Wauwatosa news. [volume] (Wauwatosa, Wis.) 1900-1948, 1912-01-12
TAX LAW
DECLARED VALID
State Supreme Court UphOIds
COnstitutionaIity of Act.
INCOMES OF 1911 AFFECTED
Opinion Delivered By Chief Jnstio.
Winslow Calls It a New systa,o
OF iaxation-6rands Old Method
OF Making Levy a Failure.

Madison.-The income tay L.
was sustained in an opiniop ~, Gu.
Justice Winslow of the state snnro-na
court in the case of the state ax raj
Bolens, versus Frear and otboro
After sustaining the Jurisdiction ~
the supreme court, the general Oh
Ject OF tho law is reviewed. the CON-
saying that the statute as passed INV
the legislature is not new and mn
tried experiment in the history of
taxation; that it is merely a cbane,o
from the old system of uniform tovo
ton OF property, which. in tbo
opinion OF the court, has proven n
failure SO far as personal property is
concerned. The new system, embed
led in the income tax law. is car
forth as a combination of two jdass
namely: Taxation of personal nron-
erty, progressively according to the
ABILITY to pay, and taxation of real
property uniformly, according 70
value
The section providing for the taxa
ton of the incomes of nonresidents
derived from source within the
state, and for the taxation of GER
tain proportion of the income arising
from interstate business, are not
passed upon, and a number OF other
questions are left for future consid-
Grafton.
AS whole, the court regards the
law as constitutional, and SAYS that
should any provisions be unable to
stand test, they could not be vital
and would drop out, leaving the law
stand in it's fundamental and essen
tial features.
Incomes for the year 1911 are tax
able, and the assessors of incomes
will begin work soon. Enforcement
of the law is entirely in the hands of
the state tax commission. The ex-
emptions include individual incomes
up to $500. A husband and wife are
allowed $1,000, and for each child
under Is years of age and for each
legal dependent an additional 5000
is allowed
The rates of income taxation after
making exemptions are as follows
First $1,000 or part thereof, 1 per
cent; second $1,000 or part, IL
per cent; third $1,000 or part, liz
per cent; fourth $1,000 or part, IA
per cent; fift1 $1,000 or part, per
cent; sixth $1,000 or part, ~ per
cent; seventh $1,000 or part, per
cent; eighth $1,000 or part, u per
cent; ninth $1,000 or part, per
cent; tenth $1,000 or part, 4 y per
cent; eleventh $1,000 or part, per
cent; twelfth 1000 or part, 5 x per
cent; over $4,000 6 per cent.
Income" in the new law includes
the following:
All rent of real estate, including
the estimated rental of residence
property occupied by the owner; in
terest from money loaned or invest
ed; wages, salaries or fees derived
from services, except of public Off
Gals; dividends or profits derived
from stock; royalties from franchises
or legalized privileges of any kind;
and all other income not exempted.
Pensions and postmasters salaries
are not taxable. Incomes of corpora
lions are assessed by the state tax
commission; of individuals by the
county assessors of incomes, Of whom
thirty-nine-will be appointed.
The law contemplates that taEpay-
ers shall keep a correct record OF
their years income Stringent regu-
lations to guard income secrets are
provided for assessors, and eonFlc-
ton renders an offender liable TO
heavy fine or imprisonment