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% Wisconsin ZaxpayersAlliance O f f i c i a l P u b l i c a t i o n . . . THE W I S C O N S I N ti o 2* TAXPAYER 122 W. WASHINGTON AVE. M AD ISO N 3, W ISC O N SIN TELEPH O N E 5-458 I iflr t 1951 PAUL N. R E Y N O L D S EXECUTIVE DIRECTOR Mr. Harriner ¿Sccles Board of Governors Federal Reserve Board Washington, D. C. Dear Mr. Eccles: When in Miami recently I heard a speaker at the Rotary Club refer to a talk which you gave some time ago in which you suggested that it might be well for the federal government to levy and collect all taxes* 1 believe he said you made this suggestion to a meeting of state officials which was held.in Washington. We would like to have a copy of this talk and hope this sketchy outline will be sufficient to identify it. Xours sincerely, Paul N* Reynolds :s Enel - 1 P.S.: What do you think of the enclosed copy of a letter from Commissioner Long of Massachusetts? --------------------------------------W. E. MALZAHN, President RICHARD A. BRACKETT OFFICERS AND DIRECTORS R. J. DEMPSEY ......................... - ......... ...... H. H. SEAMAN, Secretary-Treasurer O. J. FALGE A* W. MILLER COLA G. PARKER 1 " ........ T. B. MYERS, Vice-President S. N. PICKARD J. V. QUARLES Digitized forPURPOSE: FRASER By non-political action to promote economical government to taxes may be levied with the lightest possible burden consistent with public welfare. TYPES OF TAXPAYERS' ORGANIZATIONS: Henry F. Long is the w el l -k no wn Commissioner of Taxati on in Massachusetts and one of the outstanding tax a u t h o r i t i e s in the Uni ted St a te s. Read what Commissioner Long has to say about the Wi sconsi n Taxpayers A l l i a n c e . Coe £ THE COMMONWEALTH OF MASSACHUSETTS DEPARTMENT OF CORPORATIONS AND TAXATION STATE HOUSE, BOSTON June 30, 19f>0 Paul N. Reynolds, Executive Director Wisconsin Taxpayers Alliance 908 Tenney Building Madison, Wisconsin Dear Mr. Reynolds: It seems to be that there are clearly two kinds of taxpayers associa tions . There may be a third kind about which I will speak. The first kind of taxpayers* association is the kind I look to with a good deal of reverence and watch with a great deal of satisfaction as a type of which the Wisconsin Taxpayers Alliance is one. This sort of taxpayers’ associa tion, and it is the only kind I know of that has survived, is the one that gives to the persons interested the facts in respect to their government. It is re luctant to draw conclusions, it gives all the facts, and it does not withhold any thing which might be reflective of the true condition of a governmental unit. It constantly, however, makes this information available and *hile it may use devices to present the information so that it will be quickly absorbed it does not undertake to be a political organization, to seek publicity, or to do other than to be a very definite aid to the taxpayers. This puts the taxpayer into the position where he can rely on that sort of association and is not constantly fear ful that some unholy motive is back of what he is getting or that there are people seeking personal private profit and gain. This sort of taxpayers’ association is, as you can sense, a fact-finding body for the people. Its reports can be relied upon as the dictionary can be relied upon. It is totally impartial, impersonal and merely calls attention to facts. There is the second kind of taxpayers’ association that may be only a group that seeks publicity. It has no lcng range thought as to what might be good or bad but perhaps thinks in terms of coming in and making a quick conquest so as to get some personal benefit. It relies on publicity and statements which attract the front page to keep it in the limelight and possibly to get subscriptions. It undertakes to take that which comes to it that could be put out as facts and digested by intelligent readers in such shape as will make for scare heads and arouse the people. Unquestionably, there is a field for this sort of activity just as it may be a gpod idea when a person wants his windows washed instead of doing it quietly to call out the fire department and get them to do it for him. (more) Occasionally people get to be vitalized by something moving fast across