Askov American. [volume] (Askov, Pine County, Minn.) 1914-current, 1936-07-30
Why Penny-Ante Taxes ?

An excellent slogan to adopt for our
state as we'll as the nation would
be Comfort in the homes of all our
people"
How best to bring that about is a
problem not easily solved. There is
no short cut to that happy state OF
affairs, nor is there any one sinele
proposition that will bring it about.
A combination of common-sense, wor-
thy, and wholesome proposals, care
fully thought out by men and women
Of experience, and with diligent work
and cooperation on the part of the
citizenry, we will be on the way to a
better day economically and socially
speaking. 1t is not the loud shOuters
and ranters who will make improve
ments in the affairs of the state and
nation, but those who apply them
selves to the task with thought and
determination.
The subject for discussion is taxes,
but let it be said that while taxes
are important and they have a bear
ing on the social and economic order,
the real and paramount problems con-
fronting our people today are those
of unemployment and high interest
rates. Taxes have a bearing on I'M
employment in that if applied too
heavily proportionately on those in
the lower income classes it makes
for less buying power and consequent
L., nd mi
ment. 1t makes for less trade and
commerce.
Concentrated wealth will battle to
the last ditch to maintain high in
terest rates, las witness the recent
defeat of the Frazier-Lemke farm re-
financing bill in Congress which
called for interest rates of ~ per
cent. Had that proposed legislation
been adopted it would have had a
wholesome effect on all interest rates
throughout the land. However, it
will come up again and again in Con-
gress as did the Soldiers Adjusted
Compensation bill and eventually
more congressman who vote for con-
centrated wealth have been defeated
in coming elections.
Even a Ounce with million dol
lars Tin such case likely interited)
can hardly keep from growing veal
thier with high interest rates pre-
vafling. All he needs do is engage
the services of someone who knows
a little about finance, invest the
money in safe federal. state and mum
icipal securities and the fortune will
automatically grow. If interest rates
were cut in half-say from to 2
per cent-the practical effect of that
would be the same as cutting the
fortune in half. Concentrated wealth
will prevent that as long as possible.
1t is up to the masses to be alert
to their interests.
All the taxes for the state of Min
nesota, its 81 counties, school dis
tricts, cities, villages and townships
all subdivisions of government-col-
lected in 1895 amounted to approx
imately S143,OOO,0OO. Of this amount
rs per cent, or about 100000, 900 was
ON real estate and personal property,
usually termed general property. The
S34,O0O,OO0 was made up from the
following: Gasoline taxes and motor
vehicle license fees. the two COM
bined amounting to about SIT 1000, 600;
railroad gross earnings, nearly four
millions; net income taxes on indi-
viduals and corporations. about 81
millions; liquor taxes, nearly mil
lions; OccupatiOnal and royalty taxes
on iron mining. little over ~ mil
lions; insurance companies, 1% mil
lions; moneys and credits, nearly n
millions; with gross earnings taxes
on telephone, express, sleeping cal
and freight Lines, as well as other
minor taxes to make up the $34,O00,-
900 collected otherwise than on gen.
eral property.
Most peOple-conservatives and lib.
erals alike-are agreed that general
property taxes have become too high
What is the alternative? Shall We
collect more from net income, in
heritance. gift, and estate taxes
moneys and credits, occupational ant
royalty, gross earnings on telephones
apply a mortgage taX-al1 based Oh
the ability to pay-Or shall we sub
NIT to a general sales tax?
Liberals in the Minnesota Legis
lature have shown concrete evidenc,
of their desire to lower general prop
erty taxes by taking the initiative an,
leadership in bringing about passag
of the homestead preferential act AM
adopting the net income tax. Tn
homestead preferential act made 70