Grant County herald. [volume] (Lancaster, Wis.) 1850-1968, 1909-01-20

mitted at the outset that so far as cred
its are concerned, they escape taxa
ton, and yet in fixing the value of the
property of the state as basis for the
for the imposition of railroad and 9TH
er taxes annually assessed by the tax
commission, millions of dollars in mon
eys and credits are added by the COM
mission to the property assessed local
ly, on the ground solely that large
amounts of such property escape taxa
ton.
Property not taxed in a community
necessarily increases the rate paid on
real and personal property, which, in
fact, is taxed. The local taxpayer
therefore, pays an increased rate be-
cause of omitted property.
Corporations Directly Benefited.
AS railroad and other corporations
under the state system are required to
pay the average rate paid by the peo-
pie of the state, it follows that if large
amounts are added by the Tax Com
mission to the property returned by
the local assessors, the result is that
these. corporations are directly bene-
fitted in, reduction of taxes, and that,
in fact, they do not pay the average
rate paid by the people of the state.
In my opinion the statute should be
amended so as to forbid additions
being placed on the general property
of the state based on the fact that
personal property is not reached by
the local assessors. Such power over
the amount of tax to be paid by any
corporation should not be conferred on
a commission.
Another matter entitled to consider
alton is the effort made by the legis-
lature of 1905, by the enactment of
chapter 259, providing remedy, where
the local assessment is not made in
compliance with the law, authorizing
the Tax Commission, after a hearing,
to order a reassessment of the proper
ty of the district. Experience has
shown that local officers do not, at
all times, in making assessments, obey
the mandate of the law, and that many
local assessments are made which
have no semblance of justice or equity
in them. This act was designed to
remedy that evil. 1t was carefully
drawn, and if enforced would have
been of great benefit in compelling
compliance with the law. The Tax
Commission proceeded under the stat
ute for a short time and caused re-as-
sessments in a few instances in dis
tricts where it was shown the local as
SCISSOR had not complied with the
statute Later the commission asked
the opinion of the attorney general as
to the constitutionality of the act.
That officer held the act unconstitu
tional, as being an unauthorized inter-
ference with local elf-government. 1t
has never been tested in the courts,
and as the principle involved is Of
great Importance, some effort should
be made to enforce the act to the end
that its constitutiona1ity may be au-
thoratively determined.
If the statute is firmly held to be I'M
constitutional as an interference with
self government, still it is safe to as
sumo that the people are vitality inter-
ested in just and equitable system
Of taxation, and that if it shall appear
ent 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-government as to
permit a change in a matter of such
vital interest to the welfare of the
whole people of the state.
Income Tax.
At the last general election an
amendment. to our constitution was
ratified, which gives express authority
to the legislature to impose tax on
incomes, and to provide that they be
graduated and progressive and that
reasonable exemptions may be pro-
vided
Through this amendment it is pro-
posed to furnish some relief resulting
from the failure which has attended
the taxation of personal property. The
amendment having been adopted, au-
thorizing the legislature to employ this
form of taxation, it is evident that
practical legislative consideration is
needed.
1t is generally conceded by political
economists and writer's on the subject
of taxation that income is the most re-
liable test by which to measure the
amount a citizen ought to contribute
toward the support Of government.
Under property lax laws, property
which brings no income to its owner
is taxed at the same rate, if Of the
same value, as that on which the own
er derives a revenue. This is an in
justice.
Under the income system a tax is
not levied where there is no profit,
but awaits it's demands until the own
er derives an income from his invest
ments.
Great diversity of opinion prevails
as to the practicability of successfully
enforcing any system of income taxa
ton. There is nothing new in the idea
that such a system is just, even
though Il imposes taxation with refer
onoo 70 +,a ability of the nerSOn uDOn