November, 1931 



THE I. A. A. RECORD 



Page Five 



r>'. 



vide methods of meeting obligations al- 

 ready created. 



That part of the report providing for 

 new sources of revenue to replace part 

 of the heavy burden on real estate con- 

 tinues in part as follows: 



A. "EVERY CONSIDERATION 

 POINTS TO THE CONCLUSION 

 THAT THE TIME HAS COME 

 FOR THE ENACTMENT OF A 

 STATE INCOME TAX. THE 

 FAIREST DISTRIBUTION OF 

 GOVERNMENTAL BURDEN YET 

 DEVISED HAS BEEN ACCOM- 

 PLISHED BY THE FEDERAL IN- 

 COME TAX." 



The report declares that income tax 

 laws have been enacted in Arkansas, 

 Delaware, Georgia, Massachusetts, Mis- 

 sissippi, Missouri, New Hampshire, New 

 York, North Carolina, North Dakota, 

 Oklahoma, Oregon, South Carolina, 

 Tennessee, Virginia and Wisconsin. 



The income tax proposed in the rec- 

 ommendations is to be paid in quarterly 

 installments, staggered with respect to 

 the federal income tax payments in or- 

 der to distribute the load throughout 

 the year. 



It is estimated that the bill will pro- 

 duce at least $30,000,000 of revenue 

 per year. i. .7 .; 



To School Fund 

 It is proposed that the money so de- 

 rived be used to replace taxes now 

 levied on property 

 for the state distrib- 

 utive school fund; 

 second, for an equit- 

 able distribution of 

 the remainder be- 

 tween Cook county 

 and the rest of the 

 state; and third, for 

 distribution among 

 the elementary 

 school districts with- 

 in counties. 

 The chief features of the bill are as 

 follows: 



1. Exemptions: Single persons, $1,- 

 000; married couples, $2,000; children 

 under 18 years and other dependents, 

 S200 each. A filing fee of $2 to be 

 paid by every single person with a net 

 income of $1,000 or more and by mar- 

 ried couples with net income of $2,000 

 or more. 



2. Rates on Taxable Net Income; 

 1% on $1,000 or less; 2% on $1,000- 

 $4,000; 3% on $4,000-$9,000; 4% 

 on $9,000-$16,000; 5% on $16,000- 

 $25,000; 6% on all above $25,000. 



3. Deductions and offsets: The usual 

 deductions are allowed from gross in- 

 come in determining net income. In 

 addition, there may be credited against 

 the tax computed upon net income the 

 amount of taxes paid or accrued which 

 have been imposed by state or local 



.1. C. 'WatNon 



WHO»S WHO 



EXECUTIVE COMMITTEE 



GOVERNOR'S 



TAX CONFERENCE 



Joseph K. Brittain, chairman, is 

 vice-chairman of the Chicago Asso- 

 ciation of Commerce; Phillip R. 

 Clarke, president, Central-Republic 

 Trust Company; Omer N. Custer, 

 chairman, Illinois Tax Commission; 

 Samuel InsuU, owner of extensive 

 utility properties; George F. Nixon, 

 president, Chicago Real Estate Board; 

 Victor A. dander, secretary, Illinois 

 State Federation of Labor; Fred W. 

 Sargent, president, Chicago & North- 

 western Railway; Wm. H. Sexton, 

 corporation counsel for Chicago; 

 Earl C. Smith, president, Illinois 

 Agricultural Association; S. E. 

 Thomason, publisher Chicago Times; 

 Ray Wantz, Rockford manufactur- 

 er; and Douglas Sutherland, secre- 

 tary. Civic Federation of Chicago. 



governments in Illinois, but not taxes 

 of a character to increase the value of 

 the property assessed. The amount of 

 such credit shall not exceed that pro- 

 portion of the computed tax, which the 

 net income derived from the tax-paying 

 property bears to the total net income. 

 Owners of their homes are allowed a 

 credit against computed tax on net in- 

 come of taxes paid on such homes, not 

 exceeding in amount $100. 



4. Payments to be in quarterly in- 

 stallments, beginning April 15, 1933. 



Tobacco Tax 



Other proposals recommended are a 

 tax upon the sale of manufactured to- 

 bacco and tobacco products. It is es- 

 timated that revenues approximating 

 $18,000,000 annually would be avail- 

 able from this tax. As in the case of 

 the income tax, these revenues would 

 be used to abate property taxes as de- 

 scribed above. 



The bill provides for a 20 per cent 

 tax upon the retail selling price of all 

 forms of manufactured tobacco, effec- 

 tive July 1, 1932; to be administered 

 as a stamp tax; the revenues to be paid 

 into the public school fund. 



It is suggested also that additional 

 revenue may properly be provided by 

 increasing the license fees for certain 

 heavy trucks and busses to put such fees 

 on a parity with those charged in other 

 states. The revenues from this source, 

 estimated at approximately $800,000 

 per year, would be used in abatement 

 of property taxes. The proposed ad- 

 ditional tax covers heavy trucks and 

 trailers with a gross weight including 

 maximum load in excess of 15,000 

 pounds. '■■'■■ ;;.''^'', ;■ . '■'''••'.:.:'.'• :'■:'■■;"•■' ':'.;-^'-. 



The state income and tobacco taxes, 

 it is recommended be administered by 

 a new Department of Revenue. Other 

 proposed legislation provides for details 

 in connection with making the income 

 and tobacco taxes real replacement taxes 

 rather than additional taxes. 



Legislation to provide better enforce- 

 ment of the personal property tax par- 

 ticularly in Cook county is recom- 

 mended under which an applicant for a 

 state automobile license would be com- 

 pelled to present a receipt showing pay- 

 ment of personal property taxes on the 



car. \[\/-: >'•"■';'■•■" -/r' - '•:■ ,^- ■ 



It is also recommended that the 57th 

 General Assembly in its first special ses- 

 sion adopt a joint resolution calling 

 upon each taxing body in the state to 

 reduce its expenditures and tax levies 

 to conform to the general reduction in 

 commodity prices and living costs. 



The report concludes with the rec- 

 ommendation that a special committee 

 be appointed to prepare a definite pro- 

 gram looking toward the submission in 

 the next regular session of the next 

 General Assembly of amendments to 

 modernize the revenue provisions of the 

 state constitution. 



The report was signed by the follow- 

 ing: Joseph K. Brittain, chairman; 

 Philip R. Clarke, Omer N. Custer, 

 Samuel Insull, George F. Nixon, Victor 

 A. Olander, Fred W. Sargent, William 

 H. Sexton, Earl C. Smith, S. E. Thoma- 

 son, Ray Wantz and Douglas Suther- 

 land, secretary. 



Singers Represent Illinois 



In National Contest 



The Lenox mixed quartet of Warren 

 county, and the Illini male quartet of 

 Warrensburg, Macon county, winners 

 in their respective divisions at the state 

 contest held during Farm and Home 

 Week at the University of Illinois last 

 winter will represent Illinois in the na- 

 tional A. F. B. F. contest in Chicago, 

 December 7-9. 



The Federation reports that there will 

 be entries from a large number of 

 middle-west states. 



Save Money on Forms 



The Illinois Agricultural Auditing 

 Association has made arrangements with 

 printers and supply houses to purchase 

 all kinds of accounting forms, binders, 

 order books and other standard record 

 equipment for member oil companies at 

 a 20 per cent discount, according to 

 Manager F. E. Ringham. This discount 

 is available only to member co-opera- 

 tives and can be had only when orders 

 are placed through the auditing asso- 

 ciation. :'' ■"~'-' '■v\":'"'^ ';.>"-!■ ■'•'"■''■. 



