The Bennington banner. [volume] (Bennington, Vt.) 1858-1894, 1888-10-11
TAXATION IN VERMONT.


gun and az usual the debators rang
all the way from the extreme linguistic
rial, iron-clad oath advocate to the di
ciple of Henry George. In the kutlan
Herald the Hon. +, ID. Douglass Is run
ming a series of articles on vernon
Farming" one or two of which we hav
copied into the BANNER. His mo. "
is entitled: Farming i'll Vermont.
Double Taxation and Its Relation t
Land Values" Proper Principles o
Which to Base All Taxation 'EN
emption of Private Property Mora
and Legal Absurdity.
He saws: The fundamental principle
upon which taxation should be base
are obvious, and rest upon two simpl
propositions.
First-Indiyidual life, rights an
property must be protected, and socla
and business intercourse regulated b,
concerted action and organized etor
on the part of the masses requiring sucl
protection and aid.
Second-The expenses incurred b,
such organization should be paid by
uniform taxation, based upon the en-
tire property of every individual EN-
braced in the organization, togethe
with such taxes as may justly be LEVIED
upon the persons OF those receiving I'M
b. nefits of citizenship. :,
l shall in this connection speak only
of those legal enac' ments upon ouI
statute books, which are a manifest VIC
lation of these fundamental principles
that is, legislation which results IN so
called double taxation This tern
but very imperfecty expresses its true
character. 1t is really relic OF par
barism, handed down from remote an
tiquity based upon barbarous theories
and ruiDous in its practical results;
That actual individual wealth should
he the criterion upon which to base tax
alton and that taxation should follow
title, in assessments of taXes'upon real
estate are aXioms which a very low or
der of intellect may comprehend, but
which our Legislators have 30 far practl
cally ignored in this matter. Let us
examine in detail the enactments now
upon our statute books in relation to
taxation, and consider the various
phases which they practically present.
1st.-The present law levies taxes up
on debts contracted in the purchase OF
real estate.
Cd. 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
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 supp1sition
that the more hopeless the Indebtedness
of the people, the greater the taxable
wealth of the State,
9th. 1t practically imposes penalty
upon every transfer of real estate, where
mortgages are given.
9TH. 1t Discriminate 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 I'M
lust provisions. 30 handicaps them that
they cannot afford to pay rates of inter
est which under just and equitable con
ditions they might pay, and thus CAPT
tai is driven from the State, which
would otherwise be employed in the de-
velopment of its resources.
9th. II taxes both the poverty and
enterprise of our young men who are
to acquire titles TO homes,
farms or workshops in Vermont.
10TH The exemption of personal
property is very natural outgrowth of
this scheme of taxation, which in itself
is both legal absurdity and moral
wrong. an illegitimate child of an illeg-
itimate parenlaRe.
Legislation which unjustly discrimi-
mates against the purchasers of any spe.
cies of property cannot fail to affect
more or less seriously the market value
of that property. LIT US illustrate the
practical operation of this legislation in
It's relation to real estate values.
We will suppose that A owns a farm,
the appraised value of which, for puT-
poses Of taxation, is $4,000. He is will
ing TO dispose of it at that price, and BIS
son, who has more enterprise than
ready money, desires TO purchase it.
ae is shrewd and Yankee-like, he cal.
culates his chances for success He
finds that after paying for the necessa-
nv outfit of tools, seed, grain and other
farm and household supplies, he will
have but $1,000 to invest in the farm it.
self. II be makes the purchase he will,
In addition to his interest, ordinary ex-
psnses and risks, be required to pay
taxes on a farm representing $4,000
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 $4,000 of Indebtedness.
He finds also that A wi be taxed on a
list representing the money and notes
which he will give in the trade; that
taxation will, in consequence of the
transfer. Re increased from list repre-.
sen ing $4,000 to one representing ST.
900; that the aggregate lis of the Stats
will be swelled so as to represent gain
of $1,000, in property value, while there
will be no increase IN value.
The State will thus practically impose
a penalty upon him amounting t. tbs
aggregate annual taxation upon bis
$4,000 debt until paid. This because OIL
crop failures, low markets, etc., may
amount to hundreds Of dollars and con
seouent financial ruin. These consider
atoms, with other real and fancied ob
iections to locating in Vermont, leaC
him to accept the advice of Horace
Greedy, which was go West, younl
man, 20 West, +" and he goes.
This is Vermont law and this is IT.
practical effect.
III purchase real estate and pay onl,
a portion of the purchase money down
giving a mortgage deed for the balance
/ become Invested with only that por
ton OF the title represented by the pay
ment which have made. The balanc
of the title remains with the forme
owner, who should manifestly pay sucI
portion of the taxes as the unpaid note
described in said mortgage bear to tn
assessors valuation Of the property o
which he holds joint title.
To illustrate, we will suppose that /
purchases OF B farm worth $4,000 an,
paws but $1,000 down. B, as usual il
such cases, gives A deed conditione,
upon the payment of the balance
When A pays said balance he become
invested with the full title. A at tn
same time gives B deed, also ccnd
toned upon the payment of the unpai
balance. II A fails to pay said balance
the property revsrts to B, and he BIZ
comes re-invested with complete title
While the balance remains unpaid tn
title manifestly rests between them
Neither alone holds, or can give, a pei
feet title. The question of title in sue
cases, as l have said, is question O
fact. 1t requires no judicial lore O
legal acumen 10 trace its ownership
The amt unt OF the unpaid notes held b
the mortgage at any gwen time wi
determine the extent of HIS title. an