Askov American. [volume] (Askov, Pine County, Minn.) 1914-current, 1934-09-13

During depression and readjuStment
periods, such as we are passing
through, there are many and varied
proposals for remedying the situation
through new taxation schemes. But
that is that we cannot squeeze blood
from turnip. There is no use of
trying to pile still more taxes onto
the backs of the consumers for it will
not work. When we tax profits, as is
the case in income, estate, gift and
inheritance taxes, we are getting at
the right source. When we tax buy
ing power we are SLOWING up business,
making it harder for the people of
modest incomes, and retarding the
return of prosperity.
A Tax That Does Not Hurt.
In the state of Minnesota the net
graduated and progressive income tax
was made law in the 1888 regular ses-
sion of the Legislature. 1t exempts
from income taxation single persons
to the extent of $1,000 and married
persons $4,000. There is also the
exemption of $3.50 for each dependent
and deductions for payment of other
taxes, money paid out to church and
charity and other minor deductions
before the tax is applied which is
graduated from 1 percent up to 5
percent. Corporations have $1,000 ex-
emption and the same rates as in the
case of individuals apply.
Tho oyop,rtiopS rora o6nY,tod no
cause folks of modest incomes have
enough general property taxes to pay,
if not directly then indirectly in rents.
The receipts from the tax go to the
public school system of the state on
the basis of children of compulsory
school age residing in each district,
and it is thus distributed evenly out
collected. The school burden being
greater than the township, village,
city, county or state, the income tax
money goes to the fund where most
needed and is a replacement tax as
much as is humanity possible to make
it by constitution or statutory law.
In the Right Direction.
The receipts from the net income
tax in Minnesota for the year 1888,
payable in 1884, will amount to ap-
proximately s2,0OO,OOO. This is not
nearly as much as the tax would
amount to in normal times, if the
wheels of industry were moving and
folks were earning more, even with
the same rates of taxation, but it is
step in the right direction. 1t must
also be remembered that it required
years of education and agitation to
get this law on the statute books.
1t is written without constitutional
limitations and can be amended when
need be. The rates of taxation, ex-
emptions and deductions can be
amended at any session of the Legis-
lature when public sentiment demands
it. 1t is tax based on ability to pay,
levied on folks who earn enough so
tax on profits, and a tax that any
one should be glad and willing to pay.
Trying to Shift Tax.
History proves that in states where
the net graduated and progressive
income tax has been made law it is
usually followed by an attempt to pass
sales tax, gross income or dollar
turnover tax or some such form of
taxation that is tax on the con-
sumers-the masses. The net income
taxpayers would like to get rid of the
income tax or make it less effective
and pass the tax onto the masses in
other forms.
And so in the state of Minnesota
propaganda is now being spread for
gross income or dollar turnover tax.
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