The Mason City Globe-Gazette from Mason City, Iowa on April 19, 1934 · Page 8
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April 19, 1934

The Mason City Globe-Gazette from Mason City, Iowa · Page 8

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Mason City, Iowa
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Thursday, April 19, 1934
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Page 8
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EIGHT MASON CITY GLOBE-GAZETTE APRIL 19 1934 DEAN SUPPORTS THREE-POINT TAX IN FARM SPEECH New Bill Characterized as "Thoroughly Sound" by Representative. Defense of the three-point tax bill enacted by the recent extra session of the.legislature and criticism of the gross income tax plan were contained in a talk given Wednesday night by Earl Dean, Cerro Gordo county representative, at a Lake - township Farm Bureau meeting in the "home of Frank Rich. The new tax bill was characterized as "thoroughly sound" and "very equitable" and the dollar turn-over tax was attacked as having no fixed relation to the tax question. He maintained vigorously that it's no tax system for the farm er. Excerpts from letters receive' from H. A. Ustrud, lieutenant gov ernor of South Dakota, were read in which the gross income tax wa pictured as the most "unjust and inequitable tax system that wa.. ever placed on the statute book o any state in the union." Mr. Dean opened his talk by in sisting that the new tax bill is as complete a replacement tax as it is possible to make it. For Poor Belief. "The revenue," he said, "from these taxes--the personal net income tax, the corporation net income tax and the retail sales tax-are to be credited against the sec' ond installment of the real property tax. Six million dollars will be taken out for state purposes and three million dollars for poor relief before the money is reallocated to the Quality Only . . At Fair Prices A Sweeping Clean-Up of BOY'S BROADCLOTH SHIRTS A fine assortment of varied patterns in plain colors or fancies. Plain colors in blue, tan, green and white. To select several at this price we believe a thrifty thing to do. Junior Sizes--6 to 12 Years sj. Boys' Sizes--121/2 to 14'/ 2 TAX Zc Boys' Sweat Shirts in red, orange, blue and silver gray. Just the thing to gfl save laundry O»jC Same in Men's.... 98c Boys' zipper front mesh shirts in. solid no colors «7OC Same in SI en's.. $1.19 QUALITY COUNTS counties on the basis of assessed valuation. "The six million dollars is now raised by a property levy and had there been no new means devised for raising the poor relief money that also would have been assessed ·against property, so as a matter of fact the total revenue raised from this tax measure is a direct replacement of the real property tax. "There was no bill before the general assembly which had as ironclad a replacement feature as is in this three point bill. The county will have funds allocated in the proportion that its assessed valuation bears the total assessed valuation in the state and the individual in the county will be allocated funds in the proportion that the assessed valuation of his property bears to the total assessed valuation of the county. The real property tax is levied as it has been heretofor and the funds from the three point tax bill are credited against the second installment. Makes Them Pay. "This bill makes everyone a tax payer, as everyone will pay tax on articles bought at retail. People with large incomes mil pay more money in retail sales taxes than poor people because as a rule they are greater spenders, but the poor man will pay a larger proportion of his income for articles sold at retail than the rich man. This inequality has been balanced in the new tax- bill by imposing a personal net income tax on the person with a large income so that he pays both the-sales tax and the net income tax, whereas the poor man only paj's the sales tax. "Since a portion of the property tax still remains and rich men as a rule own much more property than poor men. the rich men will carry a much heavier property tax load than will the poor man. "As you can readily see, this tax plan is based on the theory of 'ability to pay,' which all students of taxation concede to be the most D. K. LUNDBERG COMPANY OBSERVES FOURTEENTH ANNIVERSARY ] equitable basis for taxation. One-Fourth of Load. "It is estimated that this tax bill will raise apporiximately twenty million dollars, which is about one- fourth of the present tax load. Th property tax levy for Iowa this yea is about eighty million dollars. Th revenue from this tax bill will re duce that amount to sixty millio dollars, which is reducing the prop erty load to almost one-half of wha it was in 1930 when the total prop erty tax in the state amounted to ; lundred and ten million do!lars.