this reverts
back in state aids to schools and
roads. On account of the railroads
taking in less money in this man
made depression the state received
in 1881 three and one-quarter million
dollars less revenue from that source
than in 1880, and there was less rev.
and other sources. Without an in
come tax there was but one other
place from which to derive the lost
revenue and that was in the general
property tax, and hence the higher
state tax rate.
There are three remedies for this,
said the governor: Cutting public
expenditures, fair assessments, and
the income tax. The moneys and
credits tax which takes a three mill
rate is not squarely assessed. The
state loses thousands of dollars an
nually on the moneys and credits
tax because it is not all reported.
An investigation was recently had on
this form of taxation in the Twin
Cities, and out of II large corpora
tions examined Is volunteered to pay
up their moneys and credits tax i'm
mediately, and they paid 1900 more
after the investigation. The trouble
with the moneys and credits tax, said
the speaker, is that it is too easy to
evade. The law should be strength
ened.
None Against Replacement.
The governor is championing the
state income tax and said that this
is fair and equitable tax, based on
ability to pay. Opponents of the tax
are still throwing up the bugaboo
about replacement and talking about
wanting that in the constitution
though it is not in the constitution
of the federal government nor any
state where they have that form of
after the constitutional amendment
has been adopted by the people must
make it replacement tax, that is,
lower real estate taxes, said the gov
ernor, and added that he would veto
any bill that did not make it a re-
placement. The governor caused
much laughter, when after telling
about all this replacement talk by
the opponents, he added, Il have not
found any person in the state who is
against replacement" He also showed
the fallacy Of the offset provision pro-
posed by Republican leader-Sena-
tor Rockne-just another scheme to
save the wealthy.
Governor Olson said there is a
sharp cleavage-two distinct trails
between the Farmer-Labor party and
the Republican party on this cam
paign issue of the income tax. The
voter can choose. The income tax
will shift part of the burden of gem
eral property tax to income and from
one group of people to another-to
those who are in better position to
pay. The Republican platform is
neither for nor against the income
tax, said the speaker, and how far
betwixt and between is not known.
This form of taxation. badly needed,
is too popular for the party to be
against in order to get votes so it
maintains sort of silence as far
as the platform is concerned. Repub-
lican campaign funds are paid by
those who are to pay the income tax.
Good Incomes to Collect From.
Even in times like these $4,000, 900
or more can be collected annually
through state income tax in Mime
sofa. This would cut down the real
estate tax on homesteads-f build
ings and 80 acres-and residences in
villages and cities approximately one
third
One of the best cures for the eco
nomic inequalities and iniquities that
exist in this country is the intelligent
use of the taxing power, a power that
is inherent in every government.
This taxing power can be used in
telligently to break up the concen-
trofinn IF moo1fh