The Telegraph-courier. [volume] (Kenosha, Wis.) 1888-1946, 1911-12-28
State Income Tax in Effect
New Years Day to Have
Very Wide Scope.
SCHEDULES ARE EXPLAINED
Incomes of Many People in Only Mod
crate Circumstances VIII Be Taxed
if Wisconsin Income Tax Law is Held
Constitutional by Courts

A subject of much Importance to the
public in general and one that is at
tracing more than ordinary interest
locally is the new income tax law
which has recently become effective.
It is one Of the most important pieces
of legislation ever enacted in this
state. Whether or not it will event
ually have tendency to reduce the
other taxes now being collected in
various ways in this state is yet to be
determined. There are many who be-
ieve it will, while there are others
Of the opinion the law will be repeal
ed or amended.
The income tax collector, whoever
he may be, will soon be an important
parsonage in Kenosha county, his pow
er being unlimited. How much
revenue he will be able to turn into
the city, county and state treasury is
not closely estimated, but it is said
| to be thousands of dollars.
Of the total amount, the city, town
or village will get by far the largest
portion, 20 per cent, of the sum paid
in such city, town or village. Twenty
per cent goes to the county and the
remaining ten per cent goes to the
state.
Corporations Included.
The law states there shall be as
sessed, levied and collected a tax up
on incomes received during the year
ending December 81, 1911. The rate
of tax applies to corporations as well
as to individuals.
The term "income applies to all
rent Of real estate, including the es-
timated rental Of farms and residence
property occupied by the owner there
of; all interest derived from money
l
bonds or other evidence of debt of any
kind whatsoever; all wages, salaries or
| fees derived from services, provided
that compensation to public officers
shall not be computed as part OF the
| taxable income in such cases where
the taxation thereof would be repug-
nant to the constitution. The tax
also includes dividends or profits from
stock or from the purchase and sale
of any property or other values ac-
quired within three years previous OF
from any business whatsoever. This is
taken to mean for instance, that real
estate agent buying property for
81 500 and selling it three years later
for $4,000, will be compelled to pay
rate of income for the profit made
during the intervening years.
Law Liberal in Respects.
Royalties are subject also to a
share of the tax.
Every corporation, joint stock com
pany or association is allowed to make
from its gross income some deductions.
Depreciation in stock and equipment is
taken into consideration. The law is
liberal in some respects. Persons,
other than corporations, etc., are also
allowed reductions.
| Corporations are compelled to open
up their books for the most rigid ex-
animation, show their payrolls to indi-
cate Just how much salary each EN-
ploye is earning and give comprc-
hensive report of the affairs in general.
Farmers Must Pay.
| The farmer is included. He is
charged up with the valuation Of his
land as part of his income. He must
show the value OF all products raised
and sold, and also the valuation there
of, consumed by the family.
| A man owning a house and lot and
having it clustered with mort
gage, is allowed to deduct the amount
thereof before figuring his basis of
/ income.
A man earning 5000 a year is com
PEELED to make a report to the tax
collector, even though he is not SUBJ
| ject to the tax.
! There are two cases to be tested
out before the state supreme court,
a decision being awaited for on
January 9.
There is a board of review consisting
Of three members, who shall l'not''
receive more than $40 day for their
services. If any taxpayer is not salts
fed with the assessment he has the
right to appeal TO the state commits
sion.
Salaries received from the United
States by officials thereof; pensions
and taxes paid by such persons during
the year other than inheritance taxes
upon the property or business from
which the income hereby taxed is de-
rived are exempt.
The unskilled laborer is the only
person fully exempt. The incomes ex-
empt under the law are: To an indi-
yidual income up to and including
$500 year; to husband and wife,
$1,000; for each child under the ace
of Is, 5000; for each additional per-.
/ son, for whose support the taxpayer