Askov American. [volume] (Askov, Pine County, Minn.) 1914-current, 1935-04-04
TAX BETRAYAL
BY Farmer-Labor Educational Blu
reau. Labor Temple, st. Paul, MINI.

BY Farmer-Labor Educational Blu
reau, Labor Temple, st. Paul, MINI.
Reduce the tax on corporations to
one mill!
Keep down money and credits taxes,
income taxes, railroad and mine taxes
to low rate!
Soak the farmers and workers
through a sales tax!
These are the main points in the
tax program which the Conservatives
in control of the Minnesota legisla-
ture have announced.
They delayed until nearly the end
of the session before revealing this
program. hoping to push it over in a
last-minute rush. But the Conserva-
tive leaders have already started to
talk about backing down on some
parts of the plan, because the pro-
tests are SO strong. Many legislators
who have voted with them up to now
will not support their tax plan
But no matter how far they are
forced to retreat, this is the program
they announced and are trying to
put over.
Everyone admits that new sources
the burden on the property tax can
be reduced. The Farmer-Labor tax
plan presented to the legislature will
bring as much relief to the property
tax as the Conservative program. And
it does not put a penny Of the bur-
den on the farmer, the worker and
small business and professional peo-
pie.
1t will really transfer the tax bur-
den to those who can pay.
Study over these two programs and
see how they will affect you.
The Conservatives propose:
1. A decrease of $4,50O,000 in the
Corporate Excess tax, Towering the
rate of this tax on corporations to
one milD.
2. No increase in the Money and
Credits tax.
3. No increase in the Railroad
Gross earnings tax.
4. No increase in the Mining Com
pany taxes.
5. A slight increase in the Tele-
phone Gross earnings tax.
6. A slight increase in the net in
come tax.
Z. An increase in the inheritance
tax.
s. And a heavy sales tax.
The sales tax will be levied on
every retail sale of food, clothing and
every necessity of life at go, and will
run up to 1919 and 300 on tobacco,
candy, amusements, cosmetics, etc.
The consumers pay the sales tax.
The conservatives plan to raise
about s23, 100000 by this program, and
they are getting $2OOOO,OO of it from
the sales tax. Only S3,50O,000 comes
from other taxes, and this small in
crease in taxes on wealth is offset by
the $4.75O,0OO they are trimming off
the Corporate Excess tax.
Compare these Farmer-Labor and
Conservative programs point by point:
The Corporate Excess Tax.
The Corporate Excess tax is part
of the property tax. 1t taxes the
Intangible property of corporations.
Such intangible property is income
producing. it is carried on the books,
and bought and sold as property. 1t
should be taxed if any property
should.
The scheme to reduce the Corporate
Excess Tax to one mill is the worst
Conservative program. 1t is a direct
gift of $4.75O,OOO to few giant cor
pOrations, gift which must be made
up through the property tax or the
sales tax. Keep the following facts
in mind:
The Corporate Excess Tax is a fair
tax. The United States Supreme
Court sustaining a Corporate Excess
tax, adams Express versus Ohio, 166
U. S. 1857 has stated in strong Ian
guage that if our taxing system taxes
only tangible property, and ignores
intangible property Accumulated
wealth will laugh at the crudity Of
taxing laws which reach only the
one. and ignore the other; while they
who own tangible property, not or
ganized into a single producing plant
VIII iScI tuc vi SSSIcI
which so misplaces the burden Of
= taxation"
1t does not hurt business. One
fourth of the states of the union have
such tax. Illinois has had it fol
: sixty years. 1t reaches only a yer!
;. few large corporations which arr
we'll able to pay. There have beef
loud shouts that this tax would driv,
:, business out of the state. but it hasn'
;, chased business out of Illinois.
+ Only a few corporations have in
: tangible property, and they are mostl,
: public utilities In Illinois nearl.
d 500 of the corporate excess tax i
g paid by ten giant corporations. al
q public utilities
G The Minnesota Corporate Excess
v Tax has been in the law since 1875
S nearly as long as in Illinois. But tn
n tax was conveniently forgotten b.
|: the state officials until Farmer-Labor
Il ties controlled a majority of the Tia,
:. Commission. Then they started T.
1. enforce it. Corporations threw tn
d matter into court. Now they are us
A.