River Falls journal. [volume] (River Falls, Pierce County, Wis.) 1872-2019, 1909-01-21
Governor Davidson Points
Out Defects
LEGISLATURE GETS MESSAGE
Urges the Lawmakers to Act-Dis-
cusses Need of Income Tax and
Change in inheritance Tax-Asks
the Discontinuance of Waterways
Commission.


the various state interests. BY far the
most important part of the message is
that portion devoted to taxation laws
and public utilities.
After commenting on the prevailing
general prosperity within the state" the
governor goes on to give an itemized
financial statement of the funds of the
state, which total $742,991; while the trust
funds of the state, divided among the
school fund, the university fund, the ag-
ricultural fund and the normal school
fund, make a total of s6,321, 081. S8. The
estimate of revenues is as follows:
Estimate of Revenues.
Total estimate of revenues,
June 80 1908, to June 30, 1909. sc, 1896, 361 90
Total estimate of expenditures,
June 80, 1908, to June 30, 1907. 5,718, 084 90
Estimated balance, June 80, '09$ |, liz, III. 90
Total estimate of revenues, June
80, 1909, to June 80, 1910. S63, 247 90
Total estimate of expenditures,
June 30, 1909 to June go 1870. 5,170, 175. 90
Estimated balance, June 80,
1910 81, 693 O(2. OO
In the matter of taxation of personal
property the governor declares that 1--WE
are no nearer to the goal now than we
were several years ago. Especially is
this true of cash and intangible person
al property, which may be said practical
ly to escape taxation. The apparent i'm
possibility of dealing with credits as a
basis of taxation caused the majority of
The tax commission in 1903 to recommend
the exemption of all credits. This has
not been done by formal legislative en-
actment, though the fact is that all
forms of credits are virtually exempt
from local taxation This is true, also,
of money the most substantial form of
personal property.
An attempt was made in 1903 to pro-
vide for the taxation of mortgages, but
the act, in fact, resulted in their exemp-
ton. This leaves the best securities not
taxable by law. It is hoped that with the
inauguration of the system Of income
taxation these inequalities may be
righted, and that if it shall be found de-
srable to exempt credits and money,
that the same may be reached through
the income tax.
Law Needs Amending.
AS railroad and other corporations un-
der the state system are required to pay
the average rate paid by the people of
the state, it follows that if large amounts
are added by the tax commission to the
property returnable by the local assessors
the result is that these corporations are
directly benefited in a reduction Of taxes,
and that, in fact, they do not pay the
average rate paid by the people of the
state. In my opinion IIle statute SnOul0
be amended so as to forbid additions be-
ing placed on the general property of the
state based on the fact that personal
property is not reached by the local as
SCISSORS. Such power over the amount of
tax to be paid by any corporation should
not be conferred on commission.
Another matter entitled to considera-
ton is the effort made by the legisla-
ture of 1906 by the enactment of chap
ter 259, providing a remedy, where the
local assessment is not made in COM
pliance with the law, authorizing the tax
commission, after a hearing, to order
a reassessment of the property of the dis
trict. If the act is, in fact, unconsti-
tutionality may be authoritatively de-
termined If the act is, in fact, unconsti-
tutional, then the legislature is power
less to remedy the very evil which
strikes at the root of all taxation prob
lens, for if the local assessment is I'M
just, all assessments based thereon be-
come, also, unjust.
Fundamental Laws at Fault.
The evil effects of such doctrine is not
limited to taxation alone, but extends to
other matters as well. If the Legislature
has no power to correct the evils arising
by compliance with the statutes as to
local assessments. then such assessments
can never be better or more just than the
particular locality where they are made
desires them to be- If this be true then
it is well to consider whether our funda-
mental law should not be amended so as
to permit some supervision by a cen
trail authority over local assessments.
If this statute is finally held to be I'M
constitutional as an interference with
self-gOVernment, still it is safe to assume
that the people are vitality interested in
a just and equitable system of taxation,
and that if it shall appear necessary to
abandon some of the present methods of
local assessment in order to secure a just
system, they would not refuse to give
up so much of the right of self-govern-
ment as to permit a change in a matter
of such vital interest to the welfare of
the whole people of the state.
At the last general election an amend
mcnt to our constitution was ratified,
which gives express authority to the leg
islature to impose a tax on incomes, and
to provide that they be graduated and
progressive, and that reasonable eXemp-
tons may be provided.
Through this amendment it is proposed
to furnish some relief resulting from
the failure which has attended the tax
alton of personal property. Recently
much has been written and keen inter-
est manifested with respect to this form
of taxation. The amendment having
been adopted, authorizing the legislature
to employ this form of taxation, it is
evident that the matter has passed from
the realm of discussion to one calling
for practical legislative consideration.
In providing for such a tax reasonable
exemptions should be allowed, for it is
matter of first Importance that the
welfare Of the citizen should have due
consideration, since no system of taxation
can. or ought to be, employed, which en-
trenches in it's exactions too far upon the
neceSSaries of life. 1t should, therefore,
be so regulated as to relieve the laborer
with small earnings, and those whose SAL
aries are not more than sufficient to sup
port themselves and their families.
In the absence of any recommendation
by the tax commission on the subject
I can do little more than call your at
tention to the Importance of the inter
ests involved. and refer it to you as a
matter requifing. at your hands, no small
measure of legislative wisdom in SUI
cessfully dealing with it.
inheritance Tax.
The act providing for a tax on trars
fers of property by will, or under the
intestate laws of the state. has proved to
be very important as a revenue measure.
while, at the same time. it is not burden
some to those paying it. liberal eX-
emptions are allowed. The act has been
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Shoplifters' Clever Device.