the stage and temporarily much benefit may flow from it but it does not impress me as something which is permanently of benefit and I know it inpresses none with the thought that definite reliance can be had on its activities or what it says. Of course, the third group with which you are not concerned and possibly do not even know of their existence, is the one which is formed primarily for specific private purposes. It makes quite a show for some time and is more dramatic than one can Imagine wauld be possible with such little material as it has to irork on. Being possessed of good publicity people it seizes on something that has popular appeal and away they are to headlines for a short period and after the aaoke has cleared away it will be found that it has attained its objective but it is purely private. It is my thought that the Wisconsin Taxpayers Alliance is one of the taxation groups throughout the country that has earned the confidence of all who know anything about government. It has earned it by doing that which was best for all the people at all times. With every good wish, Cordially yours, (Signed) Henry F. Long Commissioner of Corporations and Taxation HFL:RH v March 12, 1951. Mr. Paul N. Reynolds, Executive Director, Wisconsin Taxpayers Alliance, 122 West Washington Avenue, Madison 3, Wisconsin. Dear Mr. Reynolds: I read the copy of Commissioner Long’s letter that you sent me, and think it is very complimentary to your association. The taxpayer is certainly entitled to an ex planation of what taxes are being collected and the purposes for which tax revenues are being used— an association that performs such a service without seeking to bias the facts or to use them for purely political purposes serves an ex tremely useful and important function. I believe the enclosed copy of a speech which I delivered on October 14, 1941, before the National Tax As sociation at the University of Minnesota is the one you have in mind. Very truly yours, M. S. Eccles. CRSsmf % Wisconsin ZaxpayersAlliance O f f i c i a l P u b l i c a t i o n . . . THE W I S C O N S I N TAXPAYER May 10, 1951 122 W. WASHINGTON AVE. M AD ISO N 3, W ISC O N SIN TELEPH ON E 5-458 1 p a u l n. R e y n o l d s EXECUTIVE DIRECTOR Mr* Marriner S. Eccles Board of Governors Federal Reserve System Washington, D. C. Dear Mr* Eccles: This is a belated reply to your letter of March 12 in which you comment on a copy of a letter from Commissioner Long of Massachusetts* We are glad you approve of the aims and purposes of our organization* Incidentally, did you see the entertaining article on Mr* Long in the April 7 "Collier’s”? Thank you for sending us a copy of your October 14, 1941, address to the National Tax Association meeting at the University of Minnesota. It happens that I attended the conference— -and remember very well hearing your talk. Dr* Alexander and the other men on our research staff appreciate reading your address. We all agree that it is one of the best examples we have seen of a talk dealing with technical aspects of taxation and fisoal policies. It is we 11-organized and stated in simple yet effective language. We enclose a copy of the May issue of our official publication, the Wisconsin Taxpayer. This issue deals with the trend of tax collections in Wisconsin. Your comments on the Taxpayer— and suggestion for improve ment— would be much appreciated. Yours sincerely, < r ^ A 1 4 » TO T\ « A Am A M Executive Director * Paul N. Reynolds :d Enel - 1 ■ .............■■■— ...... - ■ ■■ W. E. MALZAHN, President RICHARD A. BRACKETT ■ -- OFFICERS AND DIRECTORS :------------——: ^ H. H. SEAMAN, Secretary-Treasurer R. J. DEMPSEY O. J. FALGE A. W. MILLER ......... ---------------------- ----------- ---------- ; T. B. MYERS, Vice-President COLA G. PARKER S. N. PICKARD J. V. QUARLES PURPOSE: By non-political action to promote economical government so taxes may be levied with the lightest possible burden consistent with public welfare. THE WISCONSIN A SERVICE O F T HE W I S C O N S I N TAXPAYERS ALLIANCE THE WISCONSIN TAXPAYER Published each month by the Wis consin Taxpayers Alliance, 122 W. Washington Ave., Madison 3, Wis. R A D I O YOUR W ISCONSIN G O VERNM ENT-A Radio address prepared each week by the Wis consin Taxpayers Alliance is presented as a public service feature over the following stations: WATW Subscription Price One Year $1.00 Three Years $2.00 TALKS ...... A s h la n d ........ Mon., 9:30 p.m. WGEZ ........ Beloit ........... Sat., 4:45 p.m. WEAU ........Eau C la ire ___ Sun., 10:30 p.m. KFI2 .......... Fond du Lac ..Wed., 7:15 p.m. Vol. 19 MAY, 1951 No. 5 Officers and Directors The Wisconsin Taxpayers Alliance WDUZ ...... Green Bay ....Tues., 8:45 p.m. WCLO ...... Janesville....... Wed., 8:15 p.m. W K B H ........ La C ro sse ........ Sat., 1:15 p.m. WLOY ........ Ladysmith ....M on., 7:30 p.m. W HA W. E . M a lza h n ............. President T. B. M y e r s ............Vice-President ........ M a d iso n ..........Sat., 1:00 p.m. WDLB . . . . . .Marshfield ... .Mon., 7:30 p.m. W I G M ........Medford .......Tues., 8:45 p.m. W N A M ...... Neenah ........ Sat., 11:30 a.m H. H. S e a m a n . .Secretary-Treasurer WRJN ........Racine ........ Sun., 11:15 a.m. R. A. B rackett WJMC R. J. D e m p s e y O. J. F alge A. W. M il l e r C ola G. P arker S. N. P ickard ...... Rice Lake .......Sat., 5:00 p.m. W R C O ........ Richland Center .Sat., 1:00 pm. WLBL ........Stevens Point ..Sat., 1:00 p.m. W B K V ........ West B e n d ....... Sat., 4:30 p.m. J. V. Q u ar les Executive Staff P a u l N . R ey n o l d s . .Executive Dir. C. K. A l e x a n d e r ___ Research Dir. J ohn P . R e y n o l d s . . . . Assistant Dir. J. W. V il b e r g . . .Senior Accountant R. V. E stes . . . . Field Representative I. M. C a m p b e l l ___ Field Secretary E. M. J o h n so n . . . . . Office Manager Entered as second-class matter September 1, 1934, at the post office at Madison, Wisconsin, under the act of Mar. 3, 1879. The Wisconsin Taxpayers Alliance is a nan-political, citi zen - supported organization, dedicated to study the problems and services of government. The results of its research are presented in the interest of an informed public opinion and citizen participation in affairs of government. The Alliance is not affiliated in any way with any federal, state, county, city, or other organization. Total federal, state, and local taxes levied or collected in Wisconsin have exceeded a billion dollars for the seventh consecutive year. Tax collections in Wisconsin in the fiscal year which ended June 30, 1950 amounted to $1,178,000,000. Total taxes were down three million dollars from 1949 and were only 7 million dollars short of the all-time record set in 1945. ☆ ☆ ☆ Total federal taxes dropped off in 1950, but state and local govern ment collections climbed 27 million dollars to a record 419 million. Federal taxes for 1950 were 758 million dollars as compared with 788 million in 1949. ☆ ☆ ☆ Despite the slight decline in federal tax collections, the federal gov ernment still claims 64 cents out of the average tax dollar collected in this state. The state's share was 18 cents in 1950, and local governments collected a similar amount of the 1950 tax dollar. ☆ ☆ ☆ Revenues from income taxes declined in 1950. Federal income tax collections fell off 37 million dollars, but revenues from other federal taxes were up, resulting in a net over-all drop of about 30 million dollars. State income taxes dropped 2 million dollars, but a 29 million dollar increase in general property and other taxes more than offset this loss. ☆ ☆ ☆ Since 1930, total federal tax collections have increased over 2000 percent; state taxes are up 239 percent; and local tax revenues have climbed 71 percent. 1 (33) Total Taxes in W isconsin-1950 Total Federal, State, and Local Taxes in State Exceeded One Billion Dollars for Seventh Year For the seventh consecutive year total taxes paid to local units of gov ernment, the state of Wisconsin, and the federal government by individuals and corporations in Wisconsin were well over a billion dollars. Total taxes levied or collected in Wisconsin by all units of government for the fiscal year which ended June 30, 1950, were about $1,178,000,000. This was seven million dollars short of the all time record established in 1945. Compared with the previous year, tax collections in fiscal 1950 dropped about three million dollars. This net reduction in total tax receipts re sulted from a $30 million decrease in