~Wi "eel that this is a substantial reduc tion in property taxes. "At thia time the advocates o: -he gross income tax are campaign- ng for the repeal of the present tax aw and for the substitution of the lollar turnover tax for all taxes, wish to point out that this sys- em of taxation is visionary, un- vorkable, unfair in its distribution f the tax burden and favors the .ch, throwing the main burden of axation on the poor people. ,,·,'"In ...the first place, dollar, turn- ver has absolutely no fixed rela- ibn to profit--and profit is the thing from which we must pay our taxes if we are to stay in business. There are probably no two industries which have the same relation between profit and dollar turnover. Why then, should be base our tax collection on a system which would take a large proportion of the profit of one industry in the form of taxes and -take a very small proportion of the profit of some other industry. Gives Comparisons. . "As an illustration, I am a. farmer and we will suppose I have a 55,000 gross income from cattle feeding. The tax at % of 1 per cent would be $25--this is just a start, of course, on what I would have to nay. In a good year I probably would make 51,000 on the transaction. The thousand dollars is what I have to live on. Compare that with a man drawing a 55,000 salary on Lundberg's Double Store on East State^-cr building a t 2 6 East state ' Street Has Shown Remarkable Growth in 14 Years. The D. K. Lundberg and company ready-to-wear store, 26-2S East State street, Thursday observed the fourteenth anniversary of its establishment in Mason City. Mr. Lundberg, formerly connected with large specialty shops and department stores at Minneapolis, St. Paul and Des Moines, came to Mason City 14 years ago. He i'elt certain at that time there were un- three times the last time by addi- usual opportunities in Mason City. The growth of his business since has justified his faith in the city. Store Doubled. When Mr. Lundberg opened a small store at 28 East State street April 19. 1920, he had but two sales persons. In the period that followed the size, ot" the store has been enlarged until it is more than doubled. At present, after weathering several years of depression, the institution has an operating personnel of 21 persons, including saleswomen, fitters and bookkeepers. The original store was enlarged tion of a balcony, under which was placed the alteration room. One of the most significant moves in Mr. Lunclbcrg's expansion program, however, was the leasing frum Judge Joseph J. Clark of the old Cobb- street. Vurchaseil Building. In 192G Mr. Lundberg purchased the original -store building from J. F. Shaible and from that date he ha$j been adding improvements to unify and harmonize the two elements of the double store. The success of the business, it is pointed out, has justified Mr. Lundberg's faith in East State street as a business thoroughfare. He was certain when he came here, he said, that Mason City was more than a one street town and the stretch between the buildings in tracted his attention. two largest business the community at- lt is unlawful to buy votes, except when scared congressmen appropriate public money for the boys.-Midwest Review. ORGE ACTION TO CURB LAWYERS Grand Jury Scores Practice of Appealing to Friends in High Office. WASHINGTON, April 19. u)--- President Roosevelt has received recommendations from a District of Columbia grand jury that action should be taken to "prevent political lawyers from presenting claims for clients to the friends of such lawyers in high public office." The grand jury report, made public today, suggested' administrative and legislative action "if necessary," to stop the practice. The recommendations were forwarded to President Roosevelt, the war department and the department of justice by Leslie C. Garnett, United States attorney. They were adopted by the grand jury after an extensive investigation of army contract awards, during which numerous witnesses described dealings with Joseph Silverman, New York dealer in surplus war supplies. The grand jury, which returned no indictments in the army contract investigation, was criticized by Justice Peyton Gordon of the District of Columbia supreme court for making the report because, he said, such procedure was "unauthorized." A Chinese general who staged an unsuccessful revolt has retired to seclusion because he needs "more education." If he will consult the sayings of General Forrest; who never felt the lack of education, he might discover that what he needs is more men.--The New York Sun. One Man and T w o ! Women Get Divorces in District Court August Groh, Mrs. Daisy M. Holt and Mrs. Lillian Breight have been granted divorces by Judge M. F. Edwards in district court, each action being brought on grounds of cruel and inhuman treatment. The Grohs were married here in 1923 and have three children. The decree made no permanent disposition of the custody of the children- but left them in the care of their father for the present. The Holt couple was married -in Ft. Dodge in 1916. Mrs. Breight was married to Casper Breight in Chicago, June 21, 1924. \ 1 HOW'S YOUR KITCHEN? A Kitchen is a mighty attractive room these days, that is, when it is fitted with some of the newer furnishings. One of the best ways to make your .everyday life brighter is to fix up your kitchen. Special values at the . .. Joe Goss FURNITURE STORE 312 South Federal Ave. D. K. LUNDBERG BUYS GOOD FURNITURE COIL SPRING, 90 Coil Helical