The Telegraph-courier. [volume] (Kenosha, Wis.) 1888-1946, 1903-02-05
THE EXEMPTION OF CREDITS

The Supervisor of Assessments Discusses
Recommendations of Tax Commission.
l desire to express my views as to
the exemption OF credits to the tax
payers of the county as outlined by me
TO the County Board at their January
session.
Under the present Assessment Laws
only part of the credits are assessa-
BILE, and Only part of those that are
assessable are on the assessment rolls.
and they can never all be got on the
rolls. Some districts are more success
full than others in finding them, The
rural districts and smaller villages ana
cities, find by consulting the State
Tax Commission report, find double
and treble the amount according to
population that the larger cities do.
People know more of each others bus
mess in the smaller villages and cities
therefore find more of such property.
AS to stocks and bonds those held by
residents of this State In CORPORATIONS
IN this State are exempt, but those held
tons IN other States are assessable
here. If any are taxable all should be
taxable. If the mortgage, the note.
the contract is taxed, the stocks and
bonds should be. But why tay any of
them? They are conditional property
and represent property already taxed,
therefore tits dou BILE and in many cases
triple taxation.
am aware that the hue and cry for
the taxation of credits is very popular
with the masses, and it would look to
the casual observer that the creditor
should pay the tax on his secureties,
but IN nine cases out of ten it is shifted
on the debtor. Therefore, instead of
oenehtting the debtor, it is putting
onto him heavier burden; and [ think
that to pay the tax once on property he
does not own perhaps more than 10 to
so per cent. of, is sufficient.
To illustrate, take the Knickerbocker
Ice company. The State of Illinois as
sesses their corporate stock. A part of
their property is located in this State.
1t is assessed here, and the stock that
is held by residents of our State is as
BILE, which is triple taxation. In
whatever shape you handle them it is
double taxation to the extent of the
security.
A buys farm of B for $4,000, and
gives b mortgage for $4,000. Now
there is no more property, butathere is
Slo,OOO for assessment instead of S1O.-
900. B sells his mortgage to C, and
deposits his money in the bank for
speculation. Now A has $4,000 for
assessment, B has $4,000 and C has
$4,000, making $50, 900 for taxation. rs
there any more property or value than
before A sold his farm?
A sells horse to B for 500, A takes
BIS note. There is now $500 for as
sessment. Is there any more property?
think not
My reasons for exempting credits
from taxation are:
l. 1t will keep money at home.
2. 1t will place the small creditor on
level with the larger, and secure a
lower rate of interest for the debtor.
The amount of credits taxablein Ke-
nosha county for the past three years
that are on the assessment rolls is: |
1900, $253, 1856; 1901. $3.50, $40; 1902, ST..
1862 And none of us thinks that
half OF them are on the rolls, and more
than possible not that much.
In regard to the taxation of railroad
property, under the ad va1orum system
which our State Tax Commission and |
Governor recommends, it may bring us
more revenue; but ia Michigan where
the cry of the reformer compelled them
to drop the specific license fee and |
adopt the ad valorum or general prop
erty tax, they have not realized so |
large an income as under the former
system, and It may turn out the same |
way in our own State. The railroads |
are paying at the present time in this |
State, under the license fee system.
one-twelfth of the whole tax, and if |
there should be ST 900, 900 added to what
they already pay they will pay nearly
one-seventh of all taxes. Do they own
one-twelfth? If so let them pay taxes
on it, if not then we should not ask
them to.
should like the opinion Of any tax
payer who has given the matter of tax
ing credits little attention, whether
it be for or against.
w. II. HARRISON,
Supervisor of Assessment.