federal collections, offset by a $27 million increase in state and local tax collections. consin declined $12.3 million during this period, while taxes on individuals, including withholding taxes, dropped off $23.1 million. This reduction is due primarily to a decline in the level of economic activity and income pay ments to individuals; there was no change in the federal income tax rates during the 1949-1950 fiscal years. Motor Vehicle. Increased collec tions from motor vehicle taxes, largely from gasoline and trucks and autos, was due to expanded sales rather than higher tax rates. Others. Greater collections from taxes on consumer items came prin cipally from a $2 million rise in beer tax yields. Social security, or old age benefits, accounted for nearly all of the $3 million increase in employ ment taxes between 1949 and 1950. Federal Taxes State and Local Taxes The net reduction in total federal collections was due to a sharp decline in income tax receipts, partially com pensated by increased revenues from certain other taxes. Federal collections by type of tax for the fiscal years 1949 and 1950 were as follows (in mil lions): While federal tax collections went down in fiscal 1950, state and local taxes in Wisconsin increased from $392.4 to $419.4 millions, a gain of $27 million. State and local collec tions by type of tax for the fiscal years 1949 and 1950 were as follows (in millions): Tax 1949 1950 Change Incom e............ $588.4 $551.4 —$37.0 Motor Vehicle . 18.1 21.4 + 3.3 Utility ............ 12.6 12.9 + 0.3 Business . . . . . . 1.3 1.3 0.0 Death and Gift 10.7 9.9 — 0.8 Consumer Items 115.6 117.0 + 1.4 Employment . . 41.5 44.5 + 3.0 Total ....$ 7 8 8 .2 $758.4 —$29.8 Tax Income. Revenue from federal in come taxes on corporations in Wis 1949 1950 Change Property.......... $194.6 $209.4 +$14.8 In com e............ 87.4 85.4 — 2.0 Motor Vehicle . 50.8 55.3 + 4.5 Utility ............ 19.3 19.6 + 0.3 Business.......... 4.4 4.7 + 0.3 Death and Gift 5.6 5.6 0.0 Consumer Items 18.6 26.1 + 7.5 Employment .. 11.5 13.2 + 1.7 Miscellaneous 0.2 0.1 — 0.1 2(34) Total ........ $392.4 $419.4 (Continued on page 7) +27.0 THE WISCONSIN TAX DOLLAR Federal, State, and Local 1950 The extent of the federal government's dominance in the tax picture in Wisconsin is clearly seen in the chart above. In 1930, local governments collected over half of all taxes. By 1940, the local, state, and federal gov ernments were collecting about equal amounts. Last year, 1950, the fed eral government collected nearly two-thirds of all taxes in this state. The break down of the tax dollar in selected years follows: Local .......... State 1930 1940 1950 56c 38c 18c .......... ...... 28c 32c 18c ....... ...... 16c 30c 64c Federal Since 1930, the federal government has increased its share of the Wisconsin tax dollar by 48 cents. The state and local units of government have lost ground on this basis, even though their total collections have increased considerably. With the federal government predominating in the over-all tax pic ture, the state and local units of government have been pressed to find sources of additional revenues. 3(35) TOTAL TAXES IN WISCONSIN Fiscal Years Ended June 30, 1940-1950 1200 ï 1000 < 800 £ 600 o ■ ■ I Federal State and Local 400 200 1940 1941 1942 1943 1944 1945 1946 1947 1948 1949 1950 The expansion of tax collections in recent years, especially federal taxes, is illustrated in the chart above. Total taxes collected in Wisconsin in 1950, by the federal, state, and local governments, were within seven million dollars of the all-time peak reached in 1945. Collections in 1950 dropped nearly three million dollars from 1949. While federal tax collections fell off 30 million dollars from 1949, a 27 million dollar increase in state and local taxes nearly offset the fed eral decline, leaving a net total of near-record levels. State and local taxes, the black portion of the bars, have been climbing at a fast rate in the years following the end of the war. The 1950 total of state and local taxes, 419 million dollars, is the highest in state history. Federal taxes, the shaded portion of the bar, account for just under two-thirds of all taxes collected in Wisconsin. 