The Democratic advocate. [volume] (Westminster, Md.) 1865-1972, 1886-01-16
SATURDAY, JANUARY 16, 1886.
Let Mortgages Be Taxed.

The Governor and Comptroller both having
declared in favor OF taxing mortgages, the
matter will no doubt be presented to the Leg
islature by bill to that end. Then will fol-
low the stale arguments about mortgage tax
being double tax, about taxing evidences
of debt, about driving capital out of the State,
about the mortgagor having to pay the tax,
&c, &c. These are the arguments OF the
wealthy class who desire to escape taxation,
but are not founded upon any solid basis.
Suppose mortgage tax is "double'' tax,
don't the mortgagor pay an undue proportion
now? Suppose farmer has SlO,ooo farm
and places a mortgage for $4,000 upon 1t.
He only owns $1,000 of the farm in fact, yet
he pays tax on the $4,000. He is renter,
at six per cent, from the mortgage, and who
ever heard of renter paying the tax on
farm or insurance on the buildings?
Mortgages are only evidences of debt, say
the opponents of mortgage tax, that may be
swept away by the stroke of apen. They are
evidences of wealth, the rather. They are inter-
est-bearing securities, just the same as notes,
bonds and stocks, which are taxed. They
may be swept away by the stroke of a pen, but
the tax will stop just the same as 1t does on
house that is burned. When the mortgage
gets his money, however, he will invest 1t IN
some other remunerative way. Mortgages are
not fictitious but real wealth. When one is
redeemed the money will speedily go into
another, for there will always be plenty OF
borrowers.
As to driving capital out of the State, there
is no danger of that. Where would it go?
Mortgages are taxed in all contiguous states.
Good investments pay only three and four per
cent. except the stock of national banks, and
but little of that is obtainable.
Mortgages would pay over four per cent in
any county in the state, after the tax is de-
Quoted, and in Carroll would pay about five and
athird. There are supposed to be about $780,
DOC, 900 invested in mortgages in this State.
If that amount were added to the assessable
basis, very considerable reduction in taxa
ton could be made. And if all other prop
erty subject to taxation were listed, as we
suppose it will be under the new assessment,
a still further reduction in the rates Of taxa
ton could be easily effected. Mortgages In
Carroll, then, would have at least five and
half per cent. after taxes were paid.
As to making mortgagors pay the taxes,
that is matter easily fixed. Itcould be made
unlawful for mortgages to ask it and for
mortgagors to contract to pay it, under heavy
penalties. There is no danger that moneyed
men would refuse to loan. Every person
that borrows from them does them favor,
just as every purchaser favors a merchant
when he buys bill of goods. Moneyis no use
unless it can be remuneratively invested, and
those who have surplus are ever anxious to
lend on good security.
Let bill taxing mortgages be brought for
ward in the Legislature and passed. Every
body is required to contribute to the support
of government according to his actual worth
in real and personal property. If mortgages
are not property, what are they? lisa person
holding 100000 in mortgages worth nothing?