The Telegraph-courier. [volume] (Kenosha, Wis.) 1888-1946, 1924-08-21
REPORT SHOWS
TAX SITUATION
Industry Hampered in Wis
consin by Tax System
Report Shows
FORCE INDUSTRIES OUT
Many Industries Forced to-
Form Holding Companies
Outside the State.

Madison, Wis.-The tax situation in
wisconsin is no longer matter or
guess work and conjecture--an excuse
for rash and unsupported statements
Cold hard facts for the first time are
now available to show where the TAX
burden really rests.
At the request of the Wisconsin
Manufacturers association, the expert
investigators Of the National Indus
trial Conference board labored for five
months in the unbiased, accurate and
impersonal manner characteristic OF
all Investigations the board under
takes. It's published findings are now
presented in the simplest yet most
comprehensive tax study ever pre-
pared in any state.
The report covers the eleven year
period beginning with 1913 and ending
with 1923. In brief summary this in
teresting and understandable digest OF
what we have always considered a
complex subject says.
Compared With Other States.
"Wisconsin corporations on the aver
age paid in income taxes the equiva-
lent of mills per dollar of capital
stock, an amount about twice as high
as in Michigan Inclusive Of surplus)s
four times as high as in Ohio and
twelve times as high as in Illinois.
In the field of special corporation
taxation, therefore, as well as in the
field of general property taxation, the
policy and practice Of Wisconsin tends,
to make more attractive the removal
of large and prosperous concerns TO
adjoining states and to prevent large
and prosperous enterprises tom locat-
ing in this state-a situation fraugne
with significant and far-reaching
potentialities.
Forced Industries to Go Thither.
"This situation has had the effect
of bringing into being certain devices
whereby Wisconsin is very slowly be-
coming state of branch factories.
There are already cases on record
where large companies, originally do
niciled in Wisconsin, have sold their
assets to a foreign corporation and
transferred their main Offices and
sales force to localities producing
corporation which owns and operates
the plants located in Wisconsin and
which sells its product at cost or at
a small profit to the holding company
outside Wisconsin. This corporation
pays little or no tax since it shows
little or no profit"
Corporations do not suffer alones
however, for the report shows that the
ratio of state and local taxes in Wis
consin is 615 per cent. Illinois is
lowest of our neighbor states with
1853 per cent, Ohio next with 1888
per cent, Michigan 4.35 per cent, In
diana 4.61 per cent and Iowa 4.72 per
cent, while Minnesota's burden of 7.2
per cent exceeds our own.
The burden of taxation in Wisconsin
as measured in relation t. income, is
thus seen to be two-thirds larger than
that for Illinois, almost three-ffths
larger than Ohio, two-ffth larger than
Michigan, one-ffth larger than in
Indiana and three-tenths larger than
in Iowa.
S3031 Per Head Raised.
The amount raised per year per head
of population in Wisconsin is $30.31.
This is "A per cent higher than in
Michigan, 81 per cent higher than Illi-
nois, ia per cent higher than Indi-
ana, 11.6 per cent higher than Ohio,
but 1.3 per cent lower than in Iowa and
1873 per cent lower than Minnesota.
The average amount raised per
family in Wisconsin was $134.76, ex-
ceeding the return in Indiana by 24.1
per cent, in Ohio by 21.5 per cent, Illi-
nois by lat per cent, Michigan by 81
per cent and Iowa by 6.3 per cent.
For persons gainfully employed, 49,
teen years of age or over, the average
amount of taxes in Wisconsin ($8l43)
is 1873 per cent higher than Ohio, III
per cent more than Illinois, 12.2 per
cent higher than Indiana and lib per
cent higher than Michigan. Minnesota
and Iowa, however, exceed Wiscon-
sin by I4.3 per cent and 6.5 per cent
respectively.
Relative to the respective burden
borne by country and city dwellers, the
report states: "The income tax as it
operates today, is essentially an urban
tax" and in support quotes the state
tax commission, which says 'In short,
smaller proportion of the people
pay, and they pay average lower rates
on average lower incomes, In the
country than in the city,
The report, 1853 pages long, deals
with every phase of the Wisconsin tax
situation. It's comparative figures
make it plain that Wisconsin's indus
trial prosperity and the general well
fare Of wage carncrs have been
achieved largely in spite of burden-
some tax policy which, it added to,
cannot help but react againsC the in-