4(36) COMPARATIVE FEDERAL AND WISCONSIN TAX RATES April 1, 1951 Federal Wisconsin Individual Income 2 0 % to 9 1 % 1% to 7 % * Plus 2 5 % Surtax Corporate Income 2 5 % to 4 7 % * * 2 % to 6 % * H! A u % 7 Ij^ ll Beer (barrel) -6* 00 Tax $1 Cigarettes (per package) 7c 3c Liquor (gallon) $9 $2 3 % to 7 7 % 2 % to 4 0 % 1 5 % lim it*** Luxury Tax (watches, etc.) 20% None Gasoline (gallon) V/2C 4c 1■ t u Estate or Inheritance A i '* ' * Plus teachers retirement surtax. *** Plus surtax of 30% of tax. ** Plus excess profits tax of 3 0 % o f excess profits. 5(37) TOTAL FEDERAL, STATE AND LOCAL TAXES COLLECTED IN WISCONSIN* Fiscal Year Ended June 30, 1950 State and Local Federal Total Federal State and Local Percent of Total TOTAL ............................................... Real and Personal Property ........ Income Taxes ................................... Corporation ................................. Individual ....................................... Withholding, Salaries & W ages Teachers' Retirement .................. 25% Surtax ..................................... All Expired Surtaxes .................. Dividends ....................................... Excess Profits—Declared Value Excess Profits—1940, '41, '42 Revenue Acts ........................... $419,350,385 $758,371,637 $1,177,722,022 100.0 209,355,996 636,756,400 258,202,702 160,635,873 192,522,373 8,037,864 7,594,612 67,035 4,514,378 70,519 17.8 54.1 21.9 13.7 16.4 0.7 0.6 (a) 0.4 (a) 5,111,044 5,111,044 0.4 Motor Vehicle Taxes ....................... Gasoline ........................................... License Fees (Auto & Driver) . . Trucks, Transportation ................ Lubricating Oils ......................... Tires and Inner Tubes ................. Parts and Accessories ................. Trucks and Autos ......................... $ 55,255,891 31,455,230 20,990,177 2,810,484 $ 21,374,378 2,223,347 76,630,269 33,678,577 20,990,177 2,810,484 6.5 2.9 211,022 211,022 Special Utility Taxes ....................... Railroads ......................................... Power & Light Utilities .............. Telephone, Telegraph, Cable & Leased Wire ............................... Freight Lines ................................. Sleeping Car Companies ............ Express ............................................. Electrical Energy ......................... Rural Electric Cooperatives ........ Airlines ........................................... $ 19,571,998 5,586,819 9,833,733 $ 12,947,166 3,736,550 125,313 19,081 16,284 10,547,426 Other Business Taxes ..................... Coal, Grain & Scrap Iron ............ Insurance ......................................... Beekeepers ..................................... Mink Farms ..................................... Capital Stock ................................. Stock Transfer Stamps ................. Bowling Alleys, Pool Tables, etc. Coin-Operated Devices .............. Business and Store Machines . .. 4,739,979 252,270 4,475,649 5,940 6,120 Tax 209,355,996 85,373,417 34,423,477 30,736,051 ’ ¿,037,864 7,594,612 67,035 4,514,378 70,519 53,876 2,817,751 16,068,382 $ 5,655,143 5,111,612 Taxes on Consumers .................. Liquor and W ine ........................... Beer ................................................. Tobacco ........................................... Narcotics & Marijuana ................ Cocoanut Oil, Etc........................... Playing Cards ............................. Radios & Components ................. M echanical Refrigerators, etc. . . Sporting Goods ............................. Admissions ..................................... Club Dues, etc................................... Safety Deposit Boxes .................. Sugar ............................................... Oleomargarine ............................. Phonograph Records ..................... Photographic Apparatus ............ $ 26,056,595 12,037,475 3,006,588 9,950,116 " 543,531 1,062,416 6(38) 1.8 0.2 (a) (a) 53,876 2,817,751 16,068,382 0.2 32,519,164 5,586,819 9,833,733 2.8 0.5 0.9 14,283,976 125,313 19,081 16,284 2,399,740 220,712 33,506 1.2 (a) (a) (a) 0.2 (a) (a) 6,064,982 252,270 4,475,649 5,940 6,120 2,680 844,056 101,300 279,782 97,185 0.5 (a) 0.4 ’9,352,347 517,190 15,524,680 5,111,612 9,352,347 1,060,721 1.3 0.4 $116,956,431 854,582 92,557,468 149,360 9,676 3,985 1,447,739 10,940 109,176 196,675 6,885,087 394,382 210,629 179,218 9,497 1,214 160,965 $ 143,013,026 12,892,057 95,564,056 10,099,476 9,676 3,985 1,447,739 10,940 109,176 196,675 6,885,087 394,382 210,629 179,218 1,071,913 1,214 160,965 12.1 1.1 8.1 0.9 (a) (a) 0.1 (a) (a) (a) 0.6 (a) (a) (a) 0.1 (a) (a) 2,399,740 ' 220,7Ì 2 33,506 Death and Gift Taxes ..................... Inheritance Tax & Surtax ........... Estate ............................................. Gift Tax ........................................... 551,382,983 223,779,225 129,899,822 192,522,373 $ 1,325,003 2,680 844,056 101,300 279,782 97,185 $ 9.869,537 $ 1.4 0.1 (a) (a) (a) 0.8 0.1 State and Local Tax Federal Musical Instruments ............................. Luggage .............................. Electric, Gas & Oil Appliances ......... Silver Bullion Transfers .. . ....... Electric Light B u lb s .............................. Jewelry ................................................... Furs ............................. Toilet Preparations .............................. Transportation of Persons ................... Transportation of Property ................. Total Federal State and Local 100,356 1,056,986 4,168,370 1,086 1,122 3,031,339 949,250 1,199,061 389,671 2,878,597 Employment Taxes ....................... ........ Carrier .................................................... Unemployment Compensation ........... Old A ge Benefits .................................. $ 13,221,732 Miscellaneous Taxes .............................. Forest Crop ............................................ Other ....................................................... $ 13,221,732 119,634 105,020 14,614 Percent of Total 100,356 1,056,986 4,168,370 1,086 1,122 3,031,339 949,250 1,199,061 389,671 2,878,597 (a) 0.1 0.4 (a) (a) 0.3 0.1 0.1 (a) 0.2 $ 44,515,238 273,043 4,674,132 39,568,063 $ 57,736,970 273,043 17,895,864 39,568,063 4.9 (a) 1.5 3.4 $ $ 120,535 105,020 15,515 (a) (a) (a) 901 901 * Source—Wisconsin Department of Taxation Bulletin No. 156 and U. S. Commissioner of Internal Revenue 1950 Annual Report. (a) Less than 1/10 of one percent. Note: State and local figures (except property and special utility taxes which are levies) are net receipts; federal figures are gross, refunds not being deducted. Customs or non-tax collections are excluded. The figures do not necessarily indicate the tax burden on Wisconsin residents. (Continued from page 2) Property. Increased taxes on prop erty and certain consumer items were chiefly responsible for the $27 million gain in collections by the state of Wisconsin and its local units of gov ernment. A 14.8 million dollar jump in the general property tax levy on real and personal property boosted the total yield to well over 200 million dollars. Sales. The 7.5 million dollar in crease in state tax collections on con sumer items largely stemmed from higher receipts from taxes on liquor and wine and on tobacco (cigarettes). Liquor taxes rose 4 million, and cigar ette taxes 3 million dollars. The sharp gain in cigarette tax revenue from 7 to 10 million dollars resulted pri marily from a one cent per pack tax increase, rather than greater consump tion. Motor Vehicle. Motor vehicle taxes reached an all-time high in 1950, yielding $4.5 million more than in 1949. For the second year in a row taxes paid by Wisconsin highway users exceeded 50 million dollars. The increase in 1950 over 1949 is mainly attributable to sharp gains in collec tions from the state's four cent gaso line tax and from motor vehicle fees. Income Returns Income. Somewhat neutralizing gains from other state and local taxes was a two million dollar reduction in collections from state income taxes. Income tax receipts fell from $87.4 in 1949 to $85.4 million in 1950. Despite the decline income taxes con tinued to be the most important source of general state revenue, and yielded over 20 percent of all state and local tax collections. The normal income and teachers' retirement surtax on both individuals and corporations fell 10 million dol lars in 1950, with no changes in rate. However, this drop was offset to a large extent by collections of 7.5 mil lion dollars from the 25 percent sur 