Askov American. [volume] (Askov, Pine County, Minn.) 1914-current, 1935-11-28
COLLECT THE TAX

The tax problem in the state of
matter of enacting new laws as it is
that of enforcing present statutes. A
general Tightening up of tax collec-
tions all along the line would help
materially.
The state net income tax on ind-
viduals and corporations, which was
made law in 1888, produced revenue
of something over two million dollars
the first year. The revenue from 1894
incomes, paid in 1885. amounts to APP
proximately $3,40O,OOO.
The exemptions are $1,000 to single
persons and $4,000 to married persons
with additional exemptions of $3.50 for
each dependent. Corporations are ex-
empt $1,000. The rates of taxation
are graduated from one to five per
cent on the net income after all de-
auctions and exemptions have been
taken out. If the maximum rate were
increased to 10 per cent it would
of approximately three million dollars
annually, or total of over six million
dollars. The tax on individuals and
corporations, based on the incomes
of the last two or three years, would
produce approximately 100000 annu-
ally for each one per cent increase
over the five per cent that now pre-
walls.
Minnesota now has a Tax Commits
sion that is active and alert, knows
its business, makes a study of it, and
wants to produce for the state as a
whole. The commissioners are Chair
man George e. Wallace, Harry f..
Boyle. and George F.. Gage.
Evasions on net incomes, corporate
excess. and money and credits taxes
are numerous and the Tax Commits
sion has made enough investigation
of the situation to know that addition
al millions of dollars can be collected
for the state if the Commission is pro-
vided with adequate funds and has
the machinery with which to work.
In the past year, enough new incomes
have been discovered to produce a
revenue of a million dollars annually
and it has been assessed. Approx
mately one-fourth of it has been col
lected and more is coming in daily.
One of the income assessments recent
ly placed on the books, amounts to
about 100000.
A good example Of what can be done
and should be done is the case of a
corporation with headquarters in
another state, but doing much of its
business in Minnesota. The corpora
tion had reported loss on their
Minnesota business. An auditor from
the Income Tax Division travelled to
the headquarters of the corporation
and spent three weeks going over
their books with the result that the
corporation paid to the state of Min
nesota in net income taxes on their
business in this state for 1884, the
sum of S125.45305. And 1t was done
quickly without further quibtling.
The auditors salary and expenses in
making the investigation was about
$500. or in other words 1t cost one
third of one per cent to make that
collection.
1t is estimated that three months
spent in the city of New York by one
OF the several able auditors in the
State Income Tax Division would pro-
duce an additional million dollars of
revenue for Minnesota from the net
income tax on corporations. For every
dollar of appropriation given the Tax
Commission by the Legislature. the
Commission could collect five hundred
dollars in net income taxes. That
would be mighty good investment
for the Legislature to make and it l.
something that should be carried
through in the coming special ses-
sion.
There is no sense in permitting in
dividuals or groups of individuals to
become so powerful that they flaun,
the government. The government
granted the power by the will of the
people. is that agency which repre-,
sents all of the people and all of the
interests. and should be all powerful
1t should and must be understood
that when the government steps il
and asks for its just dues. in accord.
ance with law, that that means bust
ness.
Not too much talk. but efficiency
and action is what we need