Ellsworth American. [volume] (Ellsworth, Me.) 1855-current, 1890-10-09


pose whatever"
The proposed law fixes 4 uniform poll
tax Of 50 90 between the ages Of II and
10; imposes a tax OF 81 90 on male and
$500 on female dogs Ia be applied in pay
mcnt ef damages caused bv dogs TO sheep
takes from selectmcn the power To act rs
assessors in towns Of more than 1000 in
hahitants and grapples with the mortgage
double tax subject, by making the mort
gagged estate taxable 10 mortgagor and
mortgage according to the value Of their
several interests in it and relieves the
mortgage debt from examination alto
gcther. ON the
TAXATION on MORTGAGES
the report SAYS.
We have given considerable study TO
the vexed subject of ,hc taxation OF mort
cages. To tax or not 10 tax them il a
many sided question aud most difficult Of
satisfactory solution. 1t involves the whole
theory aud practice OF general property
taxation. The injustice OF taxing q mort
gage j. that II results in double taxation.
If the real property mortgagrd j. taxed
and the debt secured by it Is taxed also
the mortgagor j. compelled. often, to pay
double tax because the lender
bi lIit HibutN Lnt HibItLaHtt, may
and usually will make his contract to GOV
er the tan he may be obliged to pay oil The
mortgage Indebtedness and the mortsaged
property j. taxable to the nortgagor
This liability to double taxation extends
to many cases where no money passes and
the muri-ared property is the only pro
rerty involved.
TO tax both property and credits. 10
the lender and borrower, is plainly incnr
rect in principle and inequitablc in prac
ticc," saws Amasa Walker, author of
Science of Wealth.
"On the other hand, If mortgages are
not taxed, the money lender escapes tax
alton for the money he has lnancd on
mortgage altogether. How 70 adjust the tax
So that exact justice may he done to both
borrower and lender and to prevent the
falling Of all the taxes upon the borrower
i the problem challenging solution, and
one that must remain without absolute
settlement until the law shall usurp the
power to make ortracts between borrow
er and lender or until all taxation shall
he removed from intangible property and
chooses in action. 1t j. not alone the rea-
tion Of mortgagor and mortgagee that pro
duce> the injustice of double taxation. II
lEheres in the whole system OF taxing
deeds and securities and property for
which the possessor is indebted. IttouCh-
- the interests of all who do business; II
j. peculiar TO no class aud j. grievance
u "Ih A. 'aAailoh HN.Il' IN Inc earlier
GAYS OF our statehood IL was put niue
iei', hut III thc ihulul"fm methodN OF 90
ing business at the present dsy u Is often,
er 1elt, ana Inc eNaelons, >upterlugts ana
frauds praciiced 10 AVOID taxes upon crcd-
-. H.. ,-l.f -
~ ana securities: are 'he chIel cause OF
the cnnrt everywhere made TO ma oet-
ter system. IL j. an almost sgnincant
iact, ana one "hlch speaks lprclhIy OF Inc
lmprachcaollty OF statutory rtllei from
double taxation IN case OF mortgages,
that There mas been so llttIe accomplished
In any state 70 remedy IT. In many States as
in our o"n,the taxpayer l. allowed I" offset
against debts sne him an equal amount OF
his indebtedness, and IN few states he Is
allowed 10 oii,ct his Indebtedness against
his valuation generally. In Massachusetts
and Mary and the legislatures have under
taken TO deal with the subject OF mort
gage taxation and in the latter State mort
cages are not taxed. In Massachusetts,
the mor'gagee Is taxed as JOINT owner
with the inorfgagor in the iand mortsaSeh.
to the extent OF his interest. ms meth
81 was adopted under state law enacted
in lsol and has proved reasonably salts
factory in practice 1he mortgage Is tax
ed tc him a. real estate 10 the amount oi
the debt due him upon 1t. and the mo'tsa-
gor Is, to that extent, relieved from taX'
a. he Is taxed only for so much OF the val
cass ~ rho d,ht Tins mating hnt one tax
in effect, upon the whole transaction, the
note being free OF tax. Thus the lender
Is taxed for the money loaned IN the form
OF a lax on MS interest IN the morl2aeed
property and the borrower Is renewed TO
that extent 1t Is easy TO see now, under
TINS system, property escapes taxation ID
theory at least, Tor II The lender retained
Ms 'nones anu VI. "oi w o"oi n.s am -. ~.
would the money be found for taxation?
1t is also apparent that the lenders facili-
ties for shifting the burden of the tax he
is liable for to the shoulders of his debtor
by extra charges still remain. On the
whole, however, we conclude that the
weight of the argument is in favor Of
some such method as Massachusetts has
chosen, as compared with our own, and
we have incorporated into our proposed
law provisions of like character We
are unable to devise any method that
promises better results"
The report deals at length with the list