7(39) tax on individuals, enacted by the 1949 Wisconsin Legislature. In the total tax picture, the federal government continued to dominate in the amount of taxes collected from individuals and corporations in Wisconsin. Federal tax collections amounted to over 64 percent of total tax collections in this state in 1950. Income taxes, chief source of reve nue for both the federal and state government, was the most important tax, yielding 54 percent of all collec tions. Revenues from the local gen eral property tax ranked second, tak ing 18 percent of the total taxes, fol lowed by state and federal taxes on various consumer items, taking 12 per cent. Motor vehicle taxes and employ ment taxes ranked fourth and fifth respectively in the total tax picture. While total taxes collected in Wis consin have increased 436 percent since 1930, federal taxes have gone up more than 2,000 percent. In 1930, total federal taxes collected in •this state amounted to 36 million dollars. Last year the federal government col lected 758 million dollars from Wis consin taxpayers. In the same period, taxes collected by the state of Wisconsin increased from 61 million dollars to over 207 million dollars, an increase of 239 percent. Local tax levies climbed from 124 million dollars in 1930 to 212 million dollars last year. This repre sents an increase of 71 percent. The chart on page 5 illustrates the high comparative federal tax rates to Wisconsin tax rates. Trends The total tax figures included in this issue do not reflect the exact tax burden shouldered by Wisconsin tax payers. Various fees, fines, permit costs, business licenses, and like revenues are not included. Nor is the final incidence of certain taxes taken into consideration. For example, federal beer taxes collected from the brewer in Wisconsin are in cluded in the total, even though con sumers in other states may eventually pay the tax. On the other hand, fed eral excise taxes on liquor and cigar ettes purchased by Wisconsin con sumers are not included in these totals if the product is manufactured in another state. Thirdly, it should be remembered that the unit of government which collects a particular tax is not neces sarily the unit which spends the revenue. The charts on pages 3 and 4 show two major trends in taxes collected in Wisconsin: one, total taxes are in creasing, and two, the federal govern ment is taking an increasingly larger portion of the Wisconsin tax dollar. As indicated in the chart on page 4, total taxes in Wisconsin in 1950 fell only a little short of the record high collections of $1,185,000,000 in 1945. Total taxes declined slightly from 1945 to 1946, and fell off again in 1947. The trend was reversed in 1948 and 1949, with soaring property and income taxes, but fell slightly in 1950. From 1930 to 1950, total taxes levied or collected in Wisconsin in creased 436 percent. Total collections by the local, state, and federal gov ernments in 1930 were about 220 million dollars. Burden 8 (40) COUNTY CONTRACTS The following are brief statements of points of law in opinions handed down by Attorney General V e r n o n W . T h o m s o n from February 15 to March 22, 1951. DRIVERS' LICENSES Motor Vehicle Commissioner must revoke operator’s license upon receipt of record of conviction of operating vehicle while intoxicated, in violation o f city ordinance conforming to state statute, notwithstanding that person con victed claims evidence was insufficient to sup port such conviction.— M otor V eh icle D epart m ent. CITY-COUNTY BUILDING A d ty and county may construct a joint dtycounty building which will be known as a “ Safety Building” and which will be used for courthouse and city hall purposes. A d ty and county have authority to issue general obligation bonds to finance their respec tive share of the cost of constructing such build ing.— E ug en e F . M cE ssey , F on d du L a c County. PUBLIC WELFARE PERSONNEL Personnel employed by state department of public welfare for purpose of administering diagnostic center may be placed on payroll of said department o f public welfare.