Askov American. [volume] (Askov, Pine County, Minn.) 1914-current, 1933-03-16
REP. PETERSEN GIVES
RADIO TALK ON TAXES

Tax Laws In the lower House OF
the state legislature and spon-
sor in that body of the Statutory
Income Tax bill. talked on taxes
| over the Twin City radio sta
ton. WCCO, last Thursday at 1880
D. m. His talk was sponsored by
the Minnesota Taxpayers associa-
ton. The text Of Mr.. Petersen's
talk follows:
The statutory state income tax as
proposed in this session of the Min
nesota Legislature, when enacted into
law, will be much like income taxes
in other states, that is, supplementary
to the federal income tax. The fed
eral income tax as now exists, has a
high rate which should have pre-
vailed between the years of 1924 and
1880 when great fortunes were
amassed and wealth greatly central
lied. With high federal collections,
the rates on state income taxes can,
of course, not be SO high. Half the
states of the Union now have state
income taxes but Minnesota has been
tagging in this newer, more advanced
and better form of taxation. The in
come tax method of collecting reven-
nue. for governmental purposes is, in
my opinion, far superior and much
more scientific than collecting taxes
on general property. The tax system
can, of course, not be changed over
night nor in year or two, but grad
| ually as more taxes are collected
through the income method the taxes
on general property can be lowered.
During the campaign of 1892 and
since the Legislature met on January
Bird of this year, there has been much
space devoted in some conservative
newspapers and other publications to
that DOGGY word replacement" There
is no such thing as a guaranteed
replacement of proceeds from an in
come tax, either by law or in the Con-
stitution. If such were possible, is it
not strange that it Is not embodied in
the federal constitution nor in the
constitution of the many states that
now have the income tax?
To Be Used as Replacement.
The State Legislature is a tax levy
| ing and tax spending body which also
| holds true of the boards of county
comm issioners, city and village coun-
ellis, township boards and school
boards. If, and when the funds col
lected through state income tax are
used to lower other taxes, such as
real estate and personal property
taxes, then it becomes a replacement
tax. To be sure, any monies col
lected through state income tax in
1888 and 1884 will be used for just
that purpose-that of lowering gen.
eral property taxes. And as for the
future, that depends on the type of
citizens elected to the Legislature
the county boards and the various
other tax levying and tax spending
bodies to which the income tax money
may be allocated. 1t will always re-
main so.
| We are vitality interested in the
success and welfare of our children
but some day they grow up and some
day the parents pass out of the pic
ture and the children must go on
! for themselves. Their welfare and
in the constitution.
The Legislature in this session, has
already made cut of about $3,000,00
on appropriations for Is state insti-
tutions. The total savings in this
session may run up to 100000 900. AT
any rate, nearly all the lawmakers
irrespective of political party affilia.
tions, are here to cut taxes and to
practice economy.
Income Tax Is Constitutional.
AS for the constitutionality of a
statutory state income tax, that mat
ter has been brought out so definitely
on several occasions that little time
need be spent on that phase of the
income tax story now. Henry N. Ben.
son, former attorney general, gave
out as his opinion in 1881 that a
statutory income tax would be consti
tutional in the State of Minnesota
without amending the constitution
At my request, Attorney General
Harry H. Peterson gave out as his
opinion, a week ago. that the tai
would be constitutional in Minnesota
a tax such as proposed in House File
No. 367-the statutory state income
tax bill. In the opinion by the at
torney general, which covers severa
pages, and which was prepared
through the help of Assistant Attor
ney General VIM. S. Erwin, was en-
bodied an opinion given out in 190(
by the late Mr.. Young who was theI
attorney general of the state and re
garded as one of the ablest attorney!
to hold that high office.
In statement which was furnished
pursuant to law prior to the adoption
of the 1906 constitutional amendment
for Minnesota which authorizes thu
enactment of a statutory income tax
Mr.. Young is quoted in part as fol
lows:
1.-The purpose and effect of thi'
} amendment would be to greatly en-
, large the power of the Legislature
, with reference to the subject of tax
ation.** Should this amendment b.