Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1888-10-19
DOUBLE TAXATION.



resulted in a decline in the market value
of farm lands in Vermont, the intelligent
observer cannot fail to recognize the fact
that unwise and unjust taxation has had
an unfavorable influence in this direction.
That actual individual wealth should be
the criterion upon which to base taxation
and that taxation should follow title, in
assessments of taxes upon real estate are
aXioms which a very low order of intellect
may comprehend, but which our legisla-
tors have 50 far practically ignored in
this matter. Let us examine in detail the
enactments ROW upon our statute books
in relation to taxation, and consider the
various phases which they practically
present.
LIST. The present law leves taxes upon
debts contracted in the purchase of real
estate
I'd. 1t levies taxes upon entire mort
gagged estates, and also upon portion of
the capital invested in these estates.
Sd. 1t taxes prospective, as well as ac-
CURED titles.
4th. 1t swells the grand list of the
State by assessment upon the indebted
ness of its people, and thus practically
proclaims to the world, that the State
possesses taxable wealth and resources
which do not exist
9TH. 1t is based upon the supposition
that the more hopeless the Indebtedness
OF the people, the greater the taxable
wealth of the State.
9th. 1t practically imposes a penalty
upon every transfer of real estate, where
mortgages are given.
18th. 1t discriminates against the pro-
ducers of new wealth, against those
who would purchase farms and work
shops and pay for them out of the net
profits of the business in which they are
to be employed.
sth. 1t discriminates against the en-
ployers of hired capital, and by its unjust
provisions, so handicaps them that they
cannot afford to pay rates of interest
which under just and equitable conditions
they might pay, and thus capital is driven
from the State which would otherwise be
sources.
9th. 1t taxes both the poverty and en-
terprise of our young men who are strug-
ling to acquire titles to homes, farms or
workshops in Vermont.
10th. The exemption Of personal prop
erty ls very natural outgrowth of this
scheme of taxation, which in itself, is
both legal absurdity and moral wrong,
an Legitimate child Of an illegitimate
parentsge.
These are the various phases which this
Ubiquitous legislation presents when
may be considered by some q too severe
arrangement of its faults. But what are
the facts in relation to its practical opera
ton, both in its morals and business as
pects
Legislation which unjustly discrimi-
mates against the purchasers of any
species of property cannot fail to affect
more or less seriously the market value of
that property. Let us illustrate the prac-
tical operation OF this legislation in its re-
lation to real estate values.
We will suppose that A owns farm, the
appraised value of which, for purposes of
taxation, is $4,000. He is willing to dis
pose of it at that price, and BIS son, who
has more enterprise than ready money,
desires to purchase it. He is shrewd and
Yankee like, he calculates his chances for
success. He finds that after paying for
the necessary outfit of tools, seed, grain
and other farm and household supplies,
he will have but $1,000 left to invest in the
farm itself If he makes the purchase he
will, in addition to his interest, ordinary
expenses and risks, be required to pay
taxes on farm representing $1,000
while he has but $1,000 invested. In
other words, the laws of the State Will
compel him to pay both interest and taxes
upon his 5000 OF indebtedness.
He finds also that \ will be taxed on a
list rvprescuting tie money and notes
whicn ne :" III give IN the trade that tau
anon Will, II consequence Of the trans
fer, ne increased from list represent
Ing $1,000 to one representing $1,000
that the aggregate list of the State will
be swelled so as to represent gain of
$4,000, in property value, while there will
be no increase in value
Inc State will thus practically impose a
penalty upon him amounting to the
5000 debt until paid. This because of
crop failures, low markets, etc, may
amount to hundreds of dollars aud conse-
quent financial ruin. These corsidera-
tons, with other real and fancied objec-
tons TO locating in Vermont, lead him to
accept The advice of Horace Greeley,
which was go West, young man, 20
West" and he goes
This is Vermont law and this its prAc- |
teal effect. Is it The measure also of
Vermont justice, integrity and statesman
ship
1t may be said that the case supposed is
an extreme one. True But it fairly |
presents the character of the law in ques- |
ton. 1t illustrates Its practical bearing !
upon every transfer of real estate where a |
mortgage is given.
1t may be argued that the taxes imposed |
are 80 slight that taxation has practically |
but little effect upon the ultimate results
of business. But be it remembered that
the ability to pay is determined, not by
the gross but by the net receipts of bust |
ness where, as at present, these are small,
taxation, which with opposite conditions
of markets, etc, might be considered in
significant, may under present conditions
be sufficient to change the balance from
profit TO loss. from success to ruin.
l have known scores of cases where
this unjust taxation has taken thousands
II dollars from individual farmers who
we're struggling to pay for farms which
hey had purchased while their more
wealthy neghbors, who were ont of debt,
we're free from any such unjust imposi-
ions.
The State has no moral right to levy
axes upon the Indebtedness OF its people
Neither has it a moral or constitutional
light to tax prospective titles.
Our present grand list is no index to the
financial condition or taxable wealth OF
he State.
We have no such index under existing
avs. BY the legal machinery now in
orce, every advance in mortgaged ins
lebtedness Is followed by an advance IN
he aggregate grand list of the State.
What boundless field for the develop
nent of our taxable resources is thus
opened before us Ii we only become :
,oor enough, our plethoric grand list may