Askov American. [volume] (Askov, Pine County, Minn.) 1914-current, 1935-03-28
AUTO
TAX QUESTION
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Senator ROepke, who is chairman
of the Motor Vehicles committee, led
off the argument with plea for the
adoption of his committees report
favoring the reduced license rate.
Senator Patrick Farnand of Hib-
bing. one of the liberal members.
promptly arose to attack Senator
Roepke's argument, saying that the
important question is that of revenue
for the Minnesota Department of
Highways"
Need for Revenues.
The state is required to match fed
eral aid road funds dollar for dollar.
The United States government has al
lotted 100000 to Minnesota for the
next biennium on these conditions.
Highway work will provide jobs for
$4,000 men, Senator Farnand pointed
out, and the state should raise suf-
ficient revenue to avail itself of all
possible federal road aid funds.
The car owner, Senator Farnand
emphasized. pays no other tax on his
car but his license fee, and his tax
on the "a per cent basis Is much
lower than personal property tax on
his car would be.
The Senate finally approved the
continuance of the lower fees by a
vote of 40 to IS, and the question now
goes back to the House. The differ
ences between the two houses are
due to be thrashed out in conference.
New Tax Program.
The whole question Of legislative
tax reform has been given a shake
up by the Tax committees Of both
houses. They have approved sub
committee reports recommending that
the various tax measures be consol-
idated in a single omnibus bill.
Several pending tax measures are
due to go by the board in this process.
The omnibus bill would substitute a
straight retail sales tax of 2 per cent
for the gross income tax, which was
heavy favorite of the conservative
ajority earlier in the session.
Sponsors of the sales tax plan anti
cipated it would raise $12,O00,000 in
additional revenue. However. the
question already has been raised as
to whether the inclusion of sales
tax may not jeopardize the entire tax
program.
Olson Opposes Sales Tax.
Governor Olson has often voiced his
opposition to a sales tax and since the
tax committees have come forth with
their new program he has repeated
his denunciation of such a tax. 1T
is vicious" he says, because it is
tax on poverty rather than on
wealth."
The working people and others in
the small income groups, the Cover
nor says would feel the tax hardest
because most of their earnings are
spent for the necessities of life.
The ones who would really gain
by tax limitation, he says, are the
wealthy owners of valuable prop
critics whose reduction in real estate
taxes would amount to many times
the total they would pay in sales tax.
In view of the Governors outspoken
opposition it seems likely that he will
veto the omnibus bill if it is finally
passed with the sales tax provision.
furthermore, liberal members of both
houses are already preparing to fight
the sales tax.
Income Levy Compromise.
The Farmer-Labor administration
has strongly urged increases in the
net income tax rates as requirements
for real estate taxes. The proposed
omnibus bill compromises with the
administration view by raising the
maximum net income tax rate from
per cent as at present, to per cent.
A bill now pending, which has the
support of the administration, would
raise the maximum income tax rate
to Is per cent. while leaving the rates
in the low income group unchanged.
The omnibus bill would reduce exemp-
tions to $500 in the case of single per-
sons and 1850 in the case Of married
persons.
Several other provisions of the pro-
posed omnibus bill also would fall
heavily on the average consumer. 1t
would put taxes on tobacco soft
drinks and candy. In addition there
would be 2 per cent tax on cleo
trical and telephone bills to be paid
by the consumer
On the other hand, applying to cor
pOration excess, the omnibus plan
would levy a tax of only 81 per 81, 600
The tax committees also have ap-
proved a proposal for a separate bill
providing for a constitutional amend.
ment removing a levy from real prop
erty for state purposes and fixing tax
limitations.
Asks for Accounting.
The Carley investigating committee
finds itself on the defensive. Early
in the week Senator Charles A. Haus-
Ter, liberal. moved that the commit
tee submit to the Senate a complete
list of expenditures incurred to date
He pointed out that it had been rum
ored that the committee already had
spent more than the $4,000 appropri-
/ atnl fnr OF ha ~ H.,