— D epartm ent o l P u b lic W elfa re . CONSTITUTIONAL AMENDMENTS Joint Resolution No. 6, 1951, provides for an amendment of Article X I, section 3, of the Constitution, which if adopted will increase the debt limitation, in dties authorized to issue bonds for school purposes, from 5 % to 8 % of the value o f the taxable property in such dties. Joint Resolution No. 7, 1951, provides for an amendment o f Article II, section 2, of the Constitution, which if adopted will authorize the state of Wisconsin with the consent^ of Congress to tax lands owned by the United States.— Secretary o i State. TRUST FILING FEES Common law trust which was created and which sold all of its benefidal certificates prior to the enactment of law requiring filing fee to be paid must pay the full filing fee imposed by that section, including the fee of $1 for each $1,000 of benefidal certificates sold.— Secretary o f Sta te. LIFE INSURANCE AGENTS Power of commissioner of insurance to make rules and regulations pertaining to life insur ance agents does not authorize acceptance of certificate by life insurance company that ap plicant has satisfactorily completed its agents* training course and is recommended as quali fied for a license as a life insurance agent as substitute for application and written examina tion.—D e p a r t m e n t o f I n s u r a n c e . Additional work on county asylum building which will add about $60,000 to the cost of about $65,500 covered by original contract must be let by contract to lowest responsible bidder in the absence o f facts or drcumstances bringing the situation within any well recognized excep tions or limitations^ to the mandatory effect of such a statute. This section does not apply to purchase of equipment such as mattresses, chairs and dressers.— W illiam R . Glasow , M anitow oc C o unty. BRIDGE TAXES Cities and villages which have constructed bridges under “ Long Bridge Statutes” , may be taxed for aid to town bridges. Receipt of county aid for bridge by city or village does not neces sarily subject the munidpality to bridge tax.— R a ym on d P . D oh r, O utagam ie C ou nty. DEPUTY SHERIFFS County board may by ordinance authorize the sheriff to appoint as undersheriff a person hold ing the office of deputy sheriff under dvil service after giving him a leave of absence from the position of deputy sheriff; and upon ceasing to serve as undersheriff such person reverts to his former status as a deputy sheriff without loss of civil service standing.— Edw ard A . K ren zk e, R a cin e C ou nty. SEXUAL PSYCHOPATHS Statute relating to the commitment and treat ment of “ sexual psychopaths” in Milwaukee county has never become effective because the Milwaukee county board has not designated an institution for that purpose. If such persons are mentally ill, infirm or defident, proceedings may be had under usual procedure for care of such persons.— W ilson H . B ru e, Iowa C ou nty. FIRE INVESTIGATION EVIDENCE All information and physical evidence ob tained by state fire marshal and his deputies in investigating fires is privileged from dis closure in dvil cases. State fire marshal is the only one authorized to waive the privilege. When he or his deputies are subpoenaed they must respond by appearing in court and trial court should conduct preliminary examination to determine whether the privilege has been waived in whole or in part. State fire marshal should waive privilege whenever he can safely do so in order to prevent injustice to private litigants. Privilege does not apply when evi dence is needed by state in criminal prosecu tion.— S ta te F ire M arshal. VETERANS' AID In case o f need, aid may be extended by county veterans service commission to family of honorably discharged soldier who has re turned to and presently is in the service of the United States Army.— Jam es H . L e v i, Portage C o unty. DEPUTY SHERIFFS Where county traffic patrolman is also a deputy sheriff not under dvil service, sheriff may require him to give bond notwithstanding that he has given bond as traffic patrolman.— W illia m R . G lasow , M anitow oc C o u n ty. Tax Questions Q. How much of the Wisconsin tax dollar is collected by the fol lowing governments: (a ) Federal? ( b ) State? ( c ) Local? A. See page 3. ★ ★ ★ Q. What are the comparative federal and state tax rates on: (a ) Corporate income? (b ) A barrel of beer? ( c ) A watch? A. See page 5.
@FedFRASER