Eagle River review. [volume] (Eagle River, Wis.) 1890-1927, 1925-03-12

and without prejudice. The public is
suffering from living beyond its
means, and the consequences are
just as painful as those suffered by
| the individual from the same cause.
Neither can cure of the malady
be found by directing attention to
state expenditures alone. State Elk
penditures have risen, but not nearly
to the same degree as local govern
ing costs. For the year ending June
80, 1923, anly 1912 per cent of all the
taxes levied were, raised for all state
purposes, and after state aids that
were returned to the counties, cities,
and schools are deducted, only net
amount of $1,451 1866 went into the
state treasury from direct taxation
on property, real and personal. The
balance of state revenue came from
it's share of the income tax, the in
heritance tax, the insurance tax, the
tax upon public service companies,
and similar sources of revenue. AS
the tax commission states:
Nearly 80 per cent of all taxes
levied in the state in the year in
question was raised and expended
for county, school and local purposes
Clearly, if the tax burden is to be- re-
duced, local communities must face
the responsibility and exercise great
err economy. :. The state and
all of it's political subdivisions must
cooperate if relief from high taxes is
to be secured
| venture the prediction that until
these facts, disagreeable as they
may be, are faced by the citizens of
Wisconsin that the tax burden will
grow more and more intOlerable. The
pending changes in the income tax
law will accord little more revenue
but the increase will be speedily
eaten up by the new ventures in gov
eminent. The public cannot continue
indefinitely to expend the vast
amounts it is now expanding unless
there is a great increase in the in
come of the entire community, con-
tingency to be hoped for, but hardly
to be relied upon as basis for con
tination of public expenditures on the
present scale.
It is possible that there are Unequal
tiles in present assessments, but all
these inequalities do not remove the
fact that every taxpayer, and every
citizen directly or indirectly pays
taxes, is paying more than he can af-
ford to pay, and more than he should
pay. Any increases at the present
time on any considerable element of
the community will react to the dis.
advantage of all.
It may be said, and is said, that it
is impossible to reduce public expen-
ditures In answer to this | have
only to cite the fact that individuals
in Wisconsin, be they farmers, bank
ers, merchants or laborers, have
found that necessity in this respect
is truly the mother of invention.
Most of my readers know full well
that they are expanding far less than
they did during the flush days of
1919 and 1920 They have not cut
their personal budget because they
liked to, but because they we're COM
PEELED to. There is a limit to public
expenditures as well as to private
ones, and that limit is fixed by the
amount of revenue which can be
raised without destroying the source
of revenue. The individual who lives
beyond his income first exhausts ev-
cry possible means at his disposal of
raising revenue, and then goes into
debt as far as possible. When he has
reached the limit in both directions
he finally comes to the resort of cut
ting down his expenditures, either by
reason of the sheriffs foreclosure
and the bankruptcy court, or because
of common sense.
Public governing units follow ex-
actly the same course, and this is
evident in Wisconsin today. New
bond issues new anticipations, are
steadily increasing the debt of the
counties and municipalities. The
state has so far evaded debt, but it
is straining desperately to find new
sources of revenue. Sooner or later
the same laws which cause individu-
ais to curtail their expenditures will
operate in the case of the state and
it's political subdivisions. 1t is the
part of wisdom to reform voluntarily
rather than to be forced by utter pub
lie poverty and bankruptcy to turn
over a new leaf.
Wisconsin is tremendously veal
thy state, and it is not faced with
the necessity of crippling it's schools,
it's roads, or its public enterprises. A
check in public expenditures does not
mean an abandonment of progress
but a period of rest and inventory
will be of service to all, and will give
to the taxpayers chance to breathe.