Page Four 



THE I. A. A. RECORD 



March, 1932 



and made its report late in 

 October to the General 

 Conference. Included in this 

 report was a recommenda- 

 tion for a State Income Tax 

 and the use of all revenue 

 derived therefrom to be 

 used in such manner as 

 would reduce, dollar for dol- 

 lar, taxes now levied upon 

 and collected from prop- 

 erty. 



In every particular, this 

 |)roposed income tax em- 

 bodied principles supported 

 by the IlUnois Agricultural 

 Association in its previous 

 efforts. "When the proposals 

 of the Governor's Tax Con- 

 ference were presented to 

 the Special Session of the 

 Illinois General Assembly, 

 which was called by the 

 Governor early in Novem- 

 ber, the President of the 

 Illinois Agricultural Asso- 

 ciation was selected to pre- 

 sent that phase of the con- 

 ference program having to 

 do with permanent tax re- 

 lief, and particularly to ex- 

 plain in detail the proposed 

 State Income Tax. The fact 

 that he had been Chairman 

 of the Sub-Committee of 

 the Governor's Tax Con- 

 ference on "New Sources of 

 Revenue and Permanent Tax 



Relief," and the further fact that infor- Three per cent (3%) from 

 mation upon which this legislation was Four per cent (4%) from.. 

 founded had been compiled by the De- Five per cent (5%) from 



JUST AFTER THE PASSAGE OP THE STATE INCOME 



TAX IN THE HOUSE 



Left to rlgrhtt Rep. Homer J. TIce, who led flgrht for bill In 



Hoaae; Earl C. Smith* and Senator Simon E. Lantc, sponsor 



of measure vrhlch bears his name. 



School Fund of the State 

 Treasury. Its distribution is 

 to be made in the follow- 

 ing manner: 



Replacement Feature 



Any moneys appropriated 

 by the General Assembly for 

 the State Distributive School 

 Fund are to be taken from 

 this newly created Public - 

 School Fund instead of be- 

 ing levied upon the property 

 of the state as has been done 

 in former years. This will 

 immediately remove from 

 property approximately one- 

 third (Ys) of the require- 

 m e n t s of the state levy 

 during recent years. The 

 balance remaining in the 

 Public School Fund is to 

 be divided between Cook 

 County and the balance of 

 the state in proportion to 

 the assessed valuation of 

 property. 



The down-state's portion 

 is to be divided among the 

 various school districts of 

 the state outside of Cook 

 County in the proportion 

 that the average annual ex- 

 penditures by each district 

 bear to the total average 

 annual expenditures for the 

 educational fund of the ele- 

 mentary schools during the 

 4,000 to 9,000 preceding four (4) years. Unless other- 

 9,000 to 16,000 wise provided by special referendum of 

 16,000 to 25,000 the voters of any school district, the 



partment of Taxation and Statistics of Six per cent (6%) on all income above 25,000 average annual levy of the preceding 



the I. A. A. throughout several years, 

 resulted in placing upon the lUinois 

 Agricultural Association a large part of 

 the responsibility for actively sponsor- 

 ing this proposal during its considera- 

 tion by the Special Session of the Gen- 

 eral Assembly. 



Lead Fight for BiU 



Senator Simon E. Lantz and Repre 



P T Off ^°^'^ ^^^ years becomes the maximum 

 *^ ^ amount that can be levied upon prop- 

 The computed income tax may be ^f^^ ^o** ^^^ educational fund of each 

 reduced by any property taxes paid in elementary school. ; ^ 

 the proportion that reported income de- One of the companion bills also pro- 

 rived from tax-paying property bears to vides that after receiving the levy from 

 the total reported income. In other the local school board or board of edu- 

 words, if one-half ( /4 ) of any person's cation, the County Clerk shall reduce 

 net income is derived from tax-paying the amount of such proposed levy by 

 sentative Homer J. Tice led the fight property, he is permitted to reduce his an amount equal to the sum received 

 on the floor of their respective houses, computed income tax one-half (J/^). If by such district from the Public School 

 Final passage was secured, with the his entire net income is derived from fund in the preceding twelve months, 

 legislation in substantially the form it tax-paying property, there will be no During recent years, the state has 

 was presented to the General Assembly, tax on his income. been levying from ten to ten and one- 

 Minor amendments were adopted in It is also provided that any person half million dollars ($10,500,000) per 

 both Senate and House, which will to occupying his or her own residence as year for the State Distributive School 

 some degree reduce the revenue; but a home may deduct from the computed Fund. The local school boards and 

 that part of the proposal which had income tax the full amount of general boards of education have been levying 

 to do with the use of the revenue re- taxes paid on such residence property approximately eighty million dollars 

 mained in its original form. up to but not in excess of $100. Any ($80,000,000) per year for educational 

 The Income Tax Bill provides for person either not entitled to or not purposes in the elementary schools. It 

 exemptions of $1,000, $2, J 00 and $300 claiming an offset may deduct any is believed that this newly enacted legis- 

 respectively for single persons, married general taxes paid on property from lation will provided from twenty-five 

 couples and dependents. Rates after ex- his gross income in computing the net (2 5) to thirty (30) million dollars per 

 emptions are: income. year in years such as 1931, and from 



One per cent (1%) on the first $1,000 All moneys Collected under this legis- forty to forty-five million dollars per 



Two per cent (2%) from. . .$1,000 to $4,000 lation are to be placed in the Public year in years of greater prosperity. 



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