The Corvallis gazette. [volume] (Corvallis, Or.) 1862-1899, 1894-11-30
CREDITS SHOULD BE TAXED.

Mr.. Davenport in another column
undertakes again to show that when
credits are taxed the debtor pays the tax
The record fails to show this. Under
the operation of the old mortgage tax
law more general listing of property
was had than now, and the amount of
notes assessed then was far i'll excess of
the notes assessed under the present law.
Besides, thousands of dollars were loaned
then, while since the present law went
into effect it has been almost impossible
to get any money at all. Most of the
mortgages in Oregon are now taking
every bit of income from the farm to pay
the interest True, 1t was a voluntary
agreement to pay 7, or even 10 per cent
interest But the mortgage is yielding a
good income and, on the other hand,
the farmer is struggling to meet the in
terest, and on top of that must pay the
taxes, which is at least two per cent
additional. Now, then, if capital wishes
to seek investment in Oregon it ought to
pay taxes On its interest in the property
which secures its investment. There is
no equity in compelling borrower to
pay tax on the cash value of his property
with no deductions for Indebtedness.
The constitution presumes that all per
sons will pay on what they are worth;
not on what they owe. If a farmer has
title to property worth $1,000 in cash,
and against such property is mortgage
Indebtedness of 5000, the farmer is
worth really but 5000. Yet, under the
present law, he should be assessed for
IS, 900, and the mortgage is expected to
list his note for assessment also. This
results in q double taxation on $1,000.
Both debtor and creditor have paid the
tax, which disprovcs the idea that only
the debtor pays it. The advantage of
allowing the debtor to furnish schedule
of his Indebtedness, is for the purpose of
obtaining more general listing Of cred
its than is possible under the operation
of any other plan. 1t relieves the law of
its otherwise inquisitorial feature, and
compe1s the creditor class to pay taxes
on all the property they possess, or have
an interest In, and no more. No honest
man will object to paying his just pro-
portion of the tax SO long as he knows
that his neighbors are paying their pro-
portion. But he does object when his
neiphbor, who owns a half interest in his
property by virtue of mortgage, is pay
ing less taxes than himself By per-
mittiug him to list that mortgage and,
after paying the tax on his property,
allowing him to turn over to the mort
gagee his receipt for the amount of tax
paid on the mortgage, and have it applied
in payment of the debt; both have their
just proportion and no more. Govern
ments and formed for the advancement of
society and the protection of life and
property. Taxes are collected for the
maintenance of the government The
holder of mortgage is virtually an
owner in the property which secures it,
to the face value of the mortgage. If
this be true he deserves the same benefit
from the government that the real owner
of the property does, and he should pay
his proportion of the tax. Credits ought
to be taxed, because of the interest they
evidence i'll tangible property, and there
is no reason why the debtor should pay