Iron County news. [volume] (Hurley, Wis.) 1913-1950, 1920-02-07
INCOME TAX MATTER DIS
CUSSED AT ROAD SCHOOL.
Income Assessor Pearce 1omkins Gives
Interesting Talk Regarding In
come Tax Law.


land
THAT improvements can be made
in the law whereby it would be more
equitable and just between taxpayers
and without any increase in rates
produce more revenue, we must adj
NIT.
Assessors of income, in addition to
their doomage power, whereby they
estimate the income of those who
make fraudulent returns or file no re-
turn at all, should be permitted to
assess fixed penalty Under the
present law the expense of collecting
doomage assessment, which may be
proven wrong blythe taxpayer, allows
some tax-dodgers to escape.
With fixed penalty delinquents
could be more easily reached. In spite
of the increased cost of living the
Wisconsin law carries no demand for
an increase in exemptions. The low
rate of one per cent on the first thou
sand of net taxable income subjects
| the wage Garner and small taxpayer
to a very low rate A married man
with a family of three, earning S3400
pays but $500. We believe that The
payment of a small tax awakens The
taxpayers interest in governmental
question and encourages him into
feeling that he is part Of the govern
ment. A great many single men,
among the wage earners, who before
the passage of the law, contributed
nothing to local or state government,
are now paying small amounts which
/ help to reduce the heavy burden of
the property owner. Uuless the rates
| of taxation are increased we see no
| reason for an increase in exemptions.
We find the small income taxpayer
In favor of the law, with but one
regret, that he does not earn enough
TO pay more.
! Effort has been made TO secure the
abolition of the personal property
offset in several sessions of the leg
islature. The lobby against its repeal
has been more influential than friends
of the measure. There are many
reasons why this feature of the law
/ should be abandoned. First of all
! you understand of course that those
who pay personal tax are entitled
to credit for the amount thereof on
their income tax.
The taxpayer who has sufficient of
/ this worlds goods to afford the Iuxu-
ry of an automobile obtains credit for
the tax there on his income tax.
w lille the unfortunate wage Garner
or small taxpayer without this lux
nry is granted no such privileges.
The owner of car worth $500 in my
| home town, can offset a net taxable
/ income closely approXimating $4,000.
! A large percentage of those engaged
in farming and mercantile business,
with large personal property assess
ments escape paying an income tax.
Is it any more fair that the mercha Mt
carrying large stock should have
/ this offset than the real estate? Is it
/ fair that the owner of an automobile
kept for pleasure, not used in earning
the income. should escape his income
tax and the owner of a small house
not be permitted to use his real estate
tax as an Offset?
If you are farm renter and the
landlord owns the live stock and ma
chinery. he pays the personal proper
ty tax and You the income tax. But
if you own both you can use the off
set. This: applies in other lines of
business
Corporations have been known to
convey their real estate to a director.
thereby making the buildings subject
to IA personal property tax, to secure
the offset. The loss through this was
about fifty per ceut in 1917, the total
tax was So .4S2 .620,--, cash collections
S6.0SL7la, offsets -, 307, ABS.
You willmeet the argument that its
abolition will mean an increase in the
tax burdens Of certain lines of bust
ness. This is not true unless that bus
ines produces an income The theory
of the income tax law is that The tax
payer shall pay according to his abii
ity.
Here is an example, Two men are
engaged in the hardware business.
each carrying a fifty thousand dollar
stock. The one makes net fifteen
thousand dollars. the other clears
nothing. Under the personal proper
ty tax each pays the same amount of
tax. With the income tax, but for
the personal property offset, the pros
porous business would pay an income
tax of S135 90 Is there any good rea-