Askov American. [volume] (Askov, Pine County, Minn.) 1914-current, 1935-03-28
TAX PROGRAMS
published in The Minneapolis
Journal March 20, 1880

Journal March 20, 1850
In reference to the tentative tax
program outlined in news columns
of The Journal providing for gross
income tax of One-half of one per
cent on all manufactures, wholesale
transactions, and transactions in
volving farm products; a gross in
come of one per cent on all other
business done in the state with no
exemptions except interstate sales;
together with a one per cent tax
on all retail sales, without exemp-
lions, l wish to call attention to the
fact that here are three tax pro-
positions wholly inimical to the in
terests of the people of this state.
For instance, on gross income
tax of One-half of one per cent. this
would take approximately one-half
of the commissions of the commits
sion merchants handling grain in
the State of Minnesota. The tend
ency would be to transfer the bus
mess of the exchange in Duluth to
Superior, Wisconsin, and from Min
neapolis as we'll to Chicago and SUI
periOr, if the tax is to be paid by
those receiving the income; and If
it is not, then it will be an addi-
tiOnal load on the farmers.
The gross income tax of one per
cent on all other business done in
the state, with no exemptions ex-
cept interstate sales, would have a
very strong tendency to give a for
eign catalog and wholesale house a
tremendous advantage over local
catalog and wholesale houses by the
exemption of the interstate sales,
especially in the line of heavy goods
where single sale would be of a
sufficient amount to constitute a
real difference in the price.
one per cent tax on all retail
sales. without exemptions. would
certainly be collected directly from
the consumers. so that even persons
on relief would be compelled to make
substantial contribution to the tax
funds.
1t is very clear, however, what
the program means. There is to be
limitation of the real estate tax
with plenty of propaganda about it
to appeal to small home owners, and
the majority of home owners are of
that class. The savings which these
small home owners would derive from
tax limitation would be paid and
paid again by the one per cent sales
tax which would be levied on them
by public utilities, gas, electric,
transportation and telephone COM
panies. and the one per cent added
to the cost Of clothing and food, so
there will be absolutely no saving
to them, but a change in the form
of the taxes and an increase in
amount.
Another plain discrimination ex-
lists which is just as vicious in its
effect as the one last above referred
to. neS-
The tax limitation on real prop
erty would be of no relief to in
dustrial and manufacturing concerns,
gross income tax and compelled to
pay another tax, a good deal more in
amount than they pay in real estate
taxes, by the income tax which would
be assessed on their gross income.
The people who would profit by
the limitation on real estate taxes
would be the owners of hotels, Of
fee buildings. and ether forms Of
real estate. and especially real es-
tate held for speculation that pro-
duces no income: and this discrim-
ination would be very apt to make
4 statutory limitation of that effect
unconstitutional for it's discrimina-
ton.
In any event, the general effect
of every one of these propositions
is not to aid or assist recovery but
to aid and assist certain special
classes of people from being taxed
on the same class of property that
other people would have to pay taxes
on because of the income earned in
connection Herewith, for while in
come might be taxed from hotel and
apartment houses. it would not be like
4 gross income tax on manufacture
ing concern handling many millions
of goods and paying on them where
the value of their industrial property
would be practically equal or even
less than the value of the apartment
house. hotel. office building. or unim-
proved property.
1t is to be hoped that this brain
storm will be cooled down by suf-
ficient pressure from the citizens of
Minnesota to prevent the enactment
into law of any such discriminatory
legislation which Is wholly unfair
and will have no effect in favor of
recovery. but on the other hand will
be strong discrimination against
the business interest of every bus
fnessman within the state Of Mime
sofa. other than the value of the
apartment house. or office building
owner.
1t is also clear that the next cry
that will go up, if these laws are
passed is, that the schools must be
saved. and that these Infamous sales
taxes and gross income taxes are the
only way to save our schools.
The way is now clear and open fol
the legislature to save the schools
A moderate extension of the income