Minneapolis spokesman., 1962-10-19
Why Not Accentuate The
Positive

Why are business organizations that sup
posedly devoted to stimulating industry and attract
ing enterprises to state continually putting
out unfavorable and sometimes inaccurate propa-
ganda about Minnesota?
This has happened again, in a most remarkable
statement by the Minneapolis Chamber of Com
merce, published in the October T. Minneapolis
TRIBUNE, which describes Minnesota having
tax situation that discourages business.
Even if this were true, why should the Chamber
Of Commerce broadcast it? We convinced that it
is not true, and we note that the Chambers state
ment Of October offers no facts In support Of
opinion that most Mnnesotans would regard as diff
ficult to defend
In any case, we feel sure that the Chamber Is
aware Of the studies and surveys which show rather
concusvely that the question Of state taxes is far
down the list Of considerations business industry
weighs before moving establishing new plants
High on the list such things the availability
Of skilled and dependable labor supply, good
climate and socal-environmental conditions attrac-
tive to upperechelon personnel: good schools, cul
tral attractions, good recreatonal facilities good
public health and sanitation programs, etc. These
all factors in which Minnesota takes a big lead
over most other states.
There are some other remarkable assertions in
the Chambers statement which challenge For
example, ". ten state firms carried one fifth of
in 1861" In that year. it cost $1,127 900 to run
government in Minnesota - exclusive of the cost of
running the federal establishment here If the Cham
bers assertion means what it seems to mean then
10 firms paid state and local taxes Of 1925 00O0 000
or an average Of $22, 900 each.
Evidently the Chamber has figures that are not
available to the rest of U.s. and would like to
evidence supporting this assertion. To put the mat
ter in perspective, Minneapolis Honeywell in its
1861 operating statement reports non-federal taxes
Of less than $3.50 900 its entire operation in
cluding plants in Canada, California, Washington
Pennsylvania, and elsewhere. Are there 10 Mime
sofa corporations so much larger than Minneapolis
Honeywell?
Saws the Chamber: Tn 1859 Minnesota got an
In state income taxes which in many Of the
lower brackets doubled peoples state income tax
liability" Apparently this Is a reference to the $40
head tax which attached to the 1861 (not 1887
income tax measure But attaching it to the income
tax does not make it an income tax in any accep-
table meaning Of the term, and we hope that in
future debate on taxes both sides WILL in the In
terests Of clarity, avoid this sort Of confusion.
Finally: The sales tax bill would have raised
a net Of $46 million Of new revenue after replacing
major elements Of the personal property tax :"
We hope that readers Of this statement viii bear In
mind that there Is no single "sales tax bilI, but
scores Of proposals many Of which mutually
contradictory. serious statement this subject
ought to define terms so that readers can have
chance to evaluate it. We hope that both sides, in
future debate, will be more meticuous about this.
The Chamber is also under the Misrepresentation
that every major tax study in Minnesota" has
commended the sales tax This Is simply not correct.
We note that the Chamber Is taking the position
that the sales tax must be q condition Of personal
property tax reform If that Is the case they might
as well forget about It.