WISCONSIN BLUE BOOK


                            TAXATION
                  Should Be Based on Ability to Pay
   Progressives reaffirm that taxes whether national, state, or local
should be levied according to the fundamental principle of ability to
pay. Not only is this the most fair and equitable rule of taxation, but
it is also the rule which makes for wider distribution of income upon
which recovery from the depression depends and upon which per-
manent prosperity must be built.
   The general property tax from which most of our public revenue
is derived is not in accord with ability to pay. The property tax as
administered is mainly a tax upon real estate. Most real estate is
owned by farmers, home owners and small businessmen. The princi-
pal form of concentrated wealth in the community is in stocks, bonds
and mortgages. The general property tax has been a total failure in
reaching this kind of wealth.

                        Property Tax Relief
   Progressives favor a tax program to lighten the tax burden upon
farms, homes and places of business, and to pay a larger share of
the expenses of governmental services by taxes upon incomes and
inheritances.
  In Wisconsin Progressives are pledged to the two things which the
state can do to reduce local property taxes. Since 1931 due to Pro-
gressive policies no state property tax has been levied. We pledge a
continuation of that policy. The other is to grant large state aids
to the localities. Central units of government-the state and federal
governments-are the only units which can successfully administer
taxes based on ability to pay. On the other hand the local govern-
ments are the ones mainly responsible for the'most important and
the most costly functions of government, namely, education, high-
ways and relief.
  We favor adequate aid for education as a sound program of prop-
erty tax relief. When the schools are supported mainly by the income
tax and roads by the gasoline tax and license fees, very little property
tax problem will remain.

             Oppose Unfair Exemptions and Loopholes
  Progressives are opposed to tax exempt securities and tax exempt
salaries.
  Progressives favor the taxation of dividends.
  Progressives favor a gift tax to prevent evasion of the inheritance
tax.
  The revenues from state and federal income and inheritance taxes
can be increased not only through increasing rates, but also through
the plugging of the loopholes which have been shown to exist in
these taxes. The spectacle of multi-millionaires, such as Morgan, pay-
ing no income taxes while enjoying tremendous cash incomes during
the years of the depression is a disgraceful picture. Progressives


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