Askov American. [volume] (Askov, Pine County, Minn.) 1914-current, 1935-10-31
ADIEU SALES TAX


it's place that will work.
The most important problem con-
fronting Minnesota and entire ma
ton today is not taxes but unemplOy-
ment. Credit is due the present ma
tional administration for at least re-
cOgnizing that there is such a prob
lem by making appropriations to
alleviate the situation. There is no
need for being alarmed because the
appropriations in the last Congress
are greater than the tax collections
will be, for the simple reason that
we are not borrowing the money from
Europe or any other country but that
we have the cash right here in the
good old U. S. A. 1t is matter of
better distribution.
The question is an important one
but does not compare with unemplOy-
ment. When a person has an income
of say $4,000 per year he can pay
$3.50 to 5000 in taxes, but if his in
come is wiped out a $40 tax bill
looks like mountain.
The approximately 100000 col
lected annually now through the state
net income tax which became law
in 1888, would be doubled if the times
were normal and the wheels of indus
try were moving, showing again that
the unemployment problem is the
predominating one. Not only is it
important from an economic stand
point but certainly also from moral
standpoint.
The individual net income tax max
imum rate might be raised from
per cent to per cent or higher.
Some states have 10 per cent maxi
mum and California is Is per cent.
Raising the maximum rates would
increase the revenue. The inherit
ance tax could be made to produce
more revenue for the state without
injury to any individuals, also the
gross earnings taxes on telephones
and moneys and credits taxes.
There are, of course, objections to
any tax system. However, let us not
have taxes based on the necessity to
consume, such as the retail sales tax,
but rather let the taxes be on the
basis of ability to pay.
1t is true that the people in North
Dakota by recent referendum vote
upheld the sales tax. North Dakota
is almost wholly an agricultural
state, very little industry, and it is
different situation than prevails
here in Minnesota which is rich with
natural resources and has much in
dustry that would gain by a sales tax.
Whether the farmers of North Dakota
pay by way of general property or
sales taxes does not matter so much.
except that the sales tax is more
of a nuisance.
And why should the masses be re-
duced to where the state has to col
lect revenue by way of pennies daily
instead of semi-annually or annually
in decent amounts? One feature of
the sales tax is that it is direct
tax, but the consumer gets no receipt
and it makes a tax collector out of
every retailer. The tax, whatever
type it may be. should be paid to the
county treasurer or his agents in
such amounts that the taxpayer may
have a receipt and know exactly what
he has paid every three, six or twelve
months.
The majority of New Jersey legis-
lators. recently chosen, we're elected
on a platform opposed to the retail
sales tax.
Many Minnesota legislators are
quite willing to forego adoption of the
sales tax in the oncoming special
session of the Legislature, this in
spite of the fact that the sales tax
was included in the omnibus tax bill
which passed by substantial major
tiles in both houses of the Legisla-
ture during the regular session last
winter. The Legislators have heard
from home and are not now so anx-
ious to pass the bill again. This is
especially true of the House members
who come up for reelection in 1886.
We must bear in mind that go per
cent of all commodities and services
| in the country are purchased by
those with incomes of less than 50 900
annually. In 1880 and prior years
the federal government collected Sc
per cent of it's revenues from income
and inheritance taxes. Now it col
lects but 3S per cent from those
sources. The balance comes from
excise and other taxes.
Yes, the sales tax will bring in
some revenue. But at what cost? The
crying need is for more buying power
on the part of the masses Let us not
diminish it through a sales tax and
in addition to that place the local
independent merchant at still greater
disadvantage with respect to catalog
house competition. The state retail
sales tax cannot be collected on inter-
state business.
The cry against state net income
taxes has usually been that it drives
industry from the state. though no
proof of it. But the sales tax is a
different matter. If it is per cent,
you pay 81 plus cents if you buy
a one dollar article from a retailer
If you order from a catalog house
in another state you pay but ST.
THERE is concrete evidence of dis