Eagle River review. [volume] (Eagle River, Wis.) 1890-1927, 1909-01-22

times. in making assessments, obey the
mandate OF the law, and that many local
assessments are made which have no sem
blance Of justice or equity in them. This
act was designed to remedy that evil. lt
was carefully urawn, and If enforced would
have been of great benefit In competing
compliance with the law. The tax commits
sion proceeded under the statute for q
short time and caused reassessments in a
few instances in districts where 1t was
shown the local assessor had not complleQ
with the statute Later the commission
asked the opinion of the attorney general
as TO the constitutionality Of the act. Tnat
officer held the act unconstitutional, as pc
Ing an unauthorized interference with To-
tested in the courts, and as the principle
involved is of great Importance, some er-
tort should be made to enforce the act 10
the end that its constitutionality may De
authoritatively determined. If the act Is,
in fact, unconstitutional, then the Leg1sla-
ture is powerless to remedy the very evli
which strikes at the rooL of all taxatlon
problems, for if the local assessment is I'M
just, all assessments based thereon become
also unjust.
The evil effect of such doctrine is nor
limited to taxation alone, but extends 20
other matters as well. If the Legislature
has no power to correct the evils arising Dy
noncompliance with the statutes as TO
local assessments, then such assessments
can never be better or more just than the
particular locality where they are mace
desires them to be. If this be true, then 1t
is we'll to consider whether our fundamen-
tai law should not be amended so as TO
permit some supervision by central au-
thority over local assessments.
If this statute is finally held to be IN
constitutional as an interference with sell
government, still it is safe to assume that
the people are vitality interested in just
and equitable system of taxation, and that
If 1t shall appear necessary to abandon
q
sesSment In order to secure just sys-
tenn, they would not refuse to give up SO
much Of the right of self-goVernment as TO
permit a change in matter Of such vital
interest to the welfare Of the whole people
of the state.
Income Tax.
At the last general election an amend
ment 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 pro-
gresS1ve, and that reasonable exemptions
may be provided.
Through this amendment It is proposed
failure which has attended the taxation or
personal property. Recently much has been
written and keen interest manifested with
respect to this form of taxation. The
amendment having been adopted, authoriz.
ing 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 considera-
ton.
Since the attempt to reach and tax So
called Intangible personal property, which
is often source Of large revenue to It's
owner, has proved a failure, and II we are
not to come to the condition we are fast
approaching. where the real estate and
shall bear the whole burden Of taxation,
some means must be adopted to tax that
class Of property not now reached under
the property tax laws.
generally conceded
onlsts and writer's on the subject of tax
alton that income is the most reliable test
ought to contribute towards the support Of
government. Under property tax laws.
property which brings no income to it's
owner Is taxed at the same rate, If Of the
derives a revenue. This is an injustice
however, that cannot be avoided under u.
system of taxation based on values.
Under the income system a tax is not
levied where there is no profit, bat awaits
its demands until the owner derives an In
come from his Investments
the practicability of successfully enforcing
any system Of income taxation. There is
nothing new in the idea that such a system
with reference to the ability of the person
upon whom the burden Is placed to bear the
same; that is, increasing the rate to keep
Many years ago John Stuart Mill said:
Equality Of taxation, as a maxim of poll
tics, means equality Of sacrifice
1t is very evident that a citizen with an
income of $4,000 per year is able to pay a
larger percentage on that income than one
whose earnings are only $4,000, for the neces-
are about the same for each.
1t should be noted, however, at the out
set, that while there. can be no doubt Of the
theoretical justice Of an income tax, it has
been found that when an attempt has been
made by the states Of this Union to EN-.
ploy 1t as revenue measure, It has met
with no little opposition, and it's success
has been anything but gratifying. The time
has come, however, when it would seem the
such tax, that large class of citizens who,
having very little property subject to taxa
ton under existing laws, yet earn large SAL
their families throueh gnta4ed pve xad nei
and yet contribute little to the state under
whose protection they enjoy the comforts of
In providing for such a tax reasonable
exemptions should be allowed, for 1t is
Taxation of Telephone Companies.
Chapter 4S8, laws of 1905, provides for the
taxation of telephone companies by per-
whose gross earnings for the preceding yess
are over 100000, pay an annual license fee
o. OF per cent. on such receipts, and If $780,.
IS per cent of the license fee is paid to the
town, city or village in which the exchange
is located. They also pay to the state 10
per cent. of their gross receipts from eX-
change service. These fees are paid on the
verified reports of the companies made to
the state treasurer. The total tax paid dur
628,89. OF this sum $29,7716O was paid by
one company. The state treasurer's report
SHOWS that, one company reporting 9734
miles Of wire, with 55 receivers and A
transm1tters, paid tax Of $25.72. This was
the total tax paid, as it reported no gross
earnings and has no local exchange, within
the state, and, therefore, under the act,
pays no tax to any town, city. or village.
One company, having 95 miles Of wire and
100 Instruments, paid a tax of 10 cents.
Many Of the companies are unincorporated,
and the officers of the state charged with
the collection of the tax have no knowledge
OF their existence, and a few of them escape
taxation altogether. I see no good reason
why. the ad valorem system should not be
applied to this class Of property. Some
system should be devised that will result in
the taxation Of these properties in a more
equitable manner. Any system permitting
the taxpayer to assess his own property,
as this act does, by basing taxes on re-
port Of gross earnings, should be avoided, If
possible. If the present system is continued
the statute should be amended so as to pro-
vide for taxation at a graduated rate ON