The Telegraph-courier. [volume] (Kenosha, Wis.) 1888-1946, 1911-07-27
State Tax Commission Makes
Many New Recommends
tionsin Report Justified
INCOME TAX TO Be REASONABLE
Simple Justice to be Followed in Car
rying out the New Laws that Just
Burden of Taxation May be Laid
Upon ALL

The state of Wisconsin S practice of
exacting license fee from home life
insurance companies much in excess of
that demanded Of foreign companies is
regarded adversely by the state tax
commission in chapter of its fifth
biennial report to the governor, made
public today. The commission hold
there is no satisfactory reason why any
state should exact more from it's home
companies.
A Wisconsin company, the North.
western Mutual, is cited as an exam
pie of the effects of the policy now
being pursued. Legislation seeking a
large reduction of the taxes of this
company was initiated in the legisla-
ture just closed, but failed. The COM
mission in its report says the company s
tax in 1911 is $405, 7o4.7S, or over 40
per cent of it's income on all it's as
sets except real estate.
"The unjustifable excessiveness of
such rate of taxation on assets of this
character seems manifest concludes
the commission.
The same company paid retaliatory
taxes in 1900 to ali amount ,aggregat-
ing over $4,000 to the states of New
York, Illinois, Connecticut and New
Jersey, while the license fees from life
companies of those states transacting
business in Wisconsin, paid to this
state for the same period amounted to
$27,607. Later legislation relieved do
nestle companies from the operation of
retaliatory laws of other states, while
producing about the same amount of
revenue.
Does Not Approve Contention.
The committee goes exhaustively in
to the theory of life insurance taxation.
1t does not approve the contention
urged on behalf Of life companies that
life insurance as a benefcent thing
should be encouraged by exemption in
stead of being burdened by a tax.
All institutions for encouragement
of thrift, " it says, for protection and
safe Investment of savings, are in some
degree benefcent, but it is not per
ceived that the institution of life in
surance is so far different from others
in this respect as to warrant it's total
exemption
The old commission, N. S. Gibson,
George Curtis, ,Jr., and Nils P. Haugen,
quotes Prof. T. S. Adams, a member of
the present commission on this sub
ject as follows:
"The proposal to build a system of
taxation on sumptuary principles
alizing waste and thriftlessness, re-
warding thrift and industry-has been
repeatedly made in the past and de-
iberately rejected It is impractical
bic for one thing, because the more it
succeeds the less revenue it yislds. -
Taxation of Incomes
Celebrating upon the theme, the
commission finds justification for tax
alton of inheritances and also taxes
upon incomes beyond a reasonable
minimum of subsistence.
"To the extent that such taxes NAV
be reasonably imposed concludes the
commission, they may be justly plac-
ed upon credits or the income there
from notwithstanding the taxation also
of the actual property represented by
credits. =
The commission finds no reason for
exempting real estate held by life com
panies from taxes. Upon the subject
Of the taxation Of other assets the
commission holds:
Simple justice seems to demand
that each taxing jurisdiction at least
each state jurisdiction, should have
such proportion of the total tax revenue
>as is borne, theoretically at least, BY
policyholders resident therein, and no
more. Few, if any, of the several
American states will relinquish the
right to tax foreign companies and
such taxes when imposed will be some
what in proportion to the assets of such
companies equitably belonging to poll
cyholders resident in the state which
makes the exaction'
The commission also concludes that
the rate must be determined largely
with reference to what the accumulated
assets Of the companies can reasonably
and justly bear.
Speaking Of the general property
ta1, with which topic the report be-
gins, the tax commission discusses the
failure of this tax to approach produce
equality, especially concerning personal
property. Bank stock and farm ami
mails, however, are assessed fully as
well as is real estate, which IS not true
of 49, o4l,ap clecc