Vermont watchman and State journal. [volume] (Montpelier, Vt.) 1836-1883, 1882-11-01

When the Union was In greatest peril and our
statesmen were scrutinizing every possible source
OF revenue, with only hope OF averting national
bankruptcy, proposition TO tax life Insurance
was reported 10 the United States senate Mr.
John Sherman moved to strike out all that re-
lated to such companies Mr. Charles Sumner
earnestly supported the motion, urging that
what man pays for his Insurance is tax, and
now y is proposed to put a tax on a tax" After
full discussion the measure was abandoned, and
In the following year. 1868, the dividends OF
return.premlums Of life insurance companies
were expressly exempted even from the tax on
incomes, which was collected out Of every other
form OF dividends or profits.
Were the state OF New York threatened with
bankruptcy and its homes with devastation by an
invader, we could understand how the question of
similar tax might deserve discussion here With
Its treasury full, its people prosperous with laws
Just passed which insure great reduction of the
general rate OF taxation within year, II Is hard
TO see why such bill should be suggested. But
the bill reported yesterday TO the legislature az
the work Of the tax commission is Of different
character II the income tax Of 1868 were col
lected this year from the dividends of our life
insurance companies, II would amount to $685.
300; this bill, II enacted, will take from the same
interest much more than three times as much.
Congress refused to draw, for nation struggling
Tor life three per cent from these additions to the
savings which foresight had provided against the
pauperlsm which so often follows bereavement
our legislature Is asked to take out Of them more
than eleven per cent for a state whose wealth Is
boundless and Its treasury OVERLOOKING
Let not this burden be hastily imposed on such
a business II there Is any task before our law
makers which demands research and elaboration,
1t IL the discovery and adjustment OF sources OF
revenue, But especially Is caution necessary,
when 1t is proposed to tax heavily a business
which, by the teachings Of economists and the
general consent Of civilized nations, has been
thought worthy of special exemption, and which
IL has been the policy Of this state, for more than
. generation, to keep free from such burdens
These considerations apply to every measure
which attacks the funds or credit of the life in
surance societies. But the pending bill has fea
lures which must give pause to the most head
frightful extent Of the levy proposed upon our
companies stands in strange contrast to the abso-
Lutte freedom from taxation which 1t grants to all
competing companies OF other states. Every
dollar OF the tax will be premium offered to our
citizens to go out OF New York for their insurance
Every line OF the bill will be notice to the world
that If the great financial successes in this bust
ness which have distinguished this city and state
and done 30 much to build up their prosperity
are to be continued and repeated hereafter, II
must be on other soil and among wiser COM
munities than ours.
1t ia at least fair to ask the legislature to be
honest. There Is but one source from which the
revenue this tax is to yield can possibly be drawn
the death payments upon policies Every
dollar of the surplus or " surrenders taxed
goes into this fund Now, the companies on
which the tax is proposed paid in death claims to
citizens OF New York in 1880 about Sc, 900, 600.
The tax, II enacted, will therefore diminish these
payments at least ten per cent. Let us be fair
and direct, and not evade the responsibility but
II the dead, who are not represented, must be
singled out for an exceptionally heavy excise,
Jay 1t on the policies when paid. Take it from
| the money as it is distributed to the widow and
the orphan. 1t will be simpler, and the same re
suit will be attained without deception or dis
| guise.-Nen York Tribune, Nay 81, 1881.