Evening star., 1932-03-08
BY MALCOLM CUTTING.

| BY MALCOLM Ct IINp'
! Special Dispatch to The Star.
MINNEAPOLIS, Mimi, March D
(N.A.NA)-When Minnesota taxpay-
ers revolted last year and slashed
nearly s80oo,0oo from local tax levles
PAYABLE in 1892 they performed 1eat
unioue in public finance Also, they
displayed to suffering taxpayers every
where an object lesson in the new art
the Minnesota Plan" of quick ana
painless tax extraction.
, Much has been written on the stag
gering cost of Government and It's un-
| bearable tax burden on the people
Frequently it is said there is no rem
edy, that the people are helpless and
governmental costs must continually
ascend.
But there is a brighter side to the
picture, disclosed by scattered States
where taxes have been radically re-
duced.
Indiana. Iowa and North Carolina
stand among the leaders III cutting
millions from their tax bills. They
have done it by legislative enactment
administrative economy, organization OF
taxpayers, in some cases extending back
several years. In this series the meth
ods and accomplishments OF these
States will be assembled and analyzed
But first is described Minnesota's re-
volt. Without favorable legislation
without improved governmental admin
istration, taxpayers of farm, village
and city arose in their might and de-
manded that taxes be brought down
In determined, one-year campaign
with only two years organization, they
saved S780O,OOO in local taxes to be
paid this year.
Burdened by Property Tax.
Minnesota, like other States. has
been groaning under general property
tax, constantly increasing, whose base
is the valuation of property without re-
gard to earning capacity. From this
source nearly 80 per cent OF all Mime
sofa taxes Is derived.
From 1914 to 1880 the total tax
levied on property in Minnesota in
creased from S47.600,000 to $l31 ,000,-
O0O ITS per cent, while assessed valu-
alton increased only 20 per cent. In
the same period levies for general reve-
nue. funds advanced $50 per cent, for
highways $50 per cent and for schools
$50 per cent.
But in Minnesota. as in most States.
90 per cent of the taxes on property are
levied by local taxing units-counties,
cities and villages. townships and school
districts. The State takes less than 10
per cent, though it collects four times
as much from other sources. In local
expenses of government school districts
lead. followed by municipalities, coun-
ties and townships.
That was the situation in 1880 when
the taxpayers began to mobilize. For
several years there had been Mime
sofa Taxpayers Association, but its
representation was meager. its activi-
ties few. Not until decision was made
to organize the counties two years ago
did people begin to realize that they
held the solution OF the problem In
their own hands.
Public Appeals Made.
By radio, press and address tours in
rural districts, the gospel of tax re-
duction was carried to all the people.
They were told the only possible way to
lower taxes was to reduce government
expenses. They were urged to organize
in county units, to control local expend-
itures, and so to stem the tax flood
at its source.
From farm, village and county seat
eager taxpayers rushed to join the new
movement. All property owners were
welcome, farmers and business men
alike. They elected officers. directors
representing all taxpaying groups In the
county, special Advisory Committee
with at least one member in every
township, village and city, and State
delegate to tie up with the State As
sociation.
In the Spring Of 1881 came chal
lenee from the Legislature. When 1t
adjourned, despite all pleas of the Min
nesota Taxpayers Association, its ap-
oropriations for State expenses increased
the State levy on general property 40
per cent
BY then, however, more than 40 Of
Minnesota's 81 counties had organized
taxpayers associations. A new spirit
animated the people. Failure Of legis-
lative. relief served merely to redouble
attention to local expenditures. In tax
ing units everywhere local officias were
petitioned to trim budgets and reduce
levies.
This agitation had immediate, If in
adequate, effect. At township meetings
in March, 1881, a million dollars was
cut from the levies of the previous year.
In July the County Boards dropped
million and half and other taxation
divisions brought the total reduction TO
$4,000, 900.
But this was far from the saving the
taxpayers had contemplated. Every
week saw new county organization,
until there were II. In many counties