Askov American. [volume] (Askov, Pine County, Minn.) 1914-current, 1932-09-15
TAX
is EXPLAINED
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| III LA Ak1x1NLD
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5O4 individuals who had each a net
income of over one million dollars.
Some of them had. five millions and
few ten millions of net income, the
average of the 504 being approximate
ly two million dollars net income for
the one year.
Democracy or PlutOcracy.
| The issue in this campaign, said
Mr.. Bell, is Democracy or Plutocra-
cy." In the olden days they were
called pirates but today some of the
same type are referred to as captains
of industry. 1t is an indictment on
our present leadership. The federal
reserve system is all right, its original
intentions and purposes, but it is adj
ministered by Wall Street. There
should be more of the principle of
Thomas Jefferson, Equal rights to
all, special privileges to none"
| Excessive taxation is one of the
causes Of the bad times and there
should also be change in the tax
gathering system, said the speaker.
There is now total of $4,000, 900 tax
sofa and in some townships it runs
as high as 80 per cent delinquency.
Some folks are paying too much and
others not enough taxes. The tax
gathering system is antiquated. In
the early history of Minnesota there
was practically only tangible property,
that which was visible and the gen.
eral property tax then was fair
enough. But IS years later, today, it
is different with large business in
terests, stocks, bonds, and metropol-
itan centers. The discrepancy in some
taxes were shown. For instance a
farm with an assessed value of $4,000
would pay tax of $642.2O On the aver
age rate over the state while $4,000
in moneys and credits like certificates
of deposit, notes, or other valuable pa
pers would pay tax of only $30-the
three mill rate. The real estate would
pay little over two cents on the
dollar of full and true value while the
cash or valuable paper would pay but
three mills on the dollar.
Tax on Ability to Pay.
The tax on railroad property has
been abolished and the railroads in
Minnesota pay on gross earnings-fve
per cent-fxed by law. When the
earnings go down the tax goes down,
and the same holds true of the mining
industry as regards the Occupational
and royalty taxes. That is the un-
fortunate part of the general property
tax said the speaker for when there
is less tax revenue from the railroads
and mines, the loss is applied on real
estate, and so that tax goes up when
the other goes down, and Governor
Olson did not increase the state rate.
He is not to blame for it. More taxes
should be paid on an income basis,
ability to pay, which would be fairer
all around. Real estate in Minnesota
which produced $3.50 of the states
income of $1,60O,0O0 900 in 1929 paid
more than $50 of the taxes, while
wages, salaries, commissions, fees,
and intangible property which pro-
duced the other 1870 of income paid
less than go of the state and local
taxes. More taxes should be placed
on the 1870 of income and thus re-
lieve the real estate, said the senator.
European countries have practically
taken off the property tax and re-
placed it with the income tax. The
income tax amendment to the consti-
tuition to be passed on by the voters
this fall is very important one and
should be adopted, said the speaker,
and he also advocated the adoption of
the three other amendments coming
up on Nov. Sth.
The Replacement BOgey.
The income tax amendment was not
hurriedly drawn up. You have heard
about the cry for a replacement guar
antee in the Observation-Disclosures
money is collected by the income tax
route should be used to lower other
taxes and that this provision should
be embodied in the constitution, said
the speaker. This cannot be done, he
continued, and it is not in the consti-
tuition of any of the other "a states
that have it nor in the federal consti-
tuition. There are four layers of gov
eminent outside of the federal-the
state, county, school district, and city,
village or township. If for instance
the total tax on home was 5000 and
there was provision in the constitu-
ton to use the revenue from the state
income tax to wipe out the state tax
on real estate, and assuming the
states portion of the 5000 was $40,
then it would be replacement and
the real estate tax on that home
would then be $3.50. But in spite of
that replacement paragraph in the
constitution there is nothing to pre-