The Baltimore County union. [volume] (Towsontown, Md.) 1865-1909, 1880-02-14
THE TAXATION OF MORTGAGES.

This question !. one of grave importance to the
people We, !; seems very little interest is being
unaffected IN il. The liclair m. Of last week
has very sensible editorial On the subject. and
it il entirely in accord with view, We trans
fer it 10 oar columns entire:
II: the hill now before the Legislature 20 tar
mortgages becomes a law il will entail n heavy
burden upon farmers AMI others whose necessities
.etnsiimes compel them g. borrow money upon
mortgage The obje.; Of the bill is to increase the
taxable basis Of the state by bringing within the
scope of taxation the aon.y loaned by capitalists
upon real estate security. This money, ~ long rs
j; remain. uuproluciivc In bank, subject 20 the
order Of i,s depasitor. is not taxed but the mo-.
nent Il !. taken out and used in business Of any
Kind the law claims a snare Of its profits. This
principle j. correct. bat will claia tina; this
money sh"ald pay double tax, and this is pre-
ei.eiy what il must do, IL . tax is levied upon
mortgages.
"The lender always dictates terms to the Dor
rover. and past experience in the taxation Of
mortgages and the workings Of the usury Law. con-
clusiyeiy prove that no law can be framed which
will prevent the lender from exacting from the
borrower an equivalent for such tax in one shape
or another. Take the case Of farmer Of limited
means. with an uneucumbered farm. lie borrows
money TO build new barn or buy cattle or sheep.
giVinsa mortgage upon his farm. The value ofthc
new building he eFerts or the stock purchased is
imme liatsly added 20 his assessment and taxed.
Then IL mortgages are taxed the mortgage will
Inevitably compel him to pay such tax also. Il
. therefore plain that he pays tax upon than
be l. worth. In ether words. the poor man must
pay iaxss upon his own property and upon tho
rich mas investment besides.
"Suppose the mortgage Is for the balance Of
purchase money upon the farm. The borrower
mus; pay taxes upon the entire property. when
only portion of IL is really his owg. Under =
mortgage tax tina; too would be added 20 bis bur
dens AMI he may be compelled 90 pay taxes upon
three tincs as much rs he owns. To make this
palmer Suppose n man buys \ farm for ~ 900,
paying sSco cash and giving mortgage for the
remainder lie Is assessed for 81 900, when be Is
worth only $500. In addition the mort gage CON-
pss him 10 pay the tar upon the $500 mortgage.
Therefore he must pay taxes on 81 500, or three
times much as he il worth. The farm 10 worth
bu; $1,000 and any additional tax, whether levied
upon the pas,essor Of the farm or the man who
aids him In buyins IL, is a tax upon property
which does not exist.
Take anoihe- instance: A and each have
$500. A builds house costing 81 .000. borrowing
s500 from y % complete IL. 4 istaxei on 81 900,
the value Of the Eouse. Suppose u should be
compelled 90 pay tax on the mortgage given by A.
l. Il No; plain that between them they would pay
taIss % sl.Sae, whsa ;ogsthsr they are worth
only SI.Begs
MOT al instance eau he cited where the Dor
ro-sr wiIl not DO compelled 20 pay taxes upon
more than he owns.
As We have said the bill has probably grown
out % desire 10 reach the accumulated money in
tie hands efeapitaiists. Itshoaidb be remembered
that soon passes out offhsir hands and into
any business enterprise. whatever II purchases Is
taxed. and there can BE- no reason for taxing Il
twice. Tax money in the hands Of individuals
and corporations, - other property 10 taxed.
When loaned upon mortgageor otherwise invested
LEI the tax be aba,e. for the reason that wherever
the money goes IL Is taxed II that could be done
!; would cheaper the rate ofinterest and encourage
business snserprise. AZ the same time the State
would get all she u entitled 10 In the shape Of
taxes.
''.f the bill becomes Law 10 will compel the
holdsFs % srgages TO foreelose them, and utterly
ruin hundreds - tnd.sir.ous ard worthy people.
vhiIe the State aad eoanty viii dsSiys no benefit
from the mortgage tau"