Askov American. [volume] (Askov, Pine County, Minn.) 1914-current, 1937-02-25

especially in the Light OF the last
campaign when the Republican
spokesman at great length told the
voters that they do not intend to foist
sales tax upon this state.
The base of the program is what
is known as a gross income tax, which
is the most vicious form of sales tax
ever proposed. 1t is misnomer. 1t
is tax upon gross receipts and under
this tax the consumer would pay a
sales tax not once but actually three
times. He would pay sales tax on
TIE retail price of the article, sales
tax on the wholesale price, and a
sales tax on the manufacturing price.
The program carries out to nicely
the conservatives idea of taxation,
which is to tax poverty instead Of
taxing wealth. The net income tax,
which is the most scientific tax yet
proposed carrying out the theory of
taxation in accordance with ability to
pay, is entirely abolished and
to give a final touch to the plan to
tax poverty instead of wealth the ON
nibus bill would impose bushel tax
against the farmer four times as
heavy as the tax he now pays. And
this, in spite of the fact that these
conservatives have been shedding
crocodile tears because the admin
stratiOn would increase the tax on
those receiving net incomes of more
than $4,000 a year
AS the Republican tax program
came to light in the omnibus bill. a
most vicious, concerted attack was
in full swing against the Administra-
tons plan to increase TIE net income
tax in the upper brackets. The cam
paign got under way last week at a
packed meeting before the Senate Tax
committee. 1t was attended by the
old gang that wants sales tax, so
that the wealthy would escape their
just contribution to a society in which
they are the chief beneficiaries.
Attempts were made to brighten
people with TIN eats that industry
would be forced to leave the state.
A granite company said it was ready
to do so. Imagine moving the gran
lite out of st. Cloud! :. They COM
planned bitterly about poor companies
just struggling along trying to break
even. when the fact of the matter is
that the high rate of 1919 per cent
applies to corporations only when
their net profits reach the $4,000
a-year mark. The corporation is even
allowed to deduct salaries for owners,
interest on all outstanding indebted
ness and depreciation of plant, ma
chinery and buildings. If the farmer
could do that, he would never have
to pay a penny in taxes.
Some of the spokesman waved phil
anthrOpic. They weren't worried
about themselves, but rather the wage
cuts they would be forced to give their
employees in order to pay the tax.
They forgot" that everything they
pay out in wages is deducted from
the tax. and if they raised wages they
could get by with paying less in taxes
1t all resolves itself into a question
or VINO Is going TO pay for the costs
of social security. If the cOnserva-
tives do not believe in social secur-
ity (Which is unquestiOnably the case)
! they do not dare to say so. Social
security must be accepted as fact
=. but somebody must pay the bill.
The conservatives want the masses,
even those on relief and WPA jobs,
to pay. The issue is very clear. 1t
is: Shall government obtain the
needed revenues by taxing the masses
and thereby further reduce living
standards, or shall government obtain
it from people who would thereby
not be deprived of a single necessity
or luxury in life? The people are
watching the Legislature to see what
their servants will do.