The Telegraph-courier. [volume] (Kenosha, Wis.) 1888-1946, 1923-03-29
MESSAGE TELLS
OF BLAIN'S BILL
Governor Outlines Plans
for Taxation in Mes
sage Today.
HAS MANY ANGLES
Provides Both for Big Increase
in the Taxes Raised and for
Big Cut in Expenses.


which he delivered today before a
joint session Of the two houses of the
state legislature set forth to the sol
ons the tenets of the tax bill which
he has been preparing and which he
believes furnishes a plan fer provid-
ing the funds necessary to carry on
the government and provide needed
road improvement. The measure
brought several surprises since it con-
tanned some departure from the pro-
gram outlined by the radical element
of the legislature.
In addition the governor took this
opportunity to voice his opposition to
the present search law passed to aid
in the enforcement of state prohibi-
tion laws and also to denounce the
Volstead law as oppressive.
Tax Measure First.
The text of the message is in part
as follows:
E'The tentative draft of the general
tax bill submitted herewith provides
for the creation of tax commission
consisting of single commissioner, to
be appointed for six years. We have
come to the place where administraz
ton should be lodged in the hands of
undivided responsibility, which means
more efficiency and economy.
"There are in the state forty as
SCISSORS of incomes and forty assess
ment districts, costing the state
$169, 1892 10. There will be greater eff
fciency and economy in reducing the
number of districts to ten, thereby
eliminating thirty assessors receiving
salaries approximating 100000.
Equalization of the counties,
towns, cities and villages by state of
icers is abolished Experience has
shown that such equalization when
made by state officers is no more sat
isfactory than when made by local
authority.
"The supervisory power of assess
ors of incomes is unnecessary, and is
eliminated.
Would Raise $12,0OO,OOO Annually.
THE amount contemplated to be
raised under the suggested policy in
the average normal year is $12,600,-
600 in income taxes, in years of I'M
usual depression the income tax will
probably be a million dollars less,
while in years Of greater prosperity it
will run about a million and a half
additional.
IF the additional amount received
during prosperous years exceeds such
installments, then one-half of such
excess, not exceeding 100000, shall
remain in the state treasury to pro-
tect the state treasury against defci-
encies due to less prosperous years
and the balance of such excess Of
said two installments is re-distribut-
ed to the counties on the basis, of the
assessed valuation.
Here Are Rates Suggested.
''The composite rate on the net tax
able corporate income is about 6h
per cent. The rates on incomes of
corporations are graduated from 2 per
cent on the first $1,000; 8 per, cent on
the second $1,000; per cent on the
third S1,000;l per cent on the fourth
$1,000; 6 per cent on the fifth $1,000,
OO,UUU,
based upon the net income.
The corporate rate is the aggregate
of existing income taxes on corpora
tons, modified by such graduation,
and conforms to the constitutional
policy of the progressive graduated
rate.
''The bill increases the exemption
6 IL; i
to $500. 1t does not provide for a
fiat additional exemption, but in eff
feet increases the exemption by levy
ing one-half per cent on the first $500
and 1 per cent on the second $780,
Thus, a husband and wife or head Of
a family having one child is given an
exemption of $1750, and a husband
and wife or head Of family having
two children is given an exemption
of $1,000, and of course that exemp-
ton is over and above the deductions
provided by law.
"Or the next $1,000 the rate is IL
per cent; on the third $1,000 2 per
cent; on the fourth $1,000, PIX per
cent; on the fifth $1,000, 81 per cent;
on the sixth $1,000, A per cent; on
the seventh $1,000, per cent; on the
eighth $1,000, per cent; on the ninth
$1,000, per cent; on the tenth $1,000,
8 per cent; on the eleventh $1,000,
9 per cent; and on the twelfth $1,000
and all sums thereafter, 10 per cent,
based on the net income.
"There is added to such rate, Begin
ming after the first $4,000 of income,
IL per cent on the first $1,000 and
graduated up to the twelfth $1,000,
at an increase of one-half per cent on
each $1,000 on dividends received as
income from corporations, except
banks.
These rates make composite in
come tax rate on the net taxable in
come of individuals of about two and
one-half per cent. The taxation of
state and national banks should be
treated in separate bill on account
of the federal court decisions and
federal law
"The tax is payable in three in
stallments; namely, 80 per cent at the
time of making the return, 80 13 per
cent on or before July 1, following,
and SO 2-3 per cent at the time local
taxes are paid
Suggests the Distribution.
Section 71:19 relating to the ap-
portionment of the income tax revenue
provides that 30 per cent of the tax
shall be paid into the state treasury
not exceeding in any one year $3,000,-
900 IN lieu of mill taxes for the uni
versiAG aad normal schools, $1,000, 900