The Telegraph-courier. [volume] (Kenosha, Wis.) 1888-1946, 1925-03-19
CLAIM VICTORY
FOR TAX BILL
Socialist Vote Will Carry
Blaine Tax Bill Accord
ing to Friends.
TEST ON WEDNESDAY

support for the Blaine income tax bill
by yielding to demands of the social
list bloc for raise in the exemptions
of individuals, were maintaining their
lines today as q decisive vote on the
bill in the state senate approached.
The Blaine men claim l8 votes or
majority of three for the bill as amend
ed. According TO this reckoning, the
opposition can muster but 10 votes II
all senators are present Wednesday
when the vote will be taken.
The tentative lineup as indicated by
preliminary roll calls was as follows:
For the bill, Barber, Baker, Carroll,
eastman, Chase, Englund, Carey, Heck,
Hunt, Johnson, Kemp, Keppel, Padway,
Polakowski, Quick, Sauthof, Stauden-
mayer, Teasdale-1S.
Against the bill, Bilgrien, Boldt,
Casperson, Daggetts Gettleman, Hull,
LANCE, Michigan, Morris, Sehumann,
Severson, Smith, Titus White-15.
Opposition senator's claim the week
end had a bad effect on the admins
trative progressives who went home
and discussed the tax bill with their
constituents. Senator Schuman openly
predicted the administration lines will
be broken in several places and he has
hopes for the defeat of the bill. 1t was
also said in legislative corridors there
is well defined plan of attack on the
bill mapped out by Senator's w. L.
Smith, Niellsville, o. II. Morris, Mil
waukee, and William A. Titus, Fond
du Lac. Senator H. J. Severson, lola,
known to be an opponent of the tax
bill, remains silent on the proposition,
but his friends say he will join the
attacking forces when the time comes
for action.
First test Wednesday on the admin
istration tax bill will be on the ques-
tion of the adoption of amendment NO,
7. This amendment provides for re-
duetion from the gross income both as
to individuals and corporations, of six
per cent of the assessed value OF
property used in acquisition of income.
Using this as lure in lieu Of the
personal property Offset eliminated by
the original bill, the administration
forces hope to avoid much Of the ami
mus aroused by the proposal to do
away with the Offset.
On the other hand, opposition senaa-
tors declare the Offering Of a six per
cent reduction in lieu of the Offset is
a ridiculous proposal and will amount
to much in the way of a reduction In
the Anal analysis,
The socialist proposals to raise the
personal exemptions materially are in
So A1aanY
ready adopted by the senate. The
raises are $1,000 in place of $1,000 for
heads Of families and $500 in place OF
5000 for dependents. The amendment
was proposed by Senator William
Quick to the progressive caucus held
the night before Senator w. L. Smith
staged his now famous filihuster, and
is a concession by the administration
to gain the socialist bloc OF three
votes for the measure.
The only other amendment before the
senate is a substitute offered by Sen
ator o. H, Morris at the close of the
Smith filibuster speech. Taken togeth-
err. the speech and offer of substitute
paved the way for forced delay of
consideration of the bill at the time.
The Morris substitute provides for
Is per cent reduction from gross in
come, in lieu Of the six per cent pro-
posal of the administration. Neither
proposal is looked upon with favor by
the socialists who are basically OPP
posed to an Offset of any kind in an
income tax law.
Another proposal of the Morris sub
stitute is a change in the manner of
distribution of income tax revenue.
Where the administration original bill
calls for distribution of As per cent
to the state, like proposition to the
community where collected and 10 per
cent to counties, the Morris substitute
would give Is per cent to the state,
20 per cent to the county and 90 per
cent to the community.
The original administration bill in
tended as substitute to the present
law, provides:
Changes the method of distribution.
Elimination of the personal prop
erty offset.
Rates of income tax on individual
income same as in present law.
RaLGb VI taN va NSAPStNNASAAN
and business enterprises changed from
a graduated scale to fiat rate Of
four per cent
Exemptions of individuals and cor
porations same as in present bill.
Included a tax on dividends of cor
porations not now in present law.
The Observation-Disclosures amend
ment to the original bill raises the per-
sonaI exemptions as above explained.
The administration amendment No. z
provides a six per cent reduction in
lieu of Offset and changes the fiat rate
on corporations back to the original
graduated scale Of the present law,
provides for no tax on dividends and
names a different manner of distriou-
ton.
Thus it will be seen that the only
change now proposed in the present
law by the administration is elimina-
ton of the personal property Offset
raise in exemptions Of individuals,
change in the method Of distribution
Of revenue obtained and bait in the
way Of six per cent reduction.
The distribution under the law now
in operation gives 10 per cent to the
community, 10 per cent to the state
and 20 per cent to the county.