The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1912-12-06
A STATE INCOME TAX.

Tho thirtv-four Of the required
-birty-six states which have rathe'
che income tax amendment TO the Fed
~~sl Constitution would probably no
ebava done so If their Legislatures be
for. action could have heard the pa
,ers read al the Governors Conference
i,..st.rdav BY Governor McGovern OF
i1yisoonsin and Ex-Governor Wilson Of
1,entnckv. The former outlined wha'
% snlendi6 revenue producer the state
income tax has already proven 'or
Wisconsin. and the latter indicted the
FEDERAL income tax as an invasion OF
ss,.te.s rights. The States are unques-
,to,a hrv selfish in the matter Of finance
and IL they had ever been apprsed OF
me tremendous value of a State income
lay to them. they would never have
surrendered so profitable field OF
revenue to the natiO
An income tax was demanded oy the
reople Of Wisconsin because the old
system OF personal property taxation
has broken down there just as It has
almost everywhere else The taxation
Of intangible personal property. IN the
.oinio1 OF Governc. McGovern, has
...onplctelv failed" and the result al
most uniformly has been inequality.
discrimination, evasion, and, as Tar as
tets source goes. Increasing deficiency
Ex-Governor Wilson advocated the
3 BOLTON Of the present general prop
,rty tax as grossly unfair and I'M
equal" ana OF the present personal
property tax as startling in its ineff-
cheney. inequality and the universal
and. INDEED. necessary concealment OF
securities from a tax which would II
literally enforced. coniscate all or
nearly ALL income Of every safe invest
.1nent'
Wisconsin has adopted a graduated
Income tax with proper exemptions. II
is a substitute for the old system Of
personal property taxation; in fact. II
has practically abolished taxation Of
that sort The basis of the tax is net
income. Broad and Just exemptions
are allowed. so that the poor are com
pietely relieved. The principle Of the
lax is 10 exclude entirely the cost Of
subsistence" The exemption of sin
gle person IS $500; OF man and wife,
5000. and $500 additional for every
child under eighteen years Of age. The
SC ~~-~l G1r1
the burden Of the taxpayer of large
income is not unjust or conhscatory.
The result Of Wisconsins income tax
law was that IN the first year Of its
operation more than s5.55o,ooo was
raised. OF that amount sl,157.2os.2s
was paid by individuals. and $2,3s4.-
c2551 BY corporations. One county in
WISCONSIN paid In $4,000. which is
more than the average annual return
from the Old Dominion has been
The personal property tax may be
abolished tae State through the
operation Of the new tax The income
TAX yield is only s55oOoO fass than tina;
OF the personal property tax. and Gov
ernor McGovern thinks that the latter
tax may soon be wiped on; CT exist
ence
WY has ne state income tax II
Wisconsin worked 20 successfully
FIRST because II Is scientific IN its
exemption and IN the graduated scale
4 rates. Second. because II has been
enforced BY TIE State Tax Commission.
IN which authority IN taxation IS cen
rfauzed That BODY = composed .
-xpert members, who arc Wei paid
and VINO are qualified for The work
They appoint the tsx assessors and
have fun authority 20 remove them O.
saif; them from post % post Loca'
influence cannot be brought 70 beat
upon to sssessor hs cannot Dc bull
Jo5ed b. petty c0unf. tyrsnts. rs can
not be in-imidated. because he IS Sc
,urs n rs position as long - -
lakes ne tax -6odgers come 20 TIM
he state LAYS its anger directly upo-
Ire citizen and says 10 hin. Pay youi
lue" s-d thee Is 10 ooanty wall 9.
saieio Ire ts1-evs1er.
u short. The syscesn thst Wisconsin
Uses = practically rat proposed Tor
permanent STATE tsx commission viii
ccntrzuzsd powers II virginia. vhici
would have beea n successful opera
t..n rov BIT for IS defeat - ~
.tr-7ae~srer Who controlled fhs Gen
,raI Assembly % 1912 r ths stat
TAX conlr.isstrn tsd been created. g
would H1rs increased ths income O.
rstsrn 70 virgnia fourfoid. - WIS
confln hss done TIE d-fe-~aos b.
faeen wlsr,rsn and Virginia is tha
Triscors.n hss rrosrsrslfc legislator
vhcse purpor, is ti- peoples wcifsr
and not piDlder for politicians.
THE LTTERsCY TEsT ron TuuI
GRANTS.