St. Paul recorder. [volume] (St. Paul, Minn.) 1934-2000, 1962-10-19
Why Not Accentuate The
Positive

Why 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 7, Minneapolis
TRIBUNE, which describes Minnesota having
tax situation that discourages business.
Even If this were true, why should the Chamber
Of Commerce broadcast 1t? We convinced that it
Is not true and note that the Chambers state
ment of October offers no facts in support Of
opinion that most NIinnesotans would regard as diff
hcult to defend.
In any case, we feel sure that the Chamber Is
Of the studies and surveys which show rather
conclusvey that the question of state taxes is far
down the list of considerations business industry
weighs before moving establishing plants.
High on the list such things the availability
of a skilled and dependable labor supply, good
climate and social-envronmental conditions attrac-
tive to upper-echelon personnel: good schools, cul
tural attractions good recreational facilities good
public health and sanitation programs, etc. These
are all factors in which Minnesota takes big lead
most other states.
There some other remarkable assertions in
the Chambers statement which challenge. For
example: Z" ten state firms carried one fifth of
Ine expense OF running government III h1lIlIeSOIa
in 1861" In that year. it cost $1127 900 900 to
government in Minnesota - exclusive of the cost of
running the federal establishment here. If the Cham
bers assertion means what 1t seems to mean, then
10 firms paid state and local taxes Of $225 900,
or an average Of $22,6oo, 900 each
Evidently the Chamber has figures that not
available to the rest of US, and would like to
evidence supporting this assertion. To put the mat
ter in perspective, Minneapolis Honeywell in its
1851 operating statement reports non-federal taxes
of less than $4,000 900 its entire operation In
Guiding plants in Canada, California, Washington,
Pennsylvania, and elsewhere. Are there 10 Mime
sofa corporations much larger than Minneapolis
Honeywell?
SAYS the Chamber: TN 1869 Minnesota got an
increase in state income taxes which in many of the
lower brackets doubled peoples state income tax
liability" Apparently this Is reference to the $40
head tax which attached to the 1861 (not 1851
income tax measure But attaching it to the income
tax does not make 1t an income tax in any accep-
table meaning Of the term, and we hope that in
future debate taxes both sides win, In the In
terests Of clarity, avoid this sort of confusion.
Finally: The sales tax bill would have raised
q net Of $40 million Of new revenue after replacing
major elements Of the personal property tax :"
We hope that readers Of this statement will bear in
mind that there Is no single SALES tax bin", but
scores Of proposals many Of which mutually
contradictory. A serious statement this subject
ought to define terms so that readers can have a
chance to evaluate 1t. We hope that both Sides In
future debate win be more meticulous 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 tho Chamber Is taking the position
that the sales tax must be a condition Of personal
property tax reform. If that Is the case they might
as well forget about It.