The Telegraph-courier. [volume] (Kenosha, Wis.) 1888-1946, 1913-01-16
SUBMIT REPORT NEXT WEEK
Family to Be Considered as Until I'm
der the Amended Income Tax Law
and Tax on Corporations to Be Var
led on Rate Double Individual Tax.

The state tax commission in its BIZ
ennial report next week will recon-
mend some minor changes in the IN
come tax law. The most important OF
these proposed changes have to DO
With corporations.
The legislature will be asked to
graduate the corporate income rate on
basis double the rate upon individual
incomes, until a maximum Of per
cent is reached.
Another change to be recommended
is that corporations be not held re-
sponsible for the bondholders' tax
The provision of the law as it now
stands holds the corporation liable for
tie tax upon the income from the
bonds Of the corporation. The trainers
OF the law in Incorporating that provi-
sion contemplated the danger Of many
corporations being bonded heavily for
the express purpose of evading the in
come tax demand. That danger seems
now so remote that the commission
do not think it necessary or just to
continue the protection.
Another change proposed is to have
the family considered as unit in esti-
mating its income. A man, the head
of family, may have no income, but
his wife may have an ample one The
change would make the wife's income
the husband S for purposes of taxation.
1t is indicative Of the high regard
in which the present income tax law
is held that the governor Of Massa-
chusetts recently recommended to the
legislature of his state the enactment
OF an income tax law framed upon the
lines of the Wisconsin measure.
1t is not anticipated either by the
tax commission or by others specially
interested in the income tax law that
there will in the future be any serious
organized effors to secure the repeal
Of the law. A somewhat cursory ex-
animation of the objections made to
the law seems to indicate that the OPP
position to the measure law against the
more or less inquistorial methods Of
its administration or enforcement
rather than against the principle under
lying the law. In other words if the
commission had undertaken to ascer-
tain the taxable incomes of individuals
and corporations with fewer questions;
if it had trusted more to the honor of
the taxpayer and depended less upon
its own skill in deducing from the
answers to its questions the informa-
tion desired, and thus shifted the bur-
den Of stating the taxable amount up
on the taxpayer instead of really as
scming that burden itself, there would
have been less complaint.
lC is interesting to note that the
law does not require individuals to
swear to their schedules, while it does
require corporation schedules to be
sworn to-. The commission, however,
in its schedules made the oath obi
gatory upon both.
1t is reasonable to believe with the
members of the tax commission that
as people study the income tax law
they will come to recognize its superb
GRITTY to the existing personal tax law
Tor securing an equitable distribution
of the burden of taxation. That one 8
net income is the best standard by
which to measure his obligation as
well as his ability to help meet the
expenses of government, would seem to
be self-evident.
N. 2. Haugen, president of the tax
commission, is of the opinion that the
enactment of federal income tax
law will not deter any state from pass
ing such a law, nor interfere with the
operation of the law in any state
which already has one. The expenses
Of both federal and state governments
must be met by direct or indirect taxa
ton, or by both, and it will soon come
to be understood that changing the
form of the burden will of itself Meth
err lessen nor increase it.