Askov American. [volume] (Askov, Pine County, Minn.) 1914-current, 1934-10-25
Gross Income Tax Proposal
Must Be Fought by Masses
Continued from Page u

| Continued from Page u
pass sales tax, a gross income and
dollar turnover tax or some other
form of taxation that is a tax on the
consumer. 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.
Gross Income Tax Proposed.
| And so in the state of Minnesota
propaganda is now being spread by
reactionary Republicans for a gross
income and dollar turnover tax. 1t
is being presented very palatably but
it is a sugar coated proposition that
should be looked into carefully by
those to whom it may sound good.
1t must be remembered, that there
is wide difference between net in
come and gross income taxes.
1t has been argued that if One-half
of one per cent were collected on the
gross income and dollar turnover
that that should create enough rev.
enue so as 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
about IL billions, but it would require
dollar turnover of 81 billions at a
rate of taxation of one-half of one
per cent to produce the $135,0O0,000
needed annually for the state, all
counties, school districts, cities, vii
lagos and townships.
One tax only, and that but one-half
of one per cent on the gross income
of the individual or business sounds
good. On a $4,000 individual income
that would be but $40. Fine chance
of any such taxation! 1t is ridiculous,
especially when we stop to consider
that folks with incomes of $4,000 are
usually paying total taxes of from
500 to $3.50 on real estate and per-
sonal property.
The indirect tax in this gross in
come and dollar turnover proposal is
the one which the advocates feel the
unsuspecting public will overlook. A
direct tax bill in which 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.
Is A Concealed Tax.
Let us go behind the scenes in the
gross income and dollar turnover tax
proposal. The head of a family with
$4,000 income may be obliged to
spend most of that money each year
| for the sustenance of his family and
the maintenance of the home. He
will pay the one-half of one per cent
on his gross income which will be
the small sum of $40 under provis-
ions of that scheme of taxation. But
when he makes purchases of cloth
ing, shoes, groceries, meat, furniture,
repairs, fuel, ETC., he will pay the
gross income taxes passed on from
the manufacturer, distributor, whole
saler, retailer, and others right down
to the consumer. That will make for
taxes of from 2 to 3 per cent on
all his purchases. That is the in
siduous, indirect and concealed tax
the burden on the masses. This is
all commodities and services in the
United States are purchased by per-
sons with incomes of less than $4,000
annually.
The gross income and dollar turn
over which is another form of sales
tax, is wrong in principle, unjust,
unscientific, and tax on the mass
of the citizens already overloaded
with taxes, both direct and indirect
1t will be placed on the backs of
consumers, farmers, and workers
through increased prices on the mer-
chandise they buy, including the nee
essities of life. 1t will discourage
buying and in times of depression
will cause further stagnation in trade
Local Independent business places
would be at disadvantage as COM
pared with chain stores and catalog
houses under that system of taxation
1t is much more expensive of collec-
ton than the net income tax and
other taxes. Retail merchants do not
want to, nor should they be called
upon, to be tax collectors.
Would Permit Less Home Rule.
Gross income and dollar turnover
taxes collected universally statewide
would tend to further centralize gov.
eminent. 1t would take away some
of the cherished home rule now en-
joyed by townships, villages, cities
school districts, and counties, an(