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


The question of tax limitation has
brought much dispute among the leg
islators SO far and is due to provoke
much more debate before it is finally
disposed of. The announced aim OF
proposals of this kind now before the
lawmakers is the lifting of some of
the tax borden from real estate. Real
estate owners, it will be readily
agreed, now bear a disproportionat
share of the taxes in many cases.
Tax limitation advocates assert that
their proposals would remedy this
evil.
A subject which is Of great popular
interest is the bill passed by the Sem
ate which would continue the reduced
motor vehicle license fees that have
been in effect for the last two years.
While the amount which the smaller
group of Individual owners of new
and higher priced cars will save il
the reduced rates are retained is rel
atively unimportant, the subject, new
ertheless, has provoked much discus
sion and revealed widely varying
opinions.
Major Tax Bills.
! Now let us consider in detail some
of the ma or tax bills that have been
submitted.
The administration bill for in
creased income tax rates now before
the tax committees of both houses
would raise the maximum rate from
/ OF tn
cent. The Is per cent rate would
apply to all taxable net income ex-
ceeding $4,000 annually. The rate
on taxable net income not in excess
of $1,000 would remain at 1 per cent.
Sponsors of this plan contend that
it offers a better means of relieving
some of the burden on real estate
than do some other tax revision pro-
posals presented. They emphasize
that, being based on net income. 1t
would be levied in accordance with
the taxpayers means. Those receiv-
ing small incomes, they point out.
would not have to pay the tax
Gross Receipts Plan.
The bill for a tax on the gross re-
ceipts of business deserves considera-
tion at this time because it was IA
vored by many legislators early in
the session, even though it appears
now that no such tax will be enacted
at this session. The recent decision
OF the United States Supreme court
in Kentucky tax case raised seri-
Gus question: as to the validity of gross
receipts, or gross income taxes, as
they are sometimes called.
The principal gross receipts tax bill
now In the hands Of the tax COM
mittees of both houses would levy
a tax Of ne-haH of per cent on
the gross receipts Of business. How
ever, it has been pointed out that the
actual cost Of this tax to the ulti-
mate consumer, would be much great
er than half of one per cent. The
reason for this is that 1t would be
collected from several sources-the
producer of raw materials, the manu-
facturer, the jobber, the wholesaler,
the retailer. and 80 forth, SO that the
tax which the consumer would bear
would probably be from to per
cent or more.
Amendment Proposed.
The proposed tax Limitation amend
ment to the state constitution pro-
vides that after Jan. /, 1897, no tax
shall be imposed on real or tangible
personal property for any state pur-
pose. 1t would limit the tax on
plated village or city real estate
, after that time to ~ per cent Of it,
full and true value and on other real
estate or tangible personal property
to / per cent Of it's full and true
value. Under this the tax on farm
real estate would be 1 per cent Of its
full value.
Supporters Of this tax Limitation
plan frequently argue that their pro-
posal aims largely at helping the
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