Wausau pilot. [volume] (Wausau, Wis.) 1896-1940, 1912-01-30
OUR NEW INCOME TAX.
Only Those Of AffIuence viii be Affect
ed.-Plain and Clear Explanation /.
Of the New Law

The income tax law passed by the
last legislature provides that for the
year 1911, and annually thereafter, an
income tax shall be assessed and levied
against the incomes of persons, firms,
corporations and associations. The
law, however, provides that person
may deduct from his gross income
the necessary expenses of conducting
his business, profession or occupation,
and then from his net income thus
ascertained, he is further allowed GER
tain exemptions. A single person is
allowed exemption of $500, man and
wife $1,000 and also $500 additional
for each child under Is wears of age.
After the deductions and exemp-
tions have been made from the gross
income, the remaining portion of tie
persons income will be subject TO an
income tax, which will be at the rate
of one per cent. on the first 81, 900 or
part thereof, and increasing with each
additional $1,000 until rate of six
per cent. is reached, when the rate
becomes stationary.
In order to illustrate, we will as
sumo that man has wife and one
child under Is years of age. We will
assume also that he has a gross in
come of $500, and that the necessary
expenses of running his business dur
ing the year were 5000. Deducting
his expenses from his gross income
will leave a net income of 81, 900.
From this sum take 81, 200, the ex-
emption for himself and wife and
also $500 additional for his child, and
there is left the sum of $500, which
will be subject to an income tax at
the rate of one per cent, making his
income tax S..
The law provides, however, that if
a person pays a personal property tax
he can take his receipt, which he re-
ceived upon payment of his personal
property tax, and have it accepted
by the tax collector to its full amount
in the payment of taxes due upon the
income of such person during the
said year. Therefore in the case
mentioned, if man has a personal
property tax of 81, he can have his
receipt for his tax accepted in pay
ment of his income tax to the amount
of ST, leaving practically only one
dollar of income tax to be paid.
1t seems plain from the foregoing
that the income tax will touch the
great majority of the people but
slightly, If at all. 1t is only those of
large incomes that will be affected
much by this law. In the case of
firms, partnerships, corporations and
associations, there are no exemptions.
Every person who is subject to pay
an income tax should make a return
of his income to the assessor of in
comes, and the said assessor shall re-
quire every person whom he thinks
may be subject to pay such tax, to
make report of his income. The
law prescribes severe penalties for
making fraudulent or false returns
and for neglecting or refusing to
make return. The tax is to be
assessed and collected in the district
from which the income is derived,
and will be placed in the tax roll
and collected at the same time and
place as other taxes and by the same
collector. Seventy per cent. of the
tax will go to the town, village or city
where assessed, twenty per cent. to
the county and ten per cent. to the
state.
The law has created much discus
sion and some criticism, yet it is a
measure that has been passed only
after much deliberation. In the first
place our state constitution was
amended so tnat such law could be
enacted. This amendment was first
passed by the legislature in 1905. In
1907 the legislature of that year also
passed the same amendment and in
the fall of 1908 it was submitted to
vote of the people and was carried by
a majority of nearly three-fourths of
the votes cast on that question and
became a part of our state constitu
tion. The next legislature, that of
1909, appointed a committee to con-
slider the matter of an income tax
law. This committee held hearings
in different parts of the state on said
subject after the legislature had adj
journed, and afterward formulated
bill providing for an income tax,
which was reported to the last legis-
lature when that met, and which
legislature after much consideration
and discussion finally enacted our
present income tax law.
1t will tnus be seen that the princi-
Pile of an income tax has been endorsed
successfully by each one of the last
four of our legislatures and was also
in 1908 endorfed by a direct vote of
the people. Stevens Point GazetGe.
DANDRUFF GOES.