Page Four 



THE I. A. A. RECORD 



May, 19} 1 



ano at the same time would officially 

 sanction the tremendous inequality in 

 taxation under our present system. While 

 farmers and real estate owners under 

 present conditions pay all the way from 

 20 to 50 per cent of their net income 

 in taxes, the income tax proposes a 

 maximum of only 6 per cent on net 

 income. 



The Companion Measures 



The companion bills, S. B. 164-165- 

 166-167-168-169-170-200, repeal levies 

 against property for state tax purposes 

 and give effect to the replacement fea- 

 ture of the proposed income tax. Thus, 

 if the measure raises $30,000,000 of 

 revenue for the State General Fund, a 

 like amount will be removed from the 

 levies against property. However, the 

 University of Illinois fund, the state 

 school fund, and the blind relief fund 

 are protected if by any chance the in- 

 come tax is held unconstitutional, by 

 authorization given state officials to levy 

 taxes for the General Fund, out of 

 which may be appropriated money for 

 the above purposes. 



At the same time Senate Bill 169 pro- 

 vides that the Governor, the Auditor of 

 Pubhc Accounts, and the State Treas- 

 urer are directed to estimate the revenue 

 to be derived from the income tax in 

 1932 and reduce the tax levy on prop- 

 erty to such an amount. 



It is estimated that the cost of ad- 

 ministering the state income tax will 

 require not more than 2 per cent of the 

 tax so collected and will probably re- 

 quire less. The cost of administering 

 the property tax, on the other hand, 

 is considerably greater than this per- 

 centage. 



Comparison of Tax Now Paid by Property, and Net Income 

 That a Person Would Have to Receive to Pay as Much Taxes 

 Under the Income Tax Bill as Property Owners Now Pay 



, «"■ 



Action in Three States 



On Income Tax Bills 



St. Paul, Minn., April 25. 



Bills proposed a constitutional amend- 

 ment authorizing an income tax have 

 been passed by both the House and 

 Senate. Under the Minnesota law such 

 an amendment must be submitted to 

 the electorate. 



Tallahassee, Fla., April 25. 



The bill proposing a constitutional 

 amendment permitting an income tax 

 has been passed by the Florida Senate 

 by a vote of 27 to 11. 



Lansing, Mich., April 25. 



The Michigan House has passed a bill 

 proposing a graduated personal income 

 tax. The sales tax was defeated. 



The sub-committee appointed to 



"frame a naf idnat f ruFt and vegetable 



growers' marketing plan with Federal 



Farm Board backing will meet in 



Washington May 18. 



Column 1 bdow shows the average owner pays (column 1 ) on his income 



tax now levied directly on property and from property (column 2).; ■ v 



indirectly on the income from property; (Note: If is here conservatively esfi- 



column 2 the net income from proper- mated that in recent years general taxes 



ty which on the average is only four levied on tax- paying property have 



times the actual taxes. Columns 4, 6 taken one-fourth of the net income 



and 8 show the income a single person, therefrom, computed before taxes are 



a married couple or the head of a paid. This is an indirect tax without 



family of four would have to receive any exemptions of 25 per cent on the 



to pay as much taxes as the property net income from tax-paying property. 



