Askov American. [volume] (Askov, Pine County, Minn.) 1914-current, 1935-03-28

2 cent tax on bank checks, 10 per
cent amusement tax, 10 per cent on
cosmetics, 2 per cent on fuel and
lighting gas, and 2 per cent on cleo
trical bills and telephone bills, to be
paid by the consumer.
While adding all these taxes to be
borne by the consumer, who in the
large proportion of cases is the aver
age small taxpayer, the sponsors of
the omnibus bill provide for a cor
porate excess tax of only 81 on each
$1,000.
The tax committees program now
calls for separate bill providing
for submission of constitutional
amendment removing the tax levy
from real property for state purposes
and fixing a tax limitation on real
estate. This limitation might follow
the lines of some of the proposals
now before the Legislature.
Liberals Oppose Plan.
However, there is every reason to
believe that the committees tax pro-
gram is already facing serious OBJ
stacles. Liberals in both houses are
preparing to fight the sales tax fea-
ture of the plan. The liberals see
in the net income tax section of the
proposal an attempt to head off the
administration income tax bill whose
sponsors are claiming &c votes in the
House-enOugh to pass it through
that body. The maximum rate of net
income taxes allowed under the pro-
posed omnibus bill is barely more
istration bill.
And even should the omnibus bill
be damned through both houses by
the conservative majorities, the meas
ure might still have to face an even
more formidable barrier-the COVER
nor's veto power In case of a veto
a special session might be necessary
to settle the tax problem.
Often in the past Governor Olson
has outspokenly voiced his opposi-
ton to any form of sales tax. and he
has renewed his attack on such taxes
since the tax committees announced
their new program.
"Levy on Poverty"
Calling the sales tax a levy ION
poverty rather than wealth" the gov
ernor points out that such a tax
weighs most heavily on the small
income groups-the farmers and the
workers-since a large part of their
income goes for the necessities of
life, on which such a tax would be
levied
Furthermore, the governor points
out, the cost of the tax to the con-
sumner in many cases might be much
higher than 2 per cent. He cites the
fact that if a merchant collected a
tax on a cent sale he could not
collect less than a penny, the lowest
denomination of our money. In such
case the increase in price would
amount to 20 per cent. In sales up
lection of an extra penny would
amount to more than the per cent
tax provided in the bill. The buyer
would pay more than 2 per cent, but
the state would collect only that much
the difference going to the seller.
Criticized by Governor.
Governor Olson further criticizes
the tax committees plan for failing
to include an increase in the gross
earnings tax of railroads, such as has
been advocated by the administration
group. He points out that the pres
ent gross earnings tax Of these car
riers is much below what they would
have to pay if compelled to pay on
their real estate and personal prop
erty. He asserts that those who would
benefit principally from the tax limi-
tation for real estate are the wealthy
owners of large income producing
properties.
1.-The present plan, therefore, in the
the burden of taxation from the rich
on to the poor" the governor con-
cludes. "That would be vicious
enough during normal times, but it is
unconscionable during this period of
depression" -
Motor Vehicle Levy.
In closing it may be well to revert
to the subject of motor vehicle taxes
The Senate has approved a bill ia
make permanent the reductions in
motor vehicle license fees which
have prevailed during the last two
years. More battling is still ahead
for this bill. The Senate passed an