Askov American. [volume] (Askov, Pine County, Minn.) 1914-current, 1936-08-06
income man would pay but sc on a
20 retail sales tax.

income man would pay but SC on a
20 retail sales tax.
Wealthy business men to whom an
increase in living cost is of little i'm
portance, hope to shift the burden
from income taxes, gift, inheritance e.
estate and such other taxes based on
ability to pay, which actually get at
the source of the wealth.
Masses Make Necessity Purchases.
1t must be remembered that 500
of all purchases of commodities and
services in the United States are made
by people with earnings of less than
$4,000 annually.
A sales tax means that whenever
anybody buys anything, he pays for
the article, and in addition, a certain
sum to the government. 1t is retro
| active, bears no relation to profits,
burdens unduly the mercfa ant doing a
| large volume of business on a small
margin Of profit, and applies equally
to gross receipts yielding loss or
profit.
The sales tax cannot raise enough
revenue to replace all property taxes.
1t has been estimated that a go gen.
eral sales tax in Minnesota would re-
place the entire state property levy,
but the state property levy is only
about 1870 of the total tax collected
in the state, the 81 counties, all the
school districts, cities, villages and
| townships.
Must Have Buying Power.
Articles have been published in
newspapers about some states paying
off indebtedness through applying
general sales taxes. 1t is granted that
much revenue can be raised through
sales taxes. But what is the result?
When the buying power of the masses
is reduced somebody suffers and GER
tainly by this time any student of
government and economics ought to
know that one of the pressing prob
lens confronting not only the state
| but the nation, is the necessity for
more buying power on the part of the
masses. We cannot squeeze blood out
of turnip.
We all want good roads and good
institutions for the unfortunates be
maintained. We do not care to have
public libraries closed. We want to
maintain our parks, police and fire
protection, health, and many other
governmental services.
fNhnr0fnro hof
penses of state remain about the
same. (they vary little from year to
Year, we must apply more such taxes
as are based on ability to pay if we
are to cut general property taxes.
Retail sales taxes is only backward
step.
We talk about an American stan
dard of living. Let us also have an
American standard of taxation and
not have our people reduced to paying
pennies over retail counters daily for
the maintenance of government.
Local Merchant Hit
| The sales tax would make tax col
1ector of every retail merchant and
|
advantage in competition with mail
order houses in other states. The re-
tail sales tax cannot be collected on
interstate commerce.
The general sales tax will affect
$3.50 of our population unfavorably
The go who enjoy huge incomes will
of course, benefit.
COMMON SENSE denounces the tax
system which cuts down the purchas.
ing ability of the great majority OF
our people and builds up even larger
surpluses for capital.
The next and final article will dwell
principally upon the proposed con-
stitutional amendment No. to elm
mate taxes on general property for
state purposes.