The 



Dlinois A^cultural Assodation 



■^' RECORD 



Published monthly by the Illinois Agrricultural Association at 165 So. Main St., Spencer, Ind, Editorial Offices, 608 So. Dearborn St,, Chicago, 111. 

 Application for transfer of second class entry from Marshall, 111., to Spencer, Ind., pending. Acceptance for mailing at special rate of postage pro- 

 vi^d in Section 412, Act of Feb. 28, 1926, authorized Oct. 27, 1926. Address all communications for publication to Editorial Offices, Illinois Agri- 



cultural Association Record, 608 So. Dearborn St., Chicago. 



Number 4 



APRIL, 1931 



Volume 9 



Legislation — 57th General Assembly 



, ■ ; / A Review of Bills Your Organization Is Supporting at Springfield 



TAX revision based on 

 ability to pay, clarifica- 

 tion 'and improvement of 

 our state co-operative laws, 

 needed amendments to the 



' motor vehicle act, and a 

 series of minor bills to cor- 

 rect injustices or aid the 



. farmer in one way or an- 

 other comprise the legisla- 



'f tion sponsored or supported 

 by the Illinois Agricultural 



.' Association in the 57th 

 General Assembly of Illinois. 

 The bill of outstanding 

 importance to Illinois farm- 

 ers and property owners is 

 Senate bill 138 (Lantz) 

 which provides for a state 

 income tax. The companion 

 bills, 164-170 inclusive, and 



. S. B. 200 provide for the 

 administration of the in- 

 come tax and for using the 



Killing the Goose 



ABOUT three-fourths of all net income produced or re- 

 ceived in Illinois is now derived from personal indus- 

 try, which is wholly exempt from taxation under the pres- 

 ent taxing system. 



Only about one-fourth of all net income is derived from 

 the ownership of property, which is still compelled to 

 assume the entire burden of general property taxes. 



The burden on real estate and easily visible personal 

 property is made much heavier by the almost complete 

 evasion of taxes by all intangible property except bank stock. 



The situation is gradually growing worse because of the 

 increasing percentage of net income derived from personal 

 industry and tax-evading property. 



The only way to reach with direct taxes the majority of 

 our population which is now virtually exempt therefrom is 

 through an income tax. 



"Every legitimate tax is either directly or indirectly a 

 tax on income," says Prof. John E. Brindley of Iowa State 

 College. "By this we mean that it is paid out of the in- 

 come of the taxpayer. When the tax is greater than the 

 income, the balance must be paid out of capital. In this 

 way we kiU the goose that lays the golden egg of future 

 tax paying ability. In a word, 'we dry up the source of 

 future income,' to use the well known statement of Adam 

 Smith written in 1776." 



ment of the principal of the 

 Waterway Bonds and Sol- 

 diers' Compensation Bonds. 

 The bill provides for ad- 

 ministration by a Depart- 

 ment of Income Taxation, 

 co-ordinated with other de- 

 partments under the Civil 

 Administrative Code of the 

 state; for the requirement 

 of information from em- 

 ployers and others as to 

 any taxable sums amount- 

 ing to $700 or more paid 

 to any individual in any 

 taxable year; for exchange 

 of information with the 

 Commissioner of Internal 

 Revenue of the United 

 States or administrative offi- 

 cers of income taxes in oth- 

 er states; for suit by the 

 Attorney General for the 

 collection of taxes; and for 



prosecution by the Attorney General 



for fraud. ' 



The bill provides that the act shall 



be in effect January 1, 1932, and that 



revenue so derived to replace state The moderate tax rates after deduc- 



taxes now levied on property. tions and personal exemptions are ap- 



The state income tax bill imposes a plied on net income as follows: 

 tax upon the net income of all resident' 1% of the first $2,000 of tax. income, 



of the state including fiduciaries fot 2% of the next $3,000 of tax. income, the first returns shall be made and taxes 

 persons or estates, also income of non- 3% of the next $5,000 of tax. income, paid April 15, 1933, on net income re- 

 residents derived from sources within 4% of the next $5,000 of tax. income, cei'ved in the calendar year 1932 or in 

 Illinois. 5% of the next $10,000 of tax. income, any fiscal year ending in 1932. Any 

 Only Personal Incomes and taxpayer using a fiscal year is required 

 The bill does not apply to corpora- 6 per cent of all taxable income in ex- to make returns and to pay taxes on 

 tions or partnerships as such, the in- cess of $25,000. the 15th of the fourth month follow- 

 come from which is taxed only after it Examples are given on page 4 show- ing the close of his fiscal year, 

 reaches the individual. ing how personal exemptions are de- • n-ii 

 All ordinary business expenses includ- ducted from different amounts of net Companion Bills 

 ing general taxes on property may be income and how the several tax rates The companion bills accompanying 

 deducted from gross income in comput- are applied to different amounts of Senate bill 13 8 are necessary to insure 



taxable net income in computing the that the net proceeds of the income tax 



amount of income tax in each case. shall not be "jjist another fax" in addi- 



Not an Additional Tax tion to present taxes on property, but 



Taxes collected under this act will shall be substituted for and reduce gen- 



for each married couple or head of a be paid into the General Revenue Fund eral property taxes for state purposes, 



family, and $500 for each child under of the state to replace the tax on prop- This is accomplished by bills repeal- 



18 years of age or other dependent per- erty levied for all state purposes ex- ing acts or portions of acts providing 



cept for payment of interest and retire- for the levy and collection of taxes on 



ing the amount of net income. No per- 

 sonal or living expenses are deductible. 

 Personal exemptions are as follows: 

 |,' $1,000 for each single person, $2,000 



son. 



