The Vermont watchman. [volume] (Montpelier, Vt.) 1883-1911, 1896-11-18
Exemption Of Foreign Stocks.

mont has become so fixed on one pro-
posed way of adjusting the burdens OF
taxation equally that he loses sight OF
every other means. In 1882, wht n the
law taxing corporations was passed, a
long stride forward was made in the
equable division of taxation. This
step was one of rel and d cisve pro.
gress, but the possibilities of progress
were not exhausted by the enactment
of the corporation tax law. Since that
year the leg islator has expended bis
energies in the attempted solution of
problem that is apparently as inscrut-
able as perpetual motion or squaring
the circle, viz, rational and feasible
REIMBURSEMENT of the relations of mort
gageor and mortgage in respect of
taxation. In the pursuit of this will
o-the-wisp, he has become so infatuated
as to lose sight of other, and rational
and feasible, means of raising revenue
and equally distributing the burdens
of taxation.
Vermont law formerly permitted the
taxation of shares of stocks in corpora
tons outside the state. BY No.2, Acts
of 1926, stock in banks of other
states, owned by persons in the state,
could not be taxed here; and by an
act of 1S41 shares of stocks in foreign
corporations owned in this state could
not be taxed here if taxed in the state
where the corporation is situated.
Massachusetts, permits the taxation OF
such shares, as do some other states.
Here is legitimate and fruitful
field for the labors of the legislator
seeking 10 equalize taxation and to
tighten its burdens. Properly cult
waited, it ought to promote home enter
prise, relieve the farmer, and encour-
age industry every where in the state.
Taxes are levied for various rea-
sons--for the support of schools, for
roads, for aqueducts, for building rail-
ways, for estat fishing Libraries, for
making laws, for carrying laws into
effect, in the courts for administering
justice and enforcing the laws, for the
support of the poor, for the protection
of property, for the general advance
! ment and enlightenment of the people
of the state. For all these reasons the
citizen owes the state debt which he
pays in the shape of taxes, and the
measure of his ability to pay is the
value of the property he owns.
If nine persons out of ten in this
state, having property invested here,
are realizing six per cent on the in
invested in mines or manufactures, in
sugar trust or standard oil stocks, or
other foreign stocks that are leaving
him, after paying all local taxes, an in.
come of six per cent, why should this
tenth man be scot free of taxation?
Excepting protection to his property,
he is enjoying every public advantage
his nine fellow-citizens have provided,
but towards the payment for which he
contributes only a poll tax. His chill
dren attend the public schools; the
highways, sidewalks, personal protec-
ton under the laws, the police, the
courts, ETC., ETC., are his practically
"free gratis for nothing" Why should
not his mining, or manufacturing, or
railway, or oil, or sugar or other stocks
"pay the freight" on the greater and
the inestimabe advantages the state
provides for him?
John Doe and Richard Roe live in the
same town or city, which may be
Montpelier or any other community in
the state. John Doe invests 100000
in mandatory that employs 100 men.
| Richard Roe puts 100000 into sugar
trust stock in New York. Why should
not Richard Roe contribute equally
with John Doe to the support of the
government under which he lives? Its
protection he has, its public advantages
are his equally with his neighbor, but
toward the support of government he
contributes the tax rate on a grand list
of so, while his neighbor, the local
manufacturer, pays the same rate on a
grand list of $1,000. Here is field
for the equalization of taxation " that
should invite the labor of legislators,
and inspire them with zeal that would
not be biennially wasted. Exemption
of mortgages from taxation can but add
to the burdens of the mortgagor. The
taxation of foreign stocks owned in the
state, would be as reasonable a meas
ure, as powerful litter of taxes from
the overIaXed, as the corporation tax
law of 1882 has proved.
! sS7> ~ One reason WITTY
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