The Democratic advocate. [volume] (Westminster, Md.) 1865-1972, 1882-02-11

Again: Y our FARMS valued at $4,000 You,
borrow giving u mortgage on your tarml So
600. and use it to improve the farm. tits then
worth $4,000, and you are taxed, and pay
taxes on a valuation of 5000. | hold your
note, secured bv a mortgage. for 5000, and
nav taxes on said note. Is it not self evident
that the 5000 of value has paid double tax.
That one of us ought to pay the tax | admit,
but | say it is you that should pay, for l pay
the taxes on the property | enjoy by means
of nv interest received ofyou. 4ou should pay
the tax on the value you have the advantages
of enjoying, which must tas far rs the 5000
is concerned be greater then the interest you
pay me or you would not have borrowed in
clude the s., 200. To tax mortgage or any
credit or debt. or evidence of debt, Is there
fore double taxation.
To say that law may be passed TO tax
mortgages and to make the lands pay the tax
is almost childish. In innumerable ways might
such a law be evaded, the brokers fees or the
conveyancers fees, might include the tax,
special agreements might be made between
the parties, the lender might enter into an
agreement for conditional purchase. or an
out and ont sale be made, the borrower rent
ing and the rent including all interest, taxes,
ct cetera and an agreement for resale at a
future day entered into. | admit that in the
lapse of years many of the evasionS would be
set aside by thecourts, but where one Is wiped
out score would take its place
But all credits, &c, except mortgages, are
taxed, and it is said that it would be radi
cal aud revolutionary policy to HOr exempt
them, and that such being the case it is but
right to tax mortgages. &c.
have shown that a taxation Of a credit, or
the creation of n credit, does not make said
credit value property and that value
property ultimately pays the tax. But It is
said, rich man may borrow on his own note
of hand, that he adds no real value lin the
eredit-sensel 10 his note by giving a mortgage
TO secure it. that he may borrow a half million
on lot Of ground not worth 1000, and so
exempt all his notes from taxation and thus
add the rate of the tax ON private securities
to the value of his paper, aud So deprive the
people of the taxes on the value of the prop
erty so loaned minus the 81 900, the value OF
the lot because of the non taxable nature Of
the security, the lender is willing aud glad 20
loan az less then the regular rates, this Is, !
admit, very strong point and for that reason.
! mention Il here, but if We are To act eanSti-
mtionaly We viii exempt all. or not tax
credits. but il We rs a state. tax credits. we
NAV do so, but il Is not necessary TO tax mort
cages to remedy the evil above noticed. lie,
the legislature enact law requiring all mort
cages or mortgage SeeaEities. to pay q tax, Is
other private securities. except those mort
cages. &c. that are Hens on actual property
valued at a sum equal. at least, to al the hens
upon il including all mortgages. Ihat Is 70
say. the value OF the property should he a.
certained and the amounts OF all mortgages
aud other liens ON said property asceriained.
and those mertgages mortgage securities IN
excess Of sid value TO he taxed private
security. for it j. nOl security made safe. By
a mortgage GA a specified piece Of property
Il said property i otherwise tof course exist
ING before said mortgage was giyenI entirely
covered with licns. BY some ssleb law tbs
worst feature Of tae exemption might bc r..
moved. therefore ii Is no, necessary 20 taN
lnortrages. y. h, :