Askov American. [volume] (Askov, Pine County, Minn.) 1914-current, 1933-03-30
HOUSE PASSES
INCOME TAX
Would Exempt Single and
Married Persons $12OO,
$1,000 Respectively.
Legislature Takes up Other
Important Tax Bills
for Action.
BY HJALMAR PETERSEN
from Pine County


panresentatiye from Pine County.
March 20 to 25)
After overcoming the hurdles OF
many committee meetings, one Dig
public hearing and considerable de-
hate on the floor of the House, the
statutory income tax bill, II. r. NO.
367, was PASSED by the House Satur-
day. The final vote was 1O2 to IL.
The bill now goes to the senate
where. if passed, the majority vote
will, of course, not be so great. IL Is
generally conceded that the income
tax bill will have much harder sled
ding in the conservative Senate.
When the statutory income tax bill
came I'D on the floor of the House
on special order Tuesday afternoon,
the merits of the bill were explained
and amendments were debated ana
voted upon all afternoon. The visit
TO the House Chamber by the large
Farmers Holiday crowd Wednesday
prevented action on that day and on
Thursday and Friday other bills
caused delay. However, as above
stated, on Saturday definite action
was taken by the House in which
amendments adopted raised the ex-
emptions to single persons from $1,000
10 $1,000 and the exemptions to mar
ried persons or heads OF tamllles'
from $500 to $4,000. Exemptions
for dependents were left at $3.50. The
rates of taxation on individuals were
left as originally embodied in the bill,
being 10 on the first thousand dol
lars, net earnings above exemptions,
11.G on the second thousand, 112E
on the third thousand, 1870 on the
fourth thousand, go on the hfth
thousand and graduated on upward
to sc on net incomes above ten thou-
sand dollars Certain corporations
that are taxed through other forms
of taxation were exempted but the
rates on all other corporations were
left the same as in the bill and
which are the same as those applied
to individuals. Corporations are eX-
empt $1,000.
Definite Replacement.
ing the bill on the ALLEGATION or re-
ceipts from the income tax which Is
effective as soon as it becomes law,
being retroactive to January l, 1888.
Originally the receipts were allocated
TO the state revenue fund and any re-
CENTS beyond needs of that fund
would go into the state school fund
annnnhod
all into the state school FUND put
some controversy arose on that
amendment and finally the amend
ment by Rep. l.. Ericsson OF Otter
tail county, allOcating the money to
certain specific state funds was
adopted. The amendment prepared
by Mr.. Ericsson and other friends or
the income tax, will have the rev.
enue replace taxes on general prop
erty for the one mill statewide road
tax, the 1.23 mill tax on general prop
erty for state school and university,
the state office building fund and
other minor definite charges placed
on real estate and personal property
for state purposes amounting In all
TO between 21a and 234 mills, esti-
mated to be approximately S4,OOO,OOO
on the present tax paying basis and
general property valuation OF the
state Any monies collected beyond
those needs through the state income
tax will go to the state revenue fund,
thus relieving general property taxes
to that extent. The Ericsson amend
ment was considered a good one and
went over almost without debate aft
er explanation by the sponsors. While
if can not be stated just how much
will be collected annually through
the state income tax, it is estimated
to be about S5,OOO,OOO each of the
two years, 1888 and 1894.
A Forward Step.
The income tax bill, if enacted into
law, will likely be the biggest rev.
enue producing measure passed by
this session of the Legislature and
will help to reduce general property
taxes. ii is a forward step in the
right direction. The purpose of the
tax is for more equalization of the
tax burden and the paying, of taxes
more On basis of ability to pay.
The tax is no injury to any taxpayer
for those who do not have the in
comes do not pay and it may truth
fully be said that this is one tax a
person is lucky to have to pay.
Some European countries have
gone almost entirely over to the in
come tax basis of collecting revenue
for governmental purposes and our
own national government collects be-
TWEEN one-half and two-thirds of all