Askov American. [volume] (Askov, Pine County, Minn.) 1914-current, 1933-03-16

place this amendment would give the
Legislature greater authority. Under
this amendment the power to impose
inheritance taxes would be unlimited
and any form of gross earnings tax
would be valid.** With this amend
ment various new forms of taxation
could be imposed, notably an income
tax.** Such tax, If imposed, should
be progressive, which would be valid
under this amendment"
| H. F. No. 367, the income tax bill,
is similar to the bill introduced in the
1881 session, but with number OF
improvements. 1t is patterned after
the federal income tax law and in
drawing up the bill there was much
study also of state income tax laws
of other states by Professor H. Rott-
schaefer of the University, who de-
voted no little time in the drafting
| if the $1,000 word document. Sem
ator Robert C. Bell likewise has given
much assistance in the drafting OF the
bill as has also Geo. E. Wallace Of
the Minnesota Tax Commission, Rep.
Lewis Herfindahl of Benson, and 9TH
ers. Senator Spindler of Buffalo. has
been one of the men working in be-
half of the income tax and like Sem
ator Bell, has written number Of
articles and given many talks in its
furtherance. Time and effort has
also been devoted by such men as
Representatives VIM. Merrill, East
void, DeParcq, Cravens, Halverson.
Thielen, Geo. w. Olson, Stockwell,
Goetsch, Davidson, o. K. DAZZLE, At
wood, w. E. Day, Lockwood, Melby,
Syreen, c. Elmer johnson, and others.
The bill has overcome the many
hurdles in the tax committee, having
been discussed at a half dozen meet
ings, and one big public hearing was
held recently in the House Chamber.
Besides the representatives and sena-
tors mentioned, most of whom are on
the Tax committee, several others
will likely take an active favorable
part in the discussion on the floor of
the House and Senate before the bill
reaches final vote.
No Worry for Average Person.
Folks with small earning capacity
need not worry about the state in
come tax hurting them. The exemp-
tions are $1,000 to single persons and
81, 500 to married persons with an ad-
ditional $3.50 exemption for each de-
pendent. On earnings above exemp-
lions, the tax is 10 on the first 1000
dollars, 1A9 on the second thousand.
1h% on the third thousand, 1A%
on the fourth thousand, 2%o on the
fifth thousand and graduated on up
ward at 21a, 3, 31a, 4, Az and flat
above the exemptions. There are de-
auctions for gifts to charity and other
like deductions, but, generally speak
ing, if single person has a net in
come of $500, he would pay tax on
$500, being exempt $1,000, and so his
tax would be but SIS. If a man with
wife and three children had net
income of $2750, he would be exempt
$2250, paying tax on $500, or flat
SIS. Corporations are exempted $1,000
net earnings and on amounts above
that would pay the same as the indi-
yidual income tax rate. The need for
state income tax is apparent and
there should be no dilly-dallying and
delay. The progressives are here to
enact an income tax law in this ses-
sion. The House will likely vote on
the measure next week.
DiScuSSpS License Tax
DEPRESSING briefly on other taxes,
it might be we'll to touch upon the
motor vehicle tax. 1t would have
been an easy matter for the Legisla-
ture to have cut that tax 500, or
Just in half 1t would be the simplest
thing in the world to do and those
voting for it might have been her
aided by many as real leaders, econo-
mists and statesmen. But will it help
unemployment if public works are
practically stopped? We must try to
increase employment rather than to
diminish it, for the unemployment
situation is fundamental and one OF
the greatest causes of our present
economic plight.
The thing that the Legislature
should be concerned about is the cut
ting of taxes on old and inexpensive
cars, in other words, cutting the mini.
mum down to So on old cars weighing
under 1000 pounds and down to 81 on
old cars weighing over 1000 pounds
leaving the tax on other cars as is
and as embodied in the bill already
passed by the House. The Senate
passed a straight 500 cut on all cars
and the matter is now in conference
without adequate funds. highway con.
struction will be curtailed.
The automobile tax is one of the
easiest taxes to collect, while the
real estate tax-on homes and bus.
mess places-is a different PROPOSE
tion. General property taxes are
those we must endeavor to cut. If 8
person does not want to pay an auto
mobile tax he can easily get out o
that by not owning car or setting
aside the one he owns. His home Of
place of business cannot be set aside