Askov American. [volume] (Askov, Pine County, Minn.) 1914-current, 1934-09-13
Propaganda Being
Spread for A New
Tax on the Masses
Continued from Page ~

Continued from Page ~
1t is being presented very sweetly as
a sugar coated proposition but should
be looked into carefully by those to
whom it may sound good.
1t has been argued if one-half of
one percent were collected on the
dollar turnover that that should be
enough to eliminate all other taxation
in the state. The total wealth of the
state of Minnesota is approximately
nine billion dollars. The annual gross
income is less than one billion. The
dollar turnover is between ten and
twelve billions but it would require a
dollar turnover of 81 billions at a
rate of taxation of one-half of one
percent to produce the $4,000, 900
needed annually for the state, all
counties, school districts, cities, vii
lagos and townships.
One tax only, and that but one-half
of one percent on the gross income of
the individual or business sounds
good. On a $1,000 individual income
that would be but SIS and on a $4,000
income but $40. Fine chance of any
such taxation over night! 1t is ridi-
culous, especially when we stop to
consider that folks with incomes of
$1,000 to $4,000 are usually paying
total taxes of from 500 to 5000 on
personal property and real estate.
Indirect Consumers Tax.
The indirect tax in this gross in
come or dollar turnover proposal is
the one the advocates feel the I'M
suspecting public will overlook. A
direct tax bilI-one you can see and
where you know what you are paying
is the better one. 1t is at any rate
more open and above board. 1t is not
blindfolding the public.
Let us go behind the scenes in the
gross income or dollar turnover tax.
The head of a family with $4,000
income may be obliged to spend most
of that money each year for the main
tenance of the home and the susie
nance of his family. He will pay the
one-half of one percent on his gross
income which will be the small sum
of $40 under provisions of that scheme
of taxation. But when he makes pur-
chases of clothing, shoes, groceries,
meat, furniture, repairs, fuel, etc., he
will pay the gross income taxes
passed on from the manufacturer.
distributor, wholesaler, retailer, and
others right down to the consumer.
That wild make for taxes of from 2
to percent on all his purchases.
That is the insiduous, indirect and
concealed tax-the burden on the
masses.
The gross income or dollar turn
over which is another form of sales
tax, is wrong in principle, unjust, UNI
scientific, and a tax on the mass of
citizens already overloaded with taxes,
both direct and indirect. 1t will be
shifted onto the backs of consumers,
farmers, and workers through in
creased prices on the merchandise
that they buy including the necessi-
ties of life. 1t will discourage buying
and in times of depression like the
present will cause stagnation in trade.
PrOgressives Against Sales Tax.
A study of various efforts of con-
servative and reactionary groups in
America to put over some form or
other of a sales tax system is en-
Tightening. On the one hand we have
liberals and progressives opposing the
sales tax system, while on the other
hand we have those interested to a
greater degree in property rights ad-
vocating such system.
1t is to the credit of President
Roosevelt when attempts were made
to put over this vicious tax system
nationally that he gave notice to the
reactionary forces in both the Demo-
cratic and Republican parties that he
was opposed to the same. Governor
Olson performed the same service for
the consumers of this state in 1881
when the Interim Tax committee, sent
out recommendations for a sales tax.
He punctured the idea when he came
out in no uncertain terms opposing
the sales tax.
The merits or dement's of a pro-
posed law, and as to how 1t Will eff
feet the masses or those of wealth,
can generally be judged by looking up
who is for and who is against it.
U. S. Senator David Reed of Penn
sylvania, one of the most reactionary
lawmakers in America and an intim-
ate friend and political associate of
former Secretary of the Treasury An
drew Mellon, is strongly advocating
national sales tax.
ReactiOnarieS for Sales Tax.
Former Senator Reed Smoot of
Utah, has been for many years an
advocate of the sales tax. He and
his associates we'll know that this tax
will produce federal revenue in at
tractive quantities. 1t will relieve