Vilas County news. [volume] (Eagle River, Vilas County, Wis.) 1896-1927, 1905-01-16

indulgence upon undervaluat1ons OF
estates going to their neighbors.
The total amount of taxes paid IN
der the inheritance law to county
treasures from July 1, 1904, to Janu-
airy /, 1905, as reported to the secre-
tary Of state is, $26,403.84. Five per
cent of this amount, or S1,320.l9, is
retained by the county treasurer, max
ing the net receipts paid into the state
treasury $25,O83.65. The total re-
ceipts of the state for the fiscal year
ending June 30th, 1904, were $4,319.77.
The present system Of taxation OF
these companies should be abrogated
and the ad valorem system substituted
| therefor. TIE assessment of their
property should be made by the state
board of assessment, the local rate
should be applied thereto by the local
authorities and the taxes accruing
therefrom should go to the munich
palities in which they are located. The
whole amount for the year 1904 which
these companies paid for city, county
and state taxes was $140,792.72.
Taxation of Telegraph Companies.
The Western Union Telegraph COM
pany paid to the state for the year
1904, a license fee of $11, 822.66. 1t IS
| the only telegraph company doing tusl-
ness ir the state which pays any con-
siderable sum into the state treasury
as such license fee. If this property
we're assessed on its stock and bond
valuation, calling the stock worth 20
per cent. and the fund of indebtedness
being fixed at par and applying the
railway rate of taxation, the sum pro-
duced thereby to the state would be
approximately $4,000. This company
ought to pay a much larger sum as
taxes on it's property than the present
law provides.
Taxation of Life Insurance Companies.
Chapter /. of the Wisconsin laws of
1901, imposes tax of three per cent
on the gross premiums of domestic life
insurance companies collected in this
state, and a license fee of $500 year
on foreign companies. This tax is in
creased by the retaliatory law wnen
applicable.
The legal reserve companies doing
business in this state paid taxes for
the year ending June 80, 1904, in the
sum of $330,46441. Of this amount
84.2 per cent. was paid by domestic
companies, and 1873 per cent. by for
eign companies.
All the life companies combined col
lected premiums in Wisconsin during
the year 1903 in the sum of $8,107,-
9O0.O1. Twenty-seven and nine-tenths
per cent thereof was collected by do
nestle and 721 by foreign companies.
The only tax that appeals to our
sense of justice is tax based upon
the cash value of the policies-that Is
the equity of the policies in the assets
of the company This includes both
reserve and surplus. 1t would be equiv
alent to taxing the policies on their In
vestment value in the hands of the
owner. But, to make the admins
tration of the tax economical and ef-
fective, it should be levied upon the
company.
To avoid double taxation, the value
of real estate and United States bonds
owned by the company should be de-
Quoted from the gross assets before
making the levy, for real estate is
usually taxed locally and United
States bonds are exempt. All policy
i holders in the state would then be
taxed on the same basis and there
l. f01 "a inc1 r, O
public to patronize foreign companies
in preference to home companies. The
tax would be more uniform and more
productive than at present At the
average tax rate in the state the tax
on life insurance values would produce
about 100000 instead Of $278,00O as
under the present law.
Mortgage Taxation.
The mortgage taxation law, so call
ed. of 1903 has proved disappoint-
Iment. While no statistics can be
produced at present to show it's exact
effect, it is matter of common knoWl
edge that the rate of interest in Wis,
consin upon mortgages, as we'll as up.
on OC0or CT0uIIS, Ids uoL UOOA ~
duced since it's enactment.
1t is my opinion that in the present
situation in this state, mortgages
should be restored to the taxable
class of property by tae re-enactment
of the law as it stood before 1903, un
til such time as the legislature can
pass a law for the taxation of incomes
to take the place not only of the tax
alton of credits, but also OF the taxa
ton of most, if not all, other persona
property. The owners of credits shoulc
not be made a favored class by rellev
. ing them from the first duties OF CIT
izenship. Such a course is entirely
undemocratic in letter and in spirit
is unjust and wrong in principle, ano
offers a plausible justification fol
evasion of taxes by Others who suffer
, by the unjust discrimination.
l recommend the passage of ar