Askov American. [volume] (Askov, Pine County, Minn.) 1914-current, 1936-08-13

in the past dozen years. Schools,
roads, all the state institutions,
health and other governmental serv-
/ ices, are necessary and we do not
desire to be without them.
Assuming expenses of government
remain about the same, where would
Il e revenue come from with which to
maintain government if taxes on gen.
eral property for state purposes were
suddenly eliminated? Who would
make up for the taxes that would not
be collected from absentee iron mine
owners and other absentee property
owners? Tie deficiency would have
to be made up by citizens residing
within the borders of our state.
Mines Not Over-Taxed.
The iron deposited by nature within
our State is heritage of our people
ership of the State of Minnesota. Hav-
ing been acquired by private individ-
uals and corporations, the only re-
course is to tax. The iron mining in
dustry has not been Overtaxed. There
would be no sense in making them
a gift of 100000 in savings on ad
valorem taxes and in turn further
burden others with small incomes,
and thus reduce buying power still
more.
1t has been argued that the pro-
posed Constitutional Amendment does
TO l.
ties, occupations, incomes, Inherit
ances, gifts, gross earnings and 9TH
ers. But try to raise occupation and
royalty taxes on the iron ore indus
try once they have been granted
savings of $3,OOO,0OO annually on their
ad valorem taxes. Those battles have
been fought time and again in the
Legislature and history proves how
many years were required before the
occupational tax was finally adopted.
Amendment Would Not Help.
1t is true that general property
taxes have become too high. but GER
tainly Il is proposed COnsti utional
Amendment No. will not help mat
IL
tives and reactionaries to argue
against high general property taxes,
having in mind their actions along
that line in the Legislature. Did they
not continue to fight against adoption
of the net income tax on individuals
and corporations? Year after year
they kept on delaying and delaying.
They caused a Constitutional Amend
ment vote in 1920 and again in 1882,
arguing continually that the net in
come tax would not be constitutional
without amending the constitution.
In the 1888 session of the Minnesota
Legislature the liberals took the bull
by the horns and passed statutory
net income tax. 1t was upheld in
the courts.
Was it not also the liberals who
initiated and pushed adoption of the
Homestead Preferential Act that. re-
duced assessments for real estate tax
alton purposes on farms, and village
and city homes.
Some Substitute Taxes Worse.
If a sales tax could be called a
good substitute for part of the gen.
eral property tax the conservatives
and reactionaries could be classed as
fighting for lower property taxes.
In previous article it was shown
how disproportionately high general
sales taxes are on individuals in the
smaller income groups as compared
with individuals of high earnings. A
person with modest income paying
$3.50 general property tax annually
would save approximately 1870 Of
that, or $3.50, if general property
taxes for state purposes were elm
mated If that individual has a $4,000
income he would spend approximately
$1,000 for food, clothing and otLer per-
sonal necessities. Paying a go. sales
tax it would amount to $4,000 annC-
ally, or $3.50 more than his savings
on general property. If this indi-
vidual was a farmer and built a barn
containing $4,000 worth of material;
or if he was village or city dweller
and built $4,000 home, he would pay
, OH dooitIOudI 3OO.OV SdlCo IdA.
Legislature Can Do 1t.
In an address by Representative
Youngquist, sponsor of the proposed
Constitutional Amendment, he said:
| LET no one say that the Legislature,
by statutory measures, will lift the
blighting load from property. 1t
won't, because for all practical pur-
poses, it cannot"
That naturally is advanced as an
argument for adoption of the Consti-
tutional Amendment AS has been
said before conservatives and liberals
alike are agreed that general property
taxes have become too high; but GER
tainly, if sincere and consistent the
Legislature can enact statutory meas
ures reducing taxes on general prop
erty by adopting other taxes based On
the ability to pay.
The net income tax can be en-
ployed along that line. The maximum
rate on that is but $50 in Minnesota
1t is higher in many other states
and runs up to 1870 in California