Tied Top. d»/» fir" $6.9o 45-LB. COTTON ·MATTRESS . $5.75 STEEL BED, (Walnut Finish) $5.75 .VELVET RUG, 9x12 (Regular S29.50) . $23.50 WALNUT OCCASIONAL TABLE (Regular $7.50) SECRETARY DESK, (Regular §37.50) . $27.50 3-PIECE MODERNE BEDROOM SUITE (Regular §95) 2-PIECE MOHAIR LIVING ROOM SUITE (Regular $99.50) which he -would pay S25 tax. He has the 55,000 to live on. He is taxed 525 on a S5,000 income, while I am taxed S25 on a SI,000 income and I \ would still be taxed the 525, even i though I had a loss. Either I'm pay- i ing much too much or the salaried ; man is paying much too little. This is only one of many gross injustices done by a flat rate gross in- · come tax. ' "Secondly, interstate commerce cannot be taxed by any state un- I der any system of taxation, because i it is specifically prohibited by the I federal constitution. The tax com- j mittee had this forcefully brought to its attention when it attemped to devise a way to collect the retail sales tax on mail order business. It j ivas able to find no way in which .hat could be done. The elimina- ion of interstate commerce from ie taxable business would take out a. large proportion of 'the revenue anticipated by the' gross income tax-f. , advocates; " | "In the third place the tax would ; lyramid many times on the ordi- lary products, such as food products, that the average man has ,to iuy, while many of the higher jriced articles and luxuries would mly pay one tax. The high priced .utomobile is one of the articles hat would pay only a single tax. 'In this connection it .is very evident that chain stores and businesses of that type have a distinct advantage over the local businessman. The local businessman buys roni local wholesalers and distributors, where there would be several dollar turnovers, whereas the chain tore article never changes hands rom the time it enters the state un- il it gets into the hands of the con- urner. This condition of course vould make the chain store a very luch more formidable competitor | or the local merchant. Would Pyramid, Claim. 'In the fourth place, the gross in- ome tax will not collect nearly as much tax from the person with a arge income as will the net income, ax. In the case of a large salary, he gross and net are almost the same and the present tax bill would ollect a 5 per cent tax on it, while he gross income would collect only i of one per cent. "Finally, the gross income tax is | general sales tax which would : yramid several times and finally : ; paid by the ultimate consumer." j Mr. Dean quoted at length from j itters written by the lieutenant' overnor of South Dakota. That of-1 'icial attacked the gross income tax ' i for having failed to raise the income i it was expected to raise, for creat-· ing new burdens of taxation worse | even than under the property, rtax I plan and for permitting to go free i several corporations,. including the ; Home Stake Mining company, most' able to pay taxes. ; "I feel safe in saying," Mr. Dean quoted from one of the Ustrud letters, "that 80 per cent of the people in South Dakota are strongly opposed to the gross income tax and ! the more they see of jts workings, the stronger "they become in their opposition. I hope you will succeed i in averting this calamity to befall | your state." | to your throat S-PIECE WALNUT DINING ROOM SUITE (Regular $95) tpf»{\ ff\ $89.50 SEE THE CROSLEY TRI-SHELVADOR ELECTRIC REFRIGERATOR $ m jTA DELIVERED AND 3S/.3II INSTALLED 10 MONTHS TO PAY NO INTEREST -- LONGER TERMS IF DESIKED TYLER-RYAN FURNITURE CO, 23 SECOND STREET S. E. Mrs. Bade, Mother of Mrs. Mutschier, ! Succumbs at Dubuque ' Mrs. Theresa Bade, mother ol j C. E. Mutschier. 519 Eighth street j southeast, diet! at Dubuque Wcdnes- I day noon following a long illness, i She was 70 years of age and had ! lived at Dubuque practically her i entire life. Mrs. Bade is also survived by one son, Walter W. Bade of Dubuque. and a grandson, William J. Mut- schier, student of the Iowa State college at Ames. Funeral services will be held at Dubuque Friday and interment w i l l . be in Limvcod cemetery of Di.i-. buque. ; 50 round 9 so firm, so fully packed--no loose ends that's why you'll find Luckies do not dry out " It's toasted " \Vc think you'd be impressed if you saw Luckies being made. You'd see those clean, silky center leaves--and you really wouldn't have to be a tobacco expert to know why farmers get higher prices for them. They are the mildest leaves--they taste better. You'd be impressed by Lucky Strike's famous process -- "It's toasted"--designed for your throat protection. And we know that you'll be truly fascinated when you see how Luckies are rolled round and firm, and fully packed with long golden strands of choice tobaccos. That's why .Luckies "keep in condition"--why you'll find that Luckies do not dry out--an important point to every smoker. And you'll get the full meaning of our statement that Luckies are always in all-ways kind to your throat. Y Luckies are all-ways kind to your throat D. Only the Center Leaves--these are the Mildest Leaves CopjrlElit. 1931. Th? American Tobacco C 1 "Ss

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