Askov American. [volume] (Askov, Pine County, Minn.) 1914-current, 1933-01-26
INCOME TAX
BILL NOW UP
Sponsors Will Work for
Adoption of Statutory
Measure.
Legislation Wheels Grind
ing Fast in Third Week
of Session.
BY HJALMAR PETERSEN
Representative From Pine County


(January 10th to 21sD
The statutory income tax bill was
introduced in the House on Thurs
day, Jan. 10th, by the writer and SO
cO-authors. 1t will be sponsored in
the Senate by Senator Bell of De-
troit Lakes. Senator Spindler of
Wright county and Rep. Herfindahl
OF Swift county are amongst the
leaders for this improved form of
taxation. The bill as introduced is
estimated to collect $6,000,000 or more
annually if it becomes law. The tax
is applicable in 1888.
IL enacted and approximately &c.
100000 is collected, it will mean the
enue fund in the amount of approx
mately three mills, reducing general
property taxes to the extent of the
amount collected through the income
tax. This makes it a definite re-
placement tax.
If in later sessions of the Mime
sofa Legislature the rate of taxation
and more money is collected from this
source of taxation than is required
for state revenue purposes, then such
funds will go to the public schools Of
the state in proportion to school at
tendance. Provision is made for that
in the bill. This will make for fur
Their lowering of tax levies on real
estate-homes, farms and business
piaces-thus making it a replacement
tax.
The exemptions in the bill call for
$4,000 to single individuals and 1880
to married individuals, and there is
also further exemption of $3.50 for
each dependent under Is years. Thus,
if a man were married and had three
children he could earn S2.250 before
he would pay any income tax. The
rate of taxation over the exemptions
is 10 on the first $1,000, 1149o on the
second $1,000, y 70 on the third $1,000,
IA % on the fourth $1,000, 29o on the
fifth $1,000. and graduated on up to
where it is SO on incomes of over
$4,000.
In the statutory income tax bill in
trOduced during the session of 1881
corporations were taxed a straight
SO on their net earnings. The bill
introduced now gives an exemption
of $1,000 to corporations and the
same graduated tax as applied to in
dividuals, commencing with 10 on
the first $1,000 and graduated up to
maximum of so. Provisions are
made in the bill for the taxation of
interstate commerce, firms with
Headquarters in other states or cOun-
tries doing a business in the state of
Minnesota, etc.
Amendment Had Plurality Vote.
The proposed amendment to the
constitution for a state income tax
lost in the election of November 8,
1882, for the simple reason that it
did not have majority vote of all
the votes cast at the election. Many
voters failed to vote either yes or no
on the proposition and failing to vote
on a constitutional amendment has
the same effect as no vote. How
ever, there was a plurality vote OF
approximately 10000 on the amend
ment, thus showing that those who
had given some thought and study to
the subject were in the majority for
such an advanced step in taxation.
The reason for having the constitu-
tional amendment submitted to the
voters in the election of 1882 was
because some people were of the
opinion that graduated income tax
would be unconstitutional in this
state without amending the constitu-
ton. The attorney general, however,
in 1891 gave out as his opinion that
a statutory income tax would be con-
stitutional in this state without
amending the constitution. There
fore, proponents of this scientific form
of taxation-taXing more in accord
ance with ability to pay-are forging
ahead and working aggressively to
have it a law on the statute books OF
Minnesota before this session ad-
journs.
Experience in the "a states of the
Union that now have income tax
show that the cost of collection is In
expensive, running between and
per cent of the amount collected.
The neighboring state of Wisconsin
has gotten the cost down to IL
per cent of the amount collected. The
federal government has had the in
come tax little over 20 years and
of late years has collected through
the income tax approximately two
thirds of all the money expended by
the federal government.
Continued on Page 81