The Evansville daily journal. [volume] (Evansville, Ia. [i.e. Ind.]) 1848-1862, 1857-01-28
Taxlng Credit.


In the Legislature proposition was made
to deduct the personal Indebtedness from the
amount of property liable to assessment, and
it was opposed, on the ground "that credit
1Uas capital, and like all other kinds Of CAPT
tai, it ought to be taxed" We hear many
strange doctrines promulgated under the the
cries of modern Democracy, some of which
must appear like astounding discoveries to
old political economists. Under the opera
ton of our injudicious and unequal tax laws,
property is, by their practical operation, taxed
two and three times over. We see instances
of it daily. A man buys farm, or house.
and gives his notes for it to the vendor. The
property is taxed in the name of the vendee,
and the notes which arc : simple representa-
tive of the property, are taxed in the name
of the grantor. In this instance, the property
is doubly taxed, both in substance and its
shadow, the notes. But suppose the first
grantee-as is very common in real estate OPP
erations-sells it by bond fer deed to third
party and receive his notes for it. and the
third party transfer his bond to a fourth, and
receive his notes; ard the fourth to fifth, -
and such transactions are common in some
fourishing townsville same property would
be taxed by the operation Of the law, in diff
ferent forms, four or five times over. And the
same is seen in the transfers Of other property
in all the operations of business.
1t is proper that all property within the
State, should pay tax to support Of the gov
eminent that protects it, be it owned where il
maybe its indebtedness what it may-but
to make the indebtedness of our citizen:
source Of revenue; to tax men for what they
owe is one ofthis most preposterous proposition
that was ever propounded in legislature
We have heard Of fraudulent bankrupts Giving
on what they owed" but for State to rails
it's revenues or the debts of its citizens is !;
now theory ofpublic economics. -.,..4 .s-.t,.-
The basis of credit is moral character; it,
foundations are integrity, virtue, temperance
industry, frugality and capacity. Did tn
world ever hear o. State making these tn
subject Of taxation? are these proper subject
on which a State is to levy the burthens Q
her support? In days of yore, the virtues q
its citizens were the object of the bounties q
the State. Credit is the great rival of capital
founded upon character and moral worth, it i
the only fortune and resource of the poor man
with which he can contend with wealth; it i
the mighty leveler in the struggle forsocial dis
tinction--itis the great democratic element G
trade and commerce; it is a moral power
moral capital, which thought can be counte
in dollars and cents, is not a tangible sub
stance; and it is a strange democratic princi
pie that would subject it to taxation and fee
the State upon its hard earnings and discouI
age that which ought to be the highest glor
of people. Our Legislature is preparin
laws to allow capital to exact its ten per cen
from the intellectual and productive capacitie
of the people, and then proposes to tax tn
thing borrowed and the borrower for the sam
property. This is a new mode Of promotin
trade and industry in the State, and preserV
ing the equality Of classes.