The Telegraph-courier. [volume] (Kenosha, Wis.) 1888-1946, 1922-12-28
STATE TAX BOARD
URGES CHANGES
Urges Removal of Person
al Property Offset from
Income Tax.
FORGETS SECRECY"
Campaign Issue of Administra-
ton Is Neither Recon-
mended or Mentioned.
tBy Associated Press

ton to remove the uniformity provi-
sions with regard to taxation; increase
in income tax rates; re-apportionment
of the returns from the income tax,
and taxation of bank dividends, are
among the recommendations made by
the Wisconsin Tax Commission today
in its report to Governor ]. ]. Blaine
proposing changes in the present
state revenue laws.
The commission report contains no
mention of the secrecy clause to the
income tax law, either to recommend
its repeal, or to suggest that it be
retained. Repeal of this provision OF
the income tax law was one of the
outstanding issues developed during
the last political camaign, and is to be
requested by Governor Blaine in his
first message to the legislature.
An outline of the tax commission
concentrations, made after years of
experience in administering the state
tax laws, follows: ....
Repeal of the constitutional provi-
sion requiring the "rule of taxation
SHALL be uniform" to enable taxation
debtedness on a different basis than
taxation of incomes, and to provide
for reduced taxes on homestead i'm
provements.
Double the Income Tax.
Repeal of the personal property off
set to the income tax law, which would
result in a practical doubling of the
income taxes, or if unwilling to make
this change the commission suggests
that law be passed limiting the use
Of the Offset, that the Offset be per-
mitted only in cases where both the
personal property tax and the income
tax are payable in the same district,
and that no personal property tax off
set be allowed in payment of income
taxes assessed on unreported and un-
taxed income of previous years,
Increase in income tax rates estab-
fishing & flat tax of eight or ten per
cent of individuals and fiduciaries
over $4,000, and instead of a grad
uated rate on corporation and CO.
partnership incomes, flat rate of five
or six per cent.
Re-apportionment of the income tax
returns so that the state retains
larger share than the present 10 per
cent permitted by the statutes, and
is enabled to use the tax for some
specific purposes.
Appropriation of 100000 to the tax
commission for investigation of unre-
ported income of both individuals and
corporations.
Taxation of bank dividends, now
exempt,
Repeal of the section OF the income
tax law which permits corporations to
deduct dividends or income from
stocks, or interest in any co-partner-
ship, corporation, joint stock COM
pany or association, the income Of
which has been assessed under the
income tax law.
Establishment of system of county
assessors with competent help, all
chosen under civil service rules, to
be substituted for the system Of local
assessors now in vogue which calls
for election of these officers by popu-
lar vote.
Change In the assessment laws so
that corrections to the property as
sessment may be liberalized.
Would Pay Officials More,
Increase in the incomes of assessors
Of incomes,
Appropriation Of small sum of
money for compilation of statistical
data and educational work.
"The proposed recommendations
listed above, if adopted" the board
report says, will be simple and mex
pensive, because the changes proposed
would reduce administrative detailsj
effective, because they would, it is es-
timated, approximately treble the
revenue that would otherwise be de-
rived from income taxation; and just
because they would place the increased
resulting tax burden ratably upon
those who have superiority of income
and reduce the property taxes of those
Of small holdings and incomes by
whom the payment Of any tax often
deprives their families of some of the
essential necessities of life"
Speaking Of the demand being made
In many quarters that general prop
erty taxes be reduced and increased
income taxes substituted, the commits
sion says that increase in income
taxation will not materially aid the
rural districts, unless there is diff
ferent distribution Of the tax than
that now prevailing" It suggests that
instead of the state retaining. 10 per
cent Of the tax, it keep as much as
$50 per cent, turning the rest over
to the counties.
practical experience demonstrates"
the commission says, "that it is rare
that corporation income tax, though
legally assessed, is paid in FULL and
yet, if assessed, whether paid or not
one statute exempts it's dividends
from taxation, the result being that
the corporation is freed from the tax
by the personal property Offset and
the stakeholder also by reason Of the
dividend exemption. For twelve years
corporations and stockholders have en-
poyed very large degree of i'm
munity from taxation by reason of
these laws and should no longer be
favored in this respect"
The commission recommendations
were submitted to Governor Blaine in
tentative form before he commenced
n draft his uassapa tn the 1eCis1a-