The Redwood gazette. [volume] (Redwood Falls, Minn.) 1873-1940, 1935-01-17

ELSEWHERE United States) e !
One Year (outside United States) $3.50
recommendation made by the governor to the
state legislature that homesteads valued at $4,000
less be exempted from taxation appears to be i'll
advised.
AS possible alternative, he suggests that the
taxable valuation be ten per cent of true value of
such property Since it 40 per cent until reduced
to Is per cent plated property by the last legsa
ture this alternative would mean q reduction of Is
per cent in two years.
Although either measure would very naturally be
highly popular with majority of small home own
ers who constitute large portion of the voting pub
lie, there many well founded objections. Without
other reforms in tax system, either would work
a great hardship other taxpayers more able to
pay.
Complete exemption would be direct step in
actly the wrong direction because the most nfortun
ate part Of present tax system is that many per-
sons escape direct taxation No bond election
held without the warranted complaint arising
from property that many legal voters who
happen to own property allowed to vote upon
the property additional tax burden the pro-
ceeds of which benefits the tax free person without
his sharing the cost.
The trend in taxation should be toward making
everyone taxpayer It is entirely just that the rich
should pay far greater portion Of the cost of gov
eminent and of improvements but everyone who bene
fits directly should pay part, not merely indirect
ly through nuisance taxes but directly
In the second place, the exemption of homesteads
would work great hardship on many residents of
small towns. In many towns very few homesteads
valued $4,000. Where such homesteads
largely owned by business of the town, the relief
would be relief at all. 1t would simply mean that
they would pay a far greater rate their business
property for the tax loss from source will be
made up from another. The applies in lesser
degree to the 10 per cent reduction.
Again, what of the large class of persons who
rent their homes? Taxes on such homes would
mount, resulting in higher rentals. While home
stead exemption law would encourage persons to own
their homes, great many people would still be
able to amass sufficient wealth to purchase their
dwelling.
Perhaps it is minor point but it seems possible
that with such law, farms might be split into
units of less than $4,000 value and occupied by
and sons-in-law of the original owner under deed
arrangement within the family and in this manner be
removed from the tax rolls.
Tax reform is definitely needed but it should not
be brought about by shifting the burden from
group to another several others able to
pay. 1t should be along two line: l. Reduction of
governmental expenses. Small units have accom-
plished much in this direction but the ground has
hardly been scratched far the state is concerned
2. Remodeling the whole system of taxation along
carefully thought out lines rather than making
ceptions in few general cases without preventing
injustice to others no more able to pay Such re-
modelling might conceivaby make the reduction ask
ed for not only possible but fair
We hear great deal at this time about govern
mental planning" for the future and if it is sanely
done it will be boon to future generations Had
the planning idea been popular 25 years ago.
ing funds aside to launch building programs when
prices low and employment badly needed instead
of bonded debts which make tax reduction difficult
and further building activities dangerous to credit
Where pay bonds for improvements long since
abandoned might have funds drawing interest to
finance improvements. Public planning by local
units as well larger units is time well spent. Per-
haps eventually will be kind enough to leave
something for the coming generation besides obliga
TONS
Persons who got chit" for all those drives just
before Christmas will be glad to learn now that prac
ticaly everyone of them went overthetop thanks to
q lot of small 'bits" well done.
Few of us would relish the idea of living off the
neighbors but the idea Of getting every bit of gov
eminent support available to be growing
After all who is the government but ourselves and all
neighbors?
With daily newspapers printing "wirephotos" of
events thousands of miles away alongside stories of
the same events perhaps the profession get away
from the old accusation, "Oh it's probably just
paper talk"
Knowing the trouble he has had with them we
can understand why Governor Olson would prefer
one-house legislature Seriously though, this may be
constructive step, Minnesota might be wise in
making if Nebraskas experiment works out
Firms that advertise not only build their business
bat their community as WELL They ask and deserve