BUREAU FOR RESEARCH IN MUNICIPAL GOVERNMENT When you have read this copy of Minnesota Municipalities place a one- MINNESOTA= MUNICIPALITIES Published Bi-monthly by the LEAGUE OF MINNESOTA MUNICIPALITIES 25 CENTS PER COPY $1.25 PER YEAR Officials of member cities receive subscriptions to Minnesota Municipalities Write today for free booklet-"Stanolind Paving Asphalt" STANDARD OIL COMPANY 910 Michigan Ave. (INDIANA) CHICAGO, ILLINOIS PUBLISHED BI-MONTHLY BY The League of Minnesota Municipalities Entered as second-class matter April 28, 1916, at the Post Office at E. L. BENNETT, Editor Vol. III DECEMBER, 1918 Minneapolis, Minn. Number 6 Taxation by Oversight It is a fundamental principle in American Government that neither the Federal Government on the one hand nor the state and local governments on the other can tax or be taxed by the other, either directly or indirectly. So far as we know, this principle is observed strictly by the state and local governments. The duties and imposts levied by the Federal Government operate indirectly and in part to increase certain expenditures of the other governments, but in indefinable amounts. But the federal revenue act of October 3, 1917, contains a provision, effective since November 1, 1917, under which states, counties, and municipalities have been paying a very appreciable sum as Federal taxation. It is in the item of first class postage. The extra cent was added not at all as charge for the postage service, but as an outright excise tax. First class postage at the old rates was more than paying it way; it overcame the notorious deficits incurred by second class mail matter, and generally earned enough more to leave a surplus. The revenue act imposing the increase directs that its proceeds be turned into the treasury directly, as revenue. Under these provisions states and municipalities have been paying, along with other users of the mails, excises of fifty and a hundred per cent on large parts of their postage bills. Whether the feature described was foreseen. when the bill was in Congress we do not know. Apparently no efforts were made to correct it, although it would seem possible to do so rather easily, by an adaptation of the penalty envelope. Now that the war is ended any considerations which may have justified such taxation of funds which themselves are the proceeds of taxation cease to have any force whatever. If the postage tax is to be removed altogether that will take care of it. If the extra cent charge is to be continued, Congress at least should provide an exception in the case of matter mailed by other governmental bodies. You Can Still Buy W. S. S. Reconstruction Begins The cities and villages did much to make possible the successful prosecution of the war to an early end: They gave unstinted aid in the task of enrolling armies; they postponed needed public improvements so that more materials and more labor should be available for supplying those armies; they submitted to diminished services and increased rates from public utilities upon the representation that such submission was a war necessity. The catalogue of war services rendered would be a long one, were all the items told. The period of reconstruction is here, sooner than we dared anticipate it. It must not be a period of relaxation, if municipalities are to meet their responsibilities, for those responsibilities are more exacting than when the highest duty was to co-operate with and to comply with the plans of the federal government. Now, in order to lessen the hardships of readjustment and perhaps to avert those of un-employment, municipalities must go forward with their normal activities, with their public works and public improvements, on a more extensive basis than ever before. And in this work the federal government cannot direct or participate; manifestly it will no longer ask suspension or postponement. The responsibility falls upon each municipality alone, and in co-operation with other municipalities in like circumstances. Some municipalities have plans already made for these improvements which we know should now be undertaken. These should immediately get the work under way. Other municipalities should lose no time in having their plans made. In many cases it will be necessary to vote and issue bonds to finance such operations. But in Minnesota the council may issue securities for sewer construction without waiting for a popular vote. And there are but few municipalities which do not need sewer extensions or sewer systems: the sanitary collection and disposal of sewage is the major element in the unconditional defeat of typhoid. Other improvements-waterworks, street grading and pavements, street lighting systems, sidewalks and curbs—will follow in regular course. If our municipalities promptly and resolutely undertake the projects mentioned they will be doing much to fulfill the expectations placed upon them. It is true that reconstruction in America does not in general total physical rebuilding. What it means is new construction and new building. The opportunities and the responsibilities are no less than imperative in either case. After the Fire France intends to rebuild every one of her hundreds of villages and cities which war has wrecked. But she does not intend to rebuild them haphazard, or as they were before. She will build according to plans which will utilize the best opportunities, and realize the finest possibilities of the localities. The plans for many are made already, others are making; and all are likely soon to be in process of execution. |