The Telegraph-courier. [volume] (Kenosha, Wis.) 1888-1946, 1925-03-05
BLAINE SILENT
ON TAX BILL
Blaine Not to Defend Ad-
ministratiOn Tax Bill
Says Report.
TALKING BY JOHNSON

Blaine does not contemplate replying
Immediately at least, to the criticism
that has been directed against the
so-called administration tax bill, 1t
was indicated at the executive office
here.
The question has come from sever
al sources during the past few days.
1t was directed mostly at the proposed
repeal of The personal property Off
set fixing of a fiat rate of four per
cent on the income of corporations in
stead of a graduated scale and in
crease in the states share Of income
taxes from tan per cent to forty-five
per cent.
While the governors personal views
on the bill and with respect to the
criticism against it were not made
known, the opinion coming from one
source to the executive was that 1t
was designed to meet as far as pos
sible the demands of all interests
without discrimination against any
certain class. 1t was not expected,
this person said, that in view OF the
discussion which the taxation prob
lem evoked during each session of the
legislature, the bill would be wholly
acceptable to everybody.
Johnson Defends Bill.
The attitude of some Of the admin
istration leaders toward the tax meas
ure became known when Senator ..
H. Johnson, chairman of the commit
tee on corporations and taxation IN
the upper house, made a detailed
statement before the joint committee
on finance during consideration OF the
bill yesterday.
"There is nothing radical about
this BILL" Senator Johnson, an ad-
ministrative supporter, told the com
mittee. except for administrative
changes desired by the tax commits
sion-to which no objection has been
offered by anyone-this bill is copy
of the so-called Heck substitute (sup-
stitute amendment No. ID to Bill NO.
250) Of the session Of 1923, except
that this 1923 bill provided for rates
on individuals up to ten per cent
while this bill carries no higher rate
than 6 per cent. This Heck substl-
tute was adopted in lieu of the or
iginal bill $50 A by a vote of II to 10
and failed of passage only by one
vote of 16 to IL when one senator
shifted. Of the present members OF
the senate, no less than IA voted for
this bill when it was up In 1879
namely Senator's Barber, eastman
Casperson, Severson, Carey, Johnson
Kemp. Polakowski, Quick, Ridgway,
schuman, Staudenmayer and Teasdaie /;
while Senator Titus first voted for II
and then changed his vote.
Had Expert at Work.
"Nor is there anything mysterious
about the origin on this bill, as SOME
onnonents have stated in newspaper
interviews. The governor deemed II
advisable to employ some recognized
and disinterested tax expert to FUR
nish an impartial report upon what
changes ought to be made In our IN
come tax law. After consultation with
the economics department OF the uni
yersity, Prof. Harley Lutz OF Leland
Stanford university was selected 1or
this work and it was arranged TO
have him spend the four months from
Sentember to December inclusive In
Madison giving two courses IN tne
university and devoting the rest OF
his time to this study for the govern
or. as an employe of the legislative
reference library. Prof. Lutz is rec
opnized as one of the leading tax eA-
perts of the country, is author OF
several. books on this problem, was
for years, the editor. of the Bulletin
of the national tax association and
has been employed AS expert by leg
islative committees studying tax prob
lens in Ohio, Oregon and other
states. Undoubtedly he is one OF the
best men who could possibly nave
been selected for this task.
"Prof. Lutz made his report to the
Governor in December and with 1t Of
fered suggestions for changes IN Vne
income tax law. These were present.
ed to the senate committee on corpor-
alton and taxation and to the assem-
blv committee on taxation and a joint
executive session soon after the con-
vening of the legislature, at which
the governor also appeared on the IN
vitation to present his views, which
in some respects from those OF PfoI'
Lutz. A ia second joint session these
suggestions were again considered by
the two committees and tentative de-
cisions reached upon all Important
changes to be made in the present
law. The legislative reference IL
brary was then instructed to prepare
a tentative bill to carry out these c's-
cussions of the committee and was
also instructed to work with Mr.. At
wood the member of the tax commits
sion who for years has had charge OF
the administration Of the income tax
in preparing this draft. And this IN
struction was carried out, every sec
tion as drafted being submitted to Mr..
Atwood and revised by him to accord
with the experience of the tax COM
mission.
Tax Commission Backs Bill.
st can truthfully be said that ev-
ery important change which it makes
in the existing law has been recon-
mended for years by the tax commits
sion. The repeal of the personal prop
erv tax Offset has been unanimously
recommended by the commission since
1917 and the taxation of dividends
since 1921. II the truest sense this
is Joint COMMITTEES bill, an admin
istration bill and tax commission
bill. While individual members OF
the two committees and likewise the
governor and the tax commission
probably are not entirely satisfied
with every item therein, it represents
q nlan which can be accepted by ev-