Idaho semi-weekly world. [volume] (Idaho City, Idaho Territory) 1875-1908, 1893-03-24
- EXEMPTION OR MOE rGAGKs
RlGllTH

ment OF such motives will not prove
at all satisfactory to those who will
De forced to pay the taxes. The
members may have been honest in
their action, but this action was not
called for BY the people. On the
contrary the papers Of the State, with
scarcely an exception, opposed the
bill from the start, and newspapers
generally reflect the sentiments Of
the people. The money lenders fa-
vored the bill, but the producers and
those who borrow money did not.
That fact is an arguments within it.
self. The Statesman says :. testimony
was unanimous in support Of the as
sertion that the taxing Of mortgages
tended to keep money out Of the
State, and that when il did come and
go into that form of investment,
means were generally found to make
the borrower pay the tax" This
ground does not seem tenable. II
the borrower ultimately pays the tax
when mortgages are taxed, why were
money lenders so anxious to have
mortgages exempted? If such were
q fact they would have taken no IN
terest in the matter. Again, taxa
ton of mortgages would not keep
money out of the State if the mort
gagor pays the tax. That is, if the
mortgage adds exactly the rate of
taxes to the rate Of interest his profits
would be exactly the same under
either law. But taxpayers will learn
before two years that the rate of
taxes will not be deducted from the
rate of interest. Interest may be re-
duced little, but not enough to com
pensate the borrower for the extra
amount of taxes he will be called
upon to pay. The worst feature of
the law is the double, or we might
say treble taxation on the borrower.
This phase of the law has already
been exhaustively discussed by the
WoRlD. Now If this law was en-
acted for the purpose of bringing
money into the State, we say extend
that meritorious (?) feature. In order
to build up the State We Iced money
and muscle to develop our agricul
tural and mining resources. Why
not exempt land and mining machin-
cry from taxation? Land buyers
and mining men would then bring
their millions. 1t is not money to be
loaned we need SO much as money to
develop our resources. Mortgages
hinder rather than help development
With productive enterprises exempt
from taxation and mortgages taxed
double or treble, we would have a
more just and progressive state Of
affairs than we will have under the
present law; but we do not claim
this would be at all just. The
WORLDS theory is that all wealth
should be taxed, and all taxed exactly
alike. This theory Is 81 transparently
just that no amount of sophistry car
upset it. The fact of the money
lenders of Oregon working for the
repeal of the mortgage tax law o
that State, does not prove that sucf
taxation is unwise. Money will eser
nally have the best of productive in
dustry. This law seems to be a.
fixed as that of the attraction o
gravitation. For this reason it il
| unfair to give extra advantages b,
t law enacted for its exemption from
its Just burdens of taxation, and in
, creasing the burdens of other form
| of wealth. The taxpayers will learl
= before two wears that the WORLD
= position is right. We would rejoice
the conditions of productive industr,
we're bettered under this law, and tn
general prosperity of the State in
creased under its provisions. Th
WORLD would be pleased il result
should prove its position wrong i
4 theory, for then it would have tn
satisfaction of knowing that the in
= terests of the class to whom the cour
trv is indebted, more than to any otf
er-the productive forces (which en-
body the patriotism OF the countr
and have always been its solid bu
= waIk in times OF great troubles) hav
been advanced rather than injure,
> But such results the WORLD has n
Il hopes of beholdlng. We expect ratl
. er to hear of far more foreclosure
D and a greater number of famili'
D. turned out of hitherto happy home
1t will require great deal Of plaus
10 hle sophistry to convince the stru:
gler that heavier burdens increase h
happiness; IN the face of hard fac