The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1934-12-14
PLEDGED TO
TAX REFORM
Both Houses of Legislature Say
They Favor Action on Tax
Matters Next Session.

Matters Next Session.
Lief H. GilStad, writer for the Mime
apolis Journal, who seems to have line
on tax matters and possible acts of the
legislature on the subject has the fol-
lowing to say:
'MajoritieS in both houses of the
legislature are pledged to drastic reform
of the states tax system, indicating that
the legislature which meets January 8
is prepared to adopt tax plan designed
to relieve real estate of part of its
burden.
The attitude of members of the new
legislature is revealed in statements to
the Minnesota Taxpayers Association
Analysis of those statements shows a
clear majority in both houses is ready
to adopt some new tax. The problem
at the moment appears to be what they
can get together on.
Study of the views of the men and
women elected to seats in both houses
reveals a strong sentiment for gross
income tax in some form, although a
good many men lean to sales tax on
various luxuries to provide partial relief
rather than a more elaborate scheme
which might try to eliminate all real
estate taxes.
The lineup suggests a long battle be-
tween the legislature and Governor
Floyd B. Olson. He has declared that
the various proposals advanced for tax
reform gross income, dollar turnover
or whatnot-are in reality sales taxes,
and he will fight sales taxes to the last
ditch. He favorS higher income and in
heritance taxes.
Sentiment has not yet crystalhzed as
to the form the tax system should take.
There is the dollar turnover or gross
income tax, which suggests a levy of
one-half of one per cent on every dollar
business transaction sale of goods or
property, revenue from investments,
salaries or wages. Sponsors of this plan
have claimed that enough money would
be produced so that all other taxes ex-
cept automobile and inheritance would
be wiped out.
Or there might be a gross income tax
with various exemptions, leaving the
existing tax system on real estate and
special taxes. This might result in
lower real estate taxes, for example
if state and local governing units could
get substantial revenue from such a
source
| Or there would be a straight sales
tax, presumably drawn to exempt neces-
sites. That form of tax raises con-
siderable sums in many states, but re-
suits at once in controversy over where
the line is to be drawn between the
necessities and luxuries and brings ur
to the Governors contention that il
places undue burdens on the common
people.
One tax reform organization is cam
paigning for the dollar turnover tax
A new federation of organizations de-
string tax reform is studying various
plans in an attempt to agree on a pro-
gram that has chance of adoption by
the legislature.
| The Taxpayers Association quizzeo
the legislature and got some interesting
results. Out of 81 members of the
senate, Al responded, and their answers
show:
A total of IS "a majority of the
senate) favor "some new tax TO replace
real estate
Twelve men declare the system mus
be based on the present Setup, of net
income tax, with rates increased anc
base broadened to produce more
revenue
Twenty of the IS are inclined toward
the gross earning or dollar turnover tax
The others prefer plain sales tax. Ir
some cases the preference is for the
present. net income tax with higher rates
but agreeable to limited sales tax for
time in order to raise some revenue
On the house side, 103 members out
OF 131 answered on the question of tax
reform. The results are:
A total of &c Exactly a majority OF
the house, want "some new tax to re-
place real estate"
Twenty-Five stand by the net income
tax as the proper base, with higher