The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1937-05-06
Differences ON
TAX BILL were
NOT MAJOR ONES
State Must Spend 100000 for
a Special Session to Settle
Minor Differences.

Deploring the necessity of spending
more than 100000 for special session
of the legislature to obtain an agree
ment on the state tax problem, officials
of the Minnesota Federation for Tax
Reform in an analysis of the conference
proceedings on the tax bill, showed that
agreement had been reached in all the
major differences over rates and the
subjects to be taxed.
Constant Larson of Alexandria, preSi-
dent of the federation, said that COM
plete agreement between the houses was
blocked only by the efforts of "a small
number, who for personal or political
reasons were anxious to force the calling
of a special session." and added that
the three proposals upon which the con-
ference committee finally broke up were
only minor differences seized as pre-
texts for break.
A special session will cost from $780,
600 to $125, 900, according to estimates
made by state officials this week.
Members Of the legislature hitherto
have had to serve in special sessions
without pay, but in the session to be
called this year members of the house
will receive $40 a day.
Mr.. Larson said that the three points
of difference left between confereeS of
the senate and house when they finally
broke off their negotiations were re-
latively minor matters as compared to
the big differences that had been COM
promised. AS listed by Senator F. j.
Miller, the only points left unsettled
were:
81. Whether the ALLEGATION of the $40
per pupil to be distributed to schools
from proceeds of the income tax should
be on the basis of compulsory school
age g to 16) in the district or on the
basis of average daily attendance. The
house favored the compulsory school
age basis, while the senate favored the
average daily attendance of pupils be-
tween and 18. The senate proposal
would have given the schools about
S1,O00,0O0 more on the $40 distribution.
2. Whether to permit a person to
deduct the income tax paid to the fed
figuring the net income to be taxed
The senate confereeS insisted that this
should be allowed, that it was not fair
to tax a man on income that was paid
out as tax, that this was tax upon
tax.
3. Whether to follow the senate OF
house method of computing the tax.
1.-The conference committee agreed on
rates and all the major provisions OF
the BILL" Mr.. Larson said in his report
The senate confereeS agreed to in
crease the tax on corporations to TO
for the first year and 613 % for the
second year. The two houses agreed or
increases in rates on individual incomes
The rates of tax imposed on mining
companies through the occupationa,
tax and the royalty tax were increased
from 6 per cent to 9 per cent. Moneys
and credit taxes were increased to
mills. A corporate excess tax on utili-
ties was placed in the bill, and rates Of
increase on the gross earnings taxes or
other utilities decided upon"
Senator Gerald T. Mullin, Mime
apolis, liberal and spokesman of the
Minnesota Federation of labor on labor
measures in the upper house, said:
"Just who the so-called liberal con.
ferees refrained from accepting thu
most drastic tax bill ever presented tt
any legislature in the state of Min.
nesota and so far as know the highes
of it's kind in the United States is thu
question that body must answer to tn.
people. 1t is clear and indisputabl,
that the responsibility to pass an AIDE
quate revenue measure is that of tn.
house, and the house alone"