, 1879-03-10
TAXATION AND REVENUE.

We priutedlast Saturday tho article relating
to taxation and revenue proposed as part Of
the now Constitution of California. 1t must
attract attention because Of tho special Of.
forts made in tho wny Of double tnxation.
It seems to be modelled something nftor tho
Royonue Inv Of this State, which is, in oil
that departs from straightforward, legitimate
taxation, confessed failure. It will DO Seen,
however, TINT tho California Convention
eventually educated itself up to q rooogni-
ton of tho salf-eyilent fact thnt to tux prop
erty, and to tax the mortgages thereon, is
double taxation SO tho Convention proposes
to ta1 tho property in tho namo Of tho
owner, dodncting from It's valuation any
debt occurred thereon by trust~daed or
mortgage, and tho value Of suoh mortgage
or security shall TO ta1ad to tho owner thoro-
Of. Tho means provided for the collection
Of tho taxntion on tho mortgage or security
is to doclaro that, when auoh ta1oa nro pall
on tho security by the debtor, such payment
shall operate ns pnymont to TINT exsont of
tho debt. All contracts by which debtor
Is obligated to pay my tax on money loaned
on mortgage arc declared to DO illegal and
void.
Tho Legislature Of Illinois has now in sos.
aion Joint Committee to prepare revised
revenue codo for tho State, It Is not proba-
bio TINT tho Committee will ever agreo upon
such oodo, because Of tho wide differences
Of opinion upon tho fundamental principles Of
taxation md tho means Of applying them 80
as to collect the largest reyonuo at tho least
cost to those who Pay the tax.
The Constitution Of tho State rcquiros that
au property, Of whatoyor kind, shall paya tax
according to its valuation. If a mortgage 10
assessablo property, ma well aa tho laufl on
which 1t IL O lien, then both mortgage and
land must DO taxed, aud ti.is is the theory Of
tho Illinois Revenue law to which majority
Of the Legislature has always persistontly
and blindly ndhcrcd. II tho mortgage bo
not property in tho sense of being taxable,
then, under our Constitution, tho property
on which 1t ia q lien romains Us taxable as 1t
no such lien exlsted. Tho Illinois Cou-
sutution deals with property, and not
with individuals or interests; whore-
ever 1t finds property 1t taxes it,
leaving to all persons Interested in it to sot-
tie tho payment among themselves. Any
departure from this principle must load to
endlosa confusion, and compel tho State to
bo a litigant iu eyory case of divided or dis
pntod ownership aud tit!o. Tho Committee
may assume as M unqueationable fact, yeEi-
fed by tho unbroken experience of every
Government Of overy kind, that any tax im-
poaed upon crodits, whether In tho shape Of
loans, mortgages, or othor evidences OF
dobt, must inevitably, to tho oxtent that it is
paid Mt all, 10 paid by tho lobtor,-tho bor-
rowor. The effort by the California Con.
vention to declare such payments, and all
contracts for such payments, illegal and void,
will not change tho result in tue least. Tho
man who borrows money must pay-other.
wise ha could nover borrow-all dues, taxes,
and liabilities OF whateyer form TINT III any,
and OF tho stipulated interest. All
efforts Of law and constitution, let
them take what form they may, to collect
/ taxes from creditors On money loaned, cat
| have no othor result than to add that mucl
additional burden to tho borrower or debtor
When it reaches tho creditor, then tue mean.
Of borrowing must cease. uule&s tho Com
mittee OF the Illinois Legislature arc pro,
pared to recognize this fact, and to trame
thoir Revenue law on that basis, 1t will bt
| perhaps wasto Of time to attempt TO patct
up cola 10 accomplish an impossiblllty
The experience Of this State during the las
eight years in The matter Of taxing orodits
| mud Of Yarious other forms of double taxa