Wood County reporter. [volume] (Grand Rapids [i.e. Wisconsin Rapids], Wis.) 1857-1923, 1912-01-25
INCOME TAX LAW
DECLARED VALID
State Supreme Court UphOIds
4 ConstitutionaIity of Act.
INCOMES OF 1911 AFFECTED
Opinion Delivered b. Chief Justice
Winsow Calls 1t a New System
of Taxaton-6rands Old Method
of Making Levy a Failure.

Madison.-The income tax law
was sustained in an opinion by Chief
Justice Winslow of the state supreme
court in the case of the state ex. rel
Bolens, versus Frear and others
After sustaining the Jurisdiction OF
/ the supreme court, the general OBJ
Ject Of the law is reviewed, the court
saying that the statute as passed by
the legislature is not a new and un-
tried experiment in the history of
taxation; that it is merely a change
from the old system of uniform taxa
ton Of property, which, in the
opinion of the court, has proven a
failure so far as personal property is
concerned. The new system, embod-
led in the income tax law, is set
forth as a combination of two ideas,
namely: Taxation of personal prop
erty, progressively according to the
ability to pay, and taxation OF real
property uniformly, according to
value
The section providing for the taxa
ton of the incomes of nonresidents,
derived from a source within the
state, and for the taxation OF a 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 a 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 $500
is allowed.
The rates of income taxation after
making exemptions are as follows:
First $1,000 or part thereof, l per
cent; second $1,000 or part, IL
per cent; third $1,000 or part, p
per cent; fourth $1,000 or part, IL
per cent; fifth $1,000 or part, 2 per
cent; sixth $1,000 or part, ~ per
cent; seventh $1,000 or part, g per
cent; eighth $1,000 or part, 3 p per
cent; ninth $1,000 or part, per
cent; tenth $1,000 or part, AZ per
cent; eleventh $1,000 or part, 5 per
cent; twelfth $1,000 or part, 5 p per
cent; over $4,000 6 pei. 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
cials; dividends or profits derived
from stock; royalties from franchises
or legalized privileges of any kind :;
and all other income not exempted
Pensions and postmaster's 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 taxpay-
ers shall keep a correct record of
their years income. Stringent regu-
lattons to guard income secrets are
provided for assessors, and convic-
ton renders an offender liable to
heavy fine or Imprisonment.