The Redwood gazette. [volume] (Redwood Falls, Minn.) 1873-1940, 1935-05-02
A Reader Writes
TAXES
By Glen Armitage

ative Zwach's column leads me to
think that both writer's manifest
a similar idea, namely; Let those
pay the taxes who have the means
with which to pay. AS Mr.. Zwach
intimates, make the ten per cent
who are supposedly controlling 80
per cent of the wealth shoulder
the burden. A very high minded
theory indeed and would be the
long sought remedy if it worked
as good in practice as it does
from the speakers stand.
There are, no doubt, some GER
tain interests that have connived
to gain more wealth and power
than they should be granted for
the best welfare of all concerned.
l do not, however, concur in the
much abused statement that a
very small percentage of our peo-
pie possess the wealth of our ma
ton and that the only way to
cure our economic ills is to take
from those, who have and give to
those who haven't.
No matter whether it's house
or a farm you rent out or a fact
DRY OR business that you operate,
it is the net return from your en-
terprise that determines the
amount of wealth you possess. Pro-
perty that does not return net
income for period of time is
worthless. 1t seems obvious then
that if we, either by tax or regu-
lation, strip business of all pro-
fit we can soon render the ten per
cent wealthless but we will have
done little toward adding wealth
to the other 80 per cent.
Property regulation and taxation
imposed on industry is desirable
but any attempt to carry out
Huey Longs "Share the Wealth"
program is utter folly and any at
tempt to saddle the entire state
tax levy, much of which we are all
responsible for, onto the mythical
ten per cent Of wealth holders is
just about as fallacious.
In the first place the return
from state income taxes, no mat
ter how high the rate, will not
yield sufficient revenue to give
an appreciate relief to real
estate, and secondly taxes paid by
most industries are largely passed
on to the consumer and we pay
the bill anyway. Furthermore it
adjustment Of the state levy will
lower the tax of Redwood Falls
property owners but IL per cent,
then the local tax levy is too high
which brings us right down to the
root of the evil, to-wit: We've
been dancing all night and are
now looking for some generous
soul to pay the fiddler. And who
do we find on the dance floor, just
the wealthy? No, for once all
social lines and cast have been
abandoned. The poor man casts
his vote for public spending as
readily as the wealthy and if the
rich man will pay the fiddler he'll
keep right on dancing.
Public expense is what makes
high taxes. Elaborate public build
ings and improvements are what
causes the surrounding homes to
look shabby. High taxes are
partly responsible for high rents
which drives the poor classes to
the outskirts to dwell in taxpayer
shacks and prohibits the more
well-to-do from building homes,
the result of which would give
employment to the poor. The poor
man has contributed his vote to-
ward pauperizing himself, uncon-
sciously, perhaps, which renders
it imperative that he be made to
contribute a small but direct
share toward paying the public
expense which will induce him to
give more consideration to his vot-
ing right and result in better
governmental economic perspec-
tive.
The largest part of our state
debt is the result of having bond
ed the state to raise money with
which to grant loans on farm real
estate. At the present time the
interest on about half of these
farm mortgages is delinquent.
This means several million dollars
loss to the state each year, which
must be met by taxation. The
farmer, for whom this money
loaning venture was intended to
help now says, Don't tax me. Tax
the fellow who holds the mort
gage" Since the state and fed
eral governments hold quite a
percentage of farm mortgages
there is little new revenue to col
lect in that direction. The federal