The Telegraph-courier. [volume] (Kenosha, Wis.) 1888-1946, 1903-01-29

THE report of the state tax COM
mission has been sent to the legis-
lature. In many respects this report
is one of the most important contri-
buttons to tax literature that has been
made in many years and it will be
studied by the students of the taxation
problem not only in this but in other
states. The report covers $50 pages
and deals with every phase of the tax
alton problem. The conclusions of
the commission are stated with clear
ness and accuracy. Much of the
matter in the report of the commission
was contained ia the message of the
governor, but the board takes issue
with the executive on the question of
taxation of credits and recommends
that all existing laws for the taxation
of credits be repealed, The test of the
report relating to the taxation of
credits aud the ground on which the
recommendation for the repeal of the
present law relating to the taxation of
Intangible property is based, is as
follows:
1.-The laws of the state require
the taxation of credits of every
kind due from solvent debtors and the
taxation slso of all kinds of property
other than credits, unless exempted
for special reasons, without deduction
or diminution in value on account of
debts owing. In this respect the Wis
consin system is substantially the
American states. In recent years the
subject has been given careful con-
sideration by economists and others
we'll fitted by education and training
to ascertain facts and reach correct
conclusions. Their verdict is practi.
callY unanimous in condemnation OF
ali laws requiring the taxation OF
credits as property-at least we have
act learned of any fairly capable, un.
biased investigator who has given
such laws substantial approval. The
primary conclusions upon which the
general verdict of condemnation is
predicted may be summarized in the
following:
1. Laws requiring the direct tax
alton of credits as property without
corresponding reduction in the assess
ment of the property of debtors neces.
sarily result Ia duplication OF values
aud double taxation, and cannot fail
to produce inequality and injustice, SC
far as such laws may be inforced.
2. Such laws are incapable of en-
forcement, except partially.
), When partially inforced, the in
justice to those who are taxed is much
greater than if all credits were taxed
alike; and this whether the burden is
borne by the few who are taxed or is
shifted to their debtors.
: Incidentally, the receptions and
other practices resorted to in evadinp
the attempted enforcement of such
laws have degrading moral effect in
the community.
>. Laws permitting the amount
or credits assessed to be deducted from
the valuation of the property of debt
ors do away with the evil of double
taxation and for that reason are inf
nitsly preferable TO laws which do not
permit such deductions.
., But under laws permitting such
deductions the tax imposed upon the
creditor is ordinarily shifted to the
debtor in the form Of higher interest
or otherwise, with something added to
cover the creditors risk.
2. Laws designed to prevent such
shiftings are impracticable and serve
to injure rather than to benefit the
deotor, the only person for whose pro-
lection they are intended"
The other important recommends.
tons of the reports are the ad-valua-
ton systems of taxing valuations and
the creation of a state board to value
this property, the repeal of the one
mill tax law, and the perfection of a
state budget,