Askov American. [volume] (Askov, Pine County, Minn.) 1914-current, 1934-08-30
THE BIG PROBLEM

During hard times when money is
scarce is usually when taxes go up
1t should be the opposite but it can
hardly be so.
When the economic pinch is on
private industry closes in, lays off
help, cuts expenses, and tries to keep
out of the red.
The government is called upon to
serve and to help all the more-the
people out of work must be fed and
clothed. So in the case of federal and
state governments, especially, the ex-
penses mount.
Township, village and county gov
ernments can cut expenses and in
most cases have done so. The state
could diminish the aid to school dis
tricts, refrain from relief in the way
of no public building or improve
ments, and also turn thumbs down
against any direct relief. 1t could
make a real showing in tax cuts with
such a policy. But would it be salts
factory and would the state be serving
the public welfare with that policy?
The argument is even stronger in
behalf of the federal government to
which the various states look for help
1t is a case of passing the buck"
from the villages, townships, school
districts and counties to the state and
national government. Somewhere the
expenses of the public welfare must
be met and usually it is the states
and the national government that take
the brunt of the burden. And that is,
after all, the best way, for the states
and national government have other
sources of tax revenue than that of
general property.
Net income, inheritance, excise, and
gross earnings taxes constitute a con-
siderable portion of the revenue &C
cruing to states and federal treasures.
Such taxes do not bear down on the
home and business as do real estate
taxes. Most of the above mentioned
taxes aside from real estate are as
sessed on a basis of ability to pay,
and that is a better basis than the
straight general property tax.
high of recent years and must be low
cred. This is especially true of taxes
on the home, and in this connection
the last session of the Minnesota Leg
islature did good work in lowering
the assessments on homesteadS for
real estate taxation purposes.
Farm homes and buildings and
H. 70 Ill 4
value of $4,000 are now being as
sessed at 20% where formerly it was
33 1-3 per cent. The value above
$4,000 is assessed as formerly.
Homes on plated property, in viii
lagos and cities, of a value not to
exceed $4,000 are assessed at % per
cent where formerly it was 40 per
cent.
That is moving along the right di-
rection and is in line with the plat
form and principles of the Farmer
Labor party which stands for the pro-
lection and security of the home.
But the increased demand for direct
relief makes it difficult if not impos-
sible for the states and federal gov
eminent to make any showing in the
way of tax reduction, however much
that may be desired and regardless of
how eager state and national political
parties in power may be to make a
showing in tax reduction.
All this brings us to a realization
of how important is the question OF
unemployment. In fact it is the pre-
dominating question confronting the
American public today. Proper taxa
ton is important for it can also be
used to decentralize wealth, and the
taxation burden should be equitably
levied so that there may still remain
purchasing power in the hands of the
masses, but the unemployment prob
lem is the real nut to crack.
Not only are the people without
work dereft of many necessities ant
the purchasing power so necessary i
we are to have prosperity, but i
brings on demoralizing conditions.
Idle factories are no good to an.
one. 1t will be well for the state
to lease those, provide work for SOM
of the unemployed so they may manu-
facture necessities for themselves ant
others who are still on the relief rolls
The articles manufactured by the nov
idle will not go into the ordinar.
channels of trade in competition will
private industry, but would be used t.
alleviate suffering. 1t will cause in