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niinois A^jctdtural A^ociation 



RECORD 



Published monthly by the llUnoU Agricultural Assodatlon it 404 North Wesley Are., Mount Morris, 111. Entered as second class matter at po«t-oflBc« at Mount Morris, 111.. 

 Oct. 20, 1925, under the Act of Mar. S, 1879. AccepUnce for mailing at special rate of postage prorided In Section 411, Act of Feb. S8, l»i5, authorixed Oct. 2T. 1925. 



Number 5 



MAY, 1929 



Volume 7 



Truth About the State Income Tax i 



A Bill To Relieve Property Owners of a Portion of Their Unjust Tax Burden 



SENATE Bill No. 39, intro- 

 duced by Senator Lantz, and 

 known as the proposed State In- 

 come Tax Bill, could properly 

 be termed "a bill to relieve 

 property owners of a portion of 

 their heavy tax burden." 



This measure which has 

 passed the Senate and is now on 

 first reading in the House, pro- 

 vides for a tax on personal in- 

 comes, after exemptions, of 1 

 per cent on the first $5,000; 2 

 per cent on the second $5,000; 

 and 3 per cent on any amounts 

 greater than $10,000. 



Exemptions Liberal 



Exemption of $1,000 is al- 

 lowed single persons; $2,000 

 for married couples, and $500 

 for each child or other depend- 

 ent person. It also provides that 

 any property tax, real, personal, 

 or both, shall be subtracted 

 from the computed income tax. 

 Anyone properly understanding 

 this provision can not honestly 

 take the position that this bill 

 is just another tax. 



Following is an explanation 

 of how it works: Assume a 

 married man with two children 

 has an income of $10,000. He 

 would be entitled to an exemp- 

 tion of $3,000, leaving $7,000 

 subject to tax. Take 1 per cent 

 of the first $5,000, or $50 ; and 

 2 per cent on the remaining 

 $2,000, or $40. The two figures 

 added give a computed income 

 tax of $90. Should he pay a 

 property tax, on real estate and 

 personal belongings amounting 

 to $90, or more, this would be 

 subtracted from the income tax 

 of $90, resulting in no income 

 tax to pay. The supporters of 

 this measure maintain that any 

 citizen enjoying the benefits and 

 protection of government to the 

 extent of $10,000 income should 

 be willing and happy to contrib- 

 ute $90 for the maintenance of 

 local and state government. 



If you are intereited in a 

 more equitable distribution of 

 the tax burden, write your rep- 

 resentatives in the legislature 

 and tell then> to support the pro- 

 posed state income tax now 

 pending in the House at Spring- 

 field. 



A Replacement Tax 



"A study of the tax situation 

 in Illinois immediately con- 

 vinces one that very few citi- 

 zens of the state paying prop- 

 erty taxes of any kind will be 

 called upon also to contribute 

 under the provisions of this 

 bill," declared President Earl C. 

 Smith in a recent radio address 

 from WLS. "But rather that 

 great group of our citizens en- 

 joying equal privileges and pro- 

 tection with the property tax- 

 payers, and paying no property 

 tax of any kind, will come un- 

 der the provisions of this bill. It 

 is estimated that this group will 

 pay approximately eight mil- 

 lion dollars per year toward the 

 cost of government in the State 

 of Illinois. 



"Under the provisions of this 

 bill, such revenue as is derived 

 will be used in lieu of or re- 

 placement of the present State 

 Distributive School Fund up to 

 such an amount as is appropri- 

 ated for that purpose by the 

 legislature. We thus find it will 

 be used as a replacement of at 

 least part of the tax now levied 

 on property and, therefore, to 

 the full extent of its operation, 

 will more equitably distribute 

 present state taxes. 



One Out of 1200 



"Throughout the recent cam- 

 paign, citizens of all parties, 

 classes and creeds, agreed on 

 two things: One was to resist 

 further increase in tax on prop- 

 erty, and the other was to seek 

 more equitable means of dis- 



tributing the present taxes. 



"Out of some 1200 bills now 

 under consideration by the leg- 

 islature, this bill is the only 

 one which even tends to put 

 into practice the consensus of 

 thought of all groups of our 

 people on this question. This 

 bill has been opposed especially 

 by the metropolitan press. Nev- 

 ertheless it passed the Senate 

 April 24, and is now under con- 

 sideration in the House. 



Benefits Distributed 



"While it offers some relief to 

 farm owners, it could in no wise 

 be called an agricultural relief 

 measure. It is estimated that 

 one-half of the relief offered by 

 this legislation will be enjoyed 

 by the property taxpayers of 

 Chicago ; approximately one- 

 fourth by the property taxpay- 

 ers of the cities and towns 

 throughout Illinois, and the bal- 

 ance or approximately one- 

 fourth by the farm and home 

 owners in our rural territory. 

 Not An Added Tax 



"We sincerely regret to see 

 the attitude taken by some of 

 the city press, attempting to 

 stamp this bill as an effort to 

 further tax the people of our 

 cities. No one properly under- 

 standing the provisions of this 

 bill could honestly maintain such 

 a position. Our Association 

 would be very glad to send to 

 any interested citizen of Illinois 

 a synopsis of this bill showing 

 its constructive features and the 

 manner of its operations. 



"All those who believe that a 

 more equitable distribution of 

 the present cost of government 

 should be provided, can render 

 a great service and assistance 

 to the proponents of this legis- 

 lation by getting in touch with 

 their representatives in the leg- 

 islature and conveying to them 

 their request for support of Sen- 

 ate Bill No. 39." 



