The Telegraph-courier. [volume] (Kenosha, Wis.) 1888-1946, 1922-08-10


so easily disproven, because there are
not even a few pillars of truth to up
hold what otherwise can be shown to
be complete and utter fabrication.
Tax Commission Did Work.
''The records of Wisconsin legisla-
ton show that every move for the col
lection of taxes withheld by corpora
tons which could be collected under
the law by proper auditing methods
came from the tax commission of this
state, and that the start was made and
substantial amounts recovered before
John j. Blaine even took office as gov
ernor on Jan. 2, 1921. Mr.. Blaine has
been serving singularly quiet and I'M
eventful term as attorney general, and
it is extremely doubtful that he even
knew what the tax commission was
doing.
"It will be necessary to cite briefly
some of the recent legislative history
of Wisconsin to prove beyond the per-
adventure of doubt that Gov. Blaine
has chosen the road of tricks and de-
ception as the one which he thinks will
lead him to second term in the high
est Office within the gift of the voters
of our state
None of Blaine's Work.
"The first real move for the collec-
tion of income taxes to which, it was
believed, the state was entitled, but
which it was unable to collect because
of lack of q trained and competent
force of auditors and field agents to
check up returns came during the 1919
session of the legislature. At that
time, AT THE REQUEST OF THE
TAX COMMISSION, the finance COM
mittee of the legislature sponsored a
bill giving the commission $4,000 for
each of the years Of 1919 and 1920 with
which to do this work.
members of the tax commission at
that time declared they believed that
many thousands of dollars could be
collected by checking returns, and no
one other than members of the COM
mission appeared to sponsor the bill.
Worked in 1920.
"The 1920 report of the Wisconsin
tax commission shows that the results
of. this work, which was begun and
planned before Gov. Blaine even took
Office and without his having any
knowledge of it, netted $102,834, the
results of the examination of the re-
turns of 127 corporations.
"That the commission was fully
aware of the large possibilities in this
line of work is indicated in it's report,
which says on pages 10 and 10:
"'The cost of this field work was
$2,797 for 1919 and $3,288 for 1920.
"'The additional Soldiers Cash
Bonus and the Soldiers Educational
Surtaxes, being temporary in nature,
are not shown in the above computa-
tions. Practically all 1918 returns
showing an increase in taxable income
show an increase in both bonus taxes,
and 1919 returns showing an increase
in taxable income show additional Sol
diers' Educational Surtax. The amount
of additional bonus taxes assessed is
approximately $4,000 and represents
an absolute gain to the state. There is
a large number of corporations that
should be investigated during 1921, or
large amounts of additional income for
1917 will be lost because of the three
year limitation imposed by law.
!" 1T will be seen that this work is
highly profitable to the state, and the
commission recommends that the next
appropriation be sufficiently large to
allow the employment of at least two
field auditors. Field work of this char
acter has been conducted by the United
fa@A
resulted in the collection of large
amounts of additional federal income
and excess profits tax.
Commission Cited Possibilities.
Many corporations are asking the
commission for an auditor to assist in
clearing up matters in controversy
with the commission or to assist them
in opening new books, setting up proper
values for assets acquired before the
Incidence of the income tax law. All
of this work is highly valuable to the
state, not only in increased taxes col
lected, but in that the taxpayer feels
that he is being given a square deal.
If, because of improper accounting
methods, he is paying more tax than he
lawfully should pay, his errors are
pointed out, and he is assisted in recti
flying past errors as far as possible.
The moral effect of these personal in
vestigations is good. Willful tax dodg-
ers who have made income returns and
have boosted that 'the state never
checks up as the government Does" are
finding that the state income tax law
is alive and carries penalties. Because
it has become a matter of general
knowledge that the state contemplates
checking the books of corporations. the
commission is receiving large numbers
of amended returns showing additional
income voluntarily filed by the tax
payer after having his books audited
by some responsible accounting firm.
Stole Political Thunder.
cit will thus appear that Gov. Blaine
has stolen most of his present cam
paign thunder from wo-year-old re-
port of the Wisconsin Tax Commission.
"That the legislature realized the
Importance of this work and wanted it
continued on larger scale was demon
strated during the 1921 session. The
record of appropriations and salaries
on page 161, Section 20.09, shows that
: an appropriation of $25,0 900 was made