The Democratic advocate. [volume] (Westminster, Md.) 1865-1972, 1891-05-09
The Folly of Double Taxation


fOT the DeluOtIhtS -AufOSoeS+
Under the above caption the Baltimore
Sun, of May I'd, in an article very truly re;
marks: 1.-The theory of all just and equal
taxation is that every man who enjoys the
benefits and protection of government should
contribute his fair proportion towards its
support" In the same article the Sun further
asserts-.'The taxation ofmortgages is double
taxation in its worst form, &c. We admit
that under the old law, when the land as well
as the mortgage upon 1t was taxed, 1t was IN
that case double tax, wherein the mortgagor
was compelled to pay taxes upon what he was
worth and also upon his debts. In that par
tcular the law should have been amended
and not absolutely repealed, under the old
cry that is always raised by capitalists when
ever a change in the assessment laws are
spoken of or likely to be consumated, that 1t
is a double tax This same cry has success
fully kept mortgages exempt from taxation
since, as though it were impossible to pass
law to tax every species Of property accord
ing to lis own value without causing double
taxation upon any.
The same article referred to quotes the 10th
Article of the Declaration of Rights in Mary
land, that every person shall contribute ac'
cording to his actual worth. We submit,
therefore, that in the absence of proper law
taxing mortgages or any other species or evil
dences ofweath according to their true value,
there can be no Just and equal taxation as
comprehended in the said 18th Article Of the
Declaration of Rights
For instance, as the law now stands, y
buys a farm for $4,000, for which he pays
down $1,000 and borrows from b $1,000
more, and gives mortgage as security upon
the farm. When you assess the farm and
cause A to pay taxes on the whole $4,000
-. III, H.. my n SAID
farm, of So 900 is that equitable and just
taxation? Again, should B own mortgages
of like amount on three other farms, making
in all $50, 900, and pays not one cent taxes to
the government, that protects him while the
holders of said farms each pay him b, SIX
per cent interest and all the taxes on BIS
investments as well as their own. We ask IN.
the name of justice and equity is that s..
IS and the others Just proportion OF taxes
according to what each is worth Or is it
not u species OF class legislation?
But here comes the next assertion used by
the parties opposed to equal taxation as an
argument against the taxing OF mortgages,
that the capitalist is not compelled to loan on
mortgage. Well, a man with plenty of money
might not be compelled to do any thing but
TO spend his money as he sees proper. But
money is IL commodity upon the market, and
is subject to the rule of supply and demand
as ali other commerce, and to be of any
utility must seek investment somewhere, and
will, without any regard to taxation, seek the
best investment it can get. We, therefore,
can see no good reason why mortgages as
well as all other bends or evidences ofweaith
should not be taxed according to the wealth
they represent, and in such manner as not
to be a double tax on either land or mortgage.
For instance take the case of A and b again.
A buys the $4,000 farm, puts his $1,000 into
it, and B puts $1,000 into it, douby secured
by mortgage lien at six per cent, interest,
more or less as the case may be. Now there
is $1,000 worth of property to be assessed
and the taxes upon tito be paid. Who should
pay them, according to just process Of tax,
alton and the Bill of Rights referred to? We
must answer that A should pay on the amount
he owns in said farm and B on the amount he
may own therein from time to time which can
at all times be easily ascertained.
TAXPAYER.