Eagle River review. [volume] (Eagle River, Wis.) 1890-1927, 1925-03-05
Repeal of Offest is Not
An Equitable Tax Relief
WISCONSIN NEEDS ECONOMY,
NOT NEW TAXES SAYS
FARM EDITOR

sin should not permit themselves to
be deceived by the present agitation
in tie legislature for far-reaching
changes in the tax laws Of the statc
brought forward under the pretense
Of reducing The burden Of taxation
Eut ahich, in my judgment are Meth
er necessary, nor likely to be of bee )
fit to the l;hlic as a whole.
10 not laLave it will be possib !
for the advoca*es of the new tax
measures to explain how they hope
to help the taxpayers of Wisconsin
by increasing the amounts to be col
lected from them, directly or indirect
ly Neither is there justification, eth
er in the financial condition of the
state or economic conditions in gen
eral, for the sweeping increases in
income tax collections which are pro-
posed
The basis OF the demand for revis-
ion of the state income tax law seems
to be an appeal to prejudice through
ufacturers of the state will bear the
entire burden. of the additional inn
posts. The argument is heard that the
ordinary citizens will pay no more
than they have in the past, and that
industry will pay the new bills.
But there is little doubt that in
dustry already is bearing its due
share of the burdens of government
in this state Any new taxes upon any
element of the taxpayers in Wiscon-
sin today will only serve to swell
the entire load which the community
must carry, and will be felt by the
humblest laborer and farmer just as
surely as though they were paid
from his own pocket.
1t is proposed, under the new in.
come tax bill, to raise an additional
revenue of from $3,OOO,OOO to $4,000
900 year the increase, in general
to be turned into the state treasury
The argument is made that such an
increase will prevent the necessity of
levying the one-mill general tax for
the university and state normal
schools, and the three mill tax for
state general purposes.
But, as matter of fact, the prac-
tice of economy will render it I'M
necessary to levy either of these
taxes without resource to an increase
in taxation. These levies we're not
made last year, and the existing bal
ance in the state treasury, amounting
to $14,042,146, is evidence that they
are not imperatively needed in the
immediate future. | am also of the
opinion that the exercise of real econ.
omy in state affairs will result in a
sufficient saving so that neither adj
ditional taxes nor the levy of the
maximum amounts permitted will be
necessary. The fact that state expen-
ditures have grown from a gross total
of $14,469, 2O6 in 1914 to total of
$40, 623,722 for 1924 is plain indica-
ton that the great need Of Wisconsin
is not new taxes but old fashioned
economy
1t is hardly necessary to discuss in
detail the proposed new tax bill which
appears to be drafted with the simple
idea of getting new and unneeded
funds for public expenditure. It re-
peals the existing offset permitted in
come tax payers who are also tax
payers upon personal property, and
creates flat per cent tax upon all
earnings of corporations or business
es over $1,000 per annum.
The farmers of the state will re-
ceive little or no benefit from the
distribution of the income tax under
the new proposal. The bill, as pre-
scented provides that AZ per cent Of
the proceeds shall be turned into the
state treasury, As per cent prorated
back to the cities, and 10 per cent
distributed among the county govern
ments. Inasmuch as there is no neces
sity for this tax in order to keep
down direct state property levy, it
is hard to see why the farmers of
wisconsin should give their support
to this bill.
| wish to make clear in this connec
ton the obvious truth that the real
measure of high taxation is not the
manner in which the tax is collected,
but the gross amount to be raised.
Every citizen of Wisconsin pays, eth
err directly or indirectly, goodly
share of the states tax bill He may
escape the income tax payment him
self, but he helps make somebody
eIse's The tenant may pay no direct
tax, but his landlord charges him
enough in rental to cover his assess
ments If the merchant must pay an
increased income tax, his patrons
will have to pay him enough to cover
the new expense of doing business.
Taxes will remain high in Wiscon-
sin as long as the cost of government
is high. The, only way to relieve the
tax burden, be it for state, municipal
county or school purposes, is to spend
less money. 1t will not help very ma.
terially to attempt to shift the burden
ahout load weighs tha same whnth