The Democratic advocate. [volume] (Westminster, Md.) 1865-1972, 1886-02-06
Taxation of Mortgages.

Our esteemed contemporary tue Daitihioic
Sun, on Tuesday devoted over a half column
to the question of taxation of mortgages, but
it did not give any arguments to sustain its
previously expressed opinions regarding driv-
ing capital out of the state, &C., &c. 1t COM
bats the idea advanced by the ADVOCATE that
the mortgagor now pays on what he does not
own, and succeeds in showing distinction
without real difference. 1t does not refer to
our showing of the great plethora of money;
does not refer to the fact that mortgages arc
taxed in various other states; that money is
offering at four and five per cent. on country
as well as city property; that time loans are
only p to 81 per cent. and call loans as low
as u; that the best securities bear but from
8 to 4 per cent, and that they are at pre-
MUM.
Now we would like to ask the Sun where
is the equity in case like this: A has a
$40, 900 farm, and B has $40, OO0in mortgages.
A pays his taxes and contributes to the sup
port of government according to his actual
worth. as the constitution demands. He
labors and his family labors, yet at the end OF
the year he is fortunate if he can realize six
per cent. on his investment. B does moth
ing, and his income is 81 200. He uses the
roads, and pays nothing to maintain them;
his children go to the public schools, and he
pays nothing to support them; he has business
in court, and contributes nothing toward the
expenses; he has the protection afforded by
the state, and contributes nothing for that
protection. A pays for the privileges and
protection of B. If this is not double taxa
ton, what is it?
Over in Pennsylvania not only are mort
cages taxed, but the Objects to tax the wealth
and tighten the burdens of the poor. Here
we tax poverty and exempt wealth. In re-
gard to the tax law in Pennsylvania, we ap-
pend the following from the Philadelphia
Ledger:
Several months ago, and repeatedly since,
the Ledger, in discussing the revenue act OF
June 80, 1885, called attention to number
of questions arising in its administration, and
suggested that the Revenue Commissioners of
the state should consider such questions, and
publish their Interpretation of the law for the
guidance of the assessors and of the taxpayers
required to make returns. The Revenue
Commissioners, comprising Secretary ct the
Commonwealth w. S. Stenger, State Treas
urer w. Livsey and Auditor General Jerome
B. Niles, held meeting on January Il, and,
apparently having in view some OF the obscure
points presented by the Ledger as demanding
explanation, agreed upon and issued the fol-
lowing answers to some of the specific ques-
tons:
Are bank deposits not bearing interest but
subject to check on sight, and moneyin hand
not invested, included in the item, "All other
moneyed capitalT' No.
Is a dover on real estate taxable? No.
Are deposits bearing interest in national
banks, savings banks and private banks tax
able? Yes.
Are musical instruments, pictures, books,
etc., to be regarded as household furniture
No.
Are mortgages owned by beneficial associa-
tons taxable? Yes.
Are mortgages, judgments, bonds, notes,
etc., not bearing interest, taxable? Yes.
Are bonds issued by school districts taxa
Bile in the hands of the owners? Yes.
Is the stock of corporations paying tax on
capital stock to the state through the compa-
MES taxable in the hands of the owners
Yes.
Is the stock of the New York Central Rail
road and other foreign corporations owned in
this state taxable in the hands of the owners
Yes.
Can taxable person deduct debts from
the amount of his moneyed investments, and
only pay tax on the net sum thus shown
No.
If A borrows money from B on note and
lends it to C on note, are both notes taxa
BILE? Yes.
As the Legislature this winter will have to
provide for a new assessment, it would be
well for the members to take look at the
Pennsylvania act. 1t may serve to guide
them in framing law for Maryland, whereby
the wealth may be reached, and the burdens
&C IL, loss fo,.tunn4n he Erhtened