Vermont watchman and State journal. [volume] (Montpelier, Vt.) 1836-1883, 1879-01-08
TaxatiOn,

and the inequalities and injustice of existing
methods. No one disputes the general prop
osition that taxation should be equal ;
most persons agree that, at present. it is
unequal; but there is no general consent to
any plan proposed to remedy the inequality.
This disagreement as to remedies arises in
part no doubt from the efforts of every class
of property holders to escape the burden OF
taxation, but still more from the inherent
difficulty in finding any method that is not
open to serious objection. Take, for in
stance, the present alleged double taxation
of mortgaged property, the land paying a
tax on its full value, and the holder of the
mortgage being taxed for its value. This is
not always double taxation, in fact, although
it may be so apparently. If A, who owns a
farm, borrows thousand dollars of B and
with it buys cattle and sheep to stock his
farm, there would be no double taxation un-
less the cattle and sheep were taxed but
under our law they would not be, being
offset against AS debt. If, however, A buys
the farm on credit, then the taxation is
double, as he is taxed for the farm, and B is
taxed for the debt due him. The proposition
to avoid this by allowing AS debt to be
offset against the value of his farm, seems
just, and is as just as to allow any offsetsfor
debts owing; but it would not only be liable
to be used, by the means of fictitious mort
cages, to evade taxes, but would, in case the
debt was owing to persons residing out of
the state, or away from the local jurisdiction,
relieve the land from all taxation and work
great injustice to other tax payers.
In addition to this complaint as to the
double taxation of mortgages, is the very
general one that a great deal OF personal
property escapes taxation; and this COM
plant is undoubtedly well founded. But
every attempt to remedy it fails of accom-
plishing the purpose, as the cunning of the
taxpayer is always more than match for
the cunning of the law-maker. Laws re-
quiring every person to make sworn state
ment of property really accomplish nothing
except to make the burden heavier on those
who are too honest to attempt evasion, and
it does not seem just to make law whose
only effect will be to put premium on dis
honesty.
These difficulties,-and they are sugges-
tive of the many not mentioned-have led
many persons to seriously consider whether
taxation should not be limited to real estate,
or at most, to visible property. 1t has al
ways been true that the larger part of taxa
ton is laid on real estate; and no exemp-
ton is allowed, which is evidence of belief
that, whatever else may be exempt, land
should be taxed. In this state, for the pres
ent year, the valuation of taxable real es-
tate is $40, $40, 1856, and of taxable personal
property is Sl6,S45,123. The polls, reckoned,
on the same basis, at two dollars each, are
$1447S,400. 1t will thus be seen that the
taxable personal property in the state is less
than one-fourth of the real estate, and less
than one-ffth of the real estate and polls,
and, if it should drop out of the grand list
entirely, the taxation of other property
would only be increased one-ffth and while
this is not an argument in favor of making
no attempt to tax personal property, il
shows that such course would, in fact, only
shift in small degree the present burden
of taxation.
One of the obvious objections to an ex
emption of all personal property, is that
there seems no good reason why it should
not be taxed; and another, that the real es
tate owner should not pay all the taxes
But, as to the first objection, it may be said
generally, that it is a serious question
whether greater injustice is not done by the
inequalities resulting from any known
method of taxing it, than would result
from its entire exemption; and, as to the
second objection, it may be answered that
the property that apparently pays taxes
does not always, in fact, pay them. 1t il
true now, for instance, that as land is Ger
tain to be taxed, that fact everywhere enter'
into its price, and the price is therefore
everywhere less than it would be if tn,
same land were exempt from taxation. O
course, as result of this, any additional tax
alton put upon real estate would lessen it
value and so be burden to present holders
but as most persons taxed on personal prop
erty are also holders of real estate, mucl
less injustice would thus be done than a
first appears Besides, every person occu
MAC raol actota opJ tbuc tapont Or QUINN
will be affected by the taxation of sucl
property and while it is not possible +
demonstrate that such taxation would OF
the whole, be more equal than any other, a
it is not possible to show just where tn
burden of any taxation falls, it seems NOR
clearly to reach every one than any othe
kind of taxation.
Governor Talbot, of Massachusetts,, in hi
inaugural address considers some of tn
phases of this subject of taxation, and ret
ognizes its difficulties, in the extract whic
we give below, and with which we close thi
article:
"The pressure of taxation is severely fe
by all classes of property-holders and a
tention has been directed to the existin
system, and especially to the basis of valui
ton for imposing taxes. There are il
stances of injustice in this system, esp
cially in the method of taxing properl
subject to mortgage, which in my judgmel
deserve and require the careful and consi
crate attention of the legislature. Viii
all classes feel the weight to be severe,
will be borne patiently now, as other al
greater burdens have been borne in ii
past, if it is felt to press equally on all,
"The result of the examination of o
system four years since by commission
intelligent and competent gentlemen, al
the judgment of two successive Legislature
appear to have been that the admitted
equality of the present system would be {
aggerated by any change which has yet be
proposed. 1t seems to me quite clear I'll
any relief afforded should directly bene
the owner of the encountered proper
rather than the holder of the loan.
ultimately connected with this questi
is the taxation of savings banks. BY
last annual report these institutions h
mortgages on real estate to the amount