Delaware gazette and state journal. (Wilmington, Del.) 1883-1902, 1897-02-04
me Taxing Of Inves,mouts.

again btApho ttio A~rH ~ N~NNh-
ware. notice having been given Thura-
day by Representative Adams Of a bill
for this purpose, under the misleading
title OF "An Act to Equalize Taxa
tiOn. ("
Nearly all Investments are to be taxed
under the provisions Of Mr. Adams
bill, and the term Investments is
legally defined as follows: Gan bombs
for tho payment Of money, mortgages,
ntnEks Of every kind, not herein ex-
pressly excepted, all judgments. re-
eognizances and decrees for the pay
meat OF money; all judgment notes and
certificates OF Indebtedness, except such
as are given in good faith for goods
sold and delivered, for wages and such
judgment note or other evidence OF in
debtcdness, as may be given for short
periods in the course of busineBs, and
not used or intended as Investments
All alienation bonds bearing interest,
or when the interest Ia included in the
body thereof. Ali interest. bearing
loans to any person, firm, company,
limited partnership, bank, banking
associations, and corporations Of what
soever kind, whether doing business in
this State or elsewhere. Payment OF
inteFoat in advance or adding ii to the
principal shall In no case exempt the
lender or creditor from the payment OF
She tag.
Tho question Of the wisdom OF at.
tempting to impose taxation upon
money investments ia not new one,
ny any means. Ii has been raisad time
and again. Whenever the system has
been tried. it has failed Of accomplish
ing its purpoae-that of requiring the
fortunate holder of the Investments 10
pay tax upon his profits. The debtor
has invariably been required to pay the
tnE, in addition to the interest and
principal Of hts obligation. And eyer!
time the subject has been under con
alteration, 10 this State and elsewhere,
the weight Of argument has been agains
thc wisdom of the proposition.
Perhaps no better illustration OF tn,
force OF this contention could be giver
thGn to quote from Mr.. Adams bill
the paragraph Immediately following
the one in which the term Invest
laants' ia go fully defiGed. It read
as follows:
Tho following are exempted and cx
Guided from the operations Of this act
All loans and evidence Of indebtrlnes
of the United States, Of the State o
Delaware, or of any Of the cuuntie
thereof, OF religious and henevclen
associations whose real estate il by la'
e&DMpt, and of such other securities a
Gre nDW exempted by express provision
OF iEE all loans which are made t
local manufacturing companies, whe
bnGir real estate is expressly cxemI
BY law. All stocks in Gducationa
charitable or benevolent institutions
whether Incorporated or not, aud all il
vGstmenta by savings banks and shaft
o. building and loan associations an
Investments made by them
The question naturally asigcs. wi
should the bonds OF the United Stat,
AMI of the State Of Delaware be cxnnl
from the proposed taxation? Both a
good Investments, and certainly shou
Dr. taxed if Investments of any Kind Il
10 be made to pay tribute TO the Stat
II is not hard to give the answer.
II the United Star bonds, there
doubt "a to the power VI the State
tax thoul. AS 10 the bonds OF the Sta
d Delaware, every man vino taVnrs q
proposition to tax Investments kno'
to certainty that If the State nF Del
Gare should imposn o tax uu0h it's nY
bonds, tho State Of Delaware would
required 10 pay tho tax 80 ippnRa
H. would either have TO give To {
holders chgckg for tho STATE tax VIII
it paid tho interest, or SOC it, bonC
at each sale, deprcriatcd Just to (
extent Of the amount OF tax impose
Some years ago thu bGnds of the ci
Of Wilmington were subject to ST.
taxation, and the records of g.
Council will show that as regularly
chcckl for the Inherent were drRw
checks for the State tax were 4
drawn and given or sent to he hold
Of tho bonds. Tho city paid tho Il
not those who had invested in
bonds.
Experience has demonstrated thc +
that no form of taxation Of invostmcr
can be- deYiRcd that will not imnoRe
amount Of the TAG upon the deb
class, and all attcmpL5 in thia Giircuti
therefore, but ada to tLe burdens
those the least able 70 bear tht
When this is not the case, the result
10 drive capital from tho communi
aud thus mgkn tho situation infuit
worBo. Capital will not seok hc
where its opportunity for larora
returns is restricted by oneraua ia
ton
pha Lhgislalure, therefore, will
we'll 10 give 80 confederation tn
bill imposing T. tax on Investments,
viii not 6ecufe tho arairoI Obi
and will Only work injury to tho SIT
Taer proposition u the Constitute
Convention 10 practically unit o
nary ie@ i6iJti9e smsionl TO Risty d
and sroea. g.4.iuna 10 r%o.ty IHyr,
allowing mtmhafg NOR diem dun
thGgl limitauniy ID q aoml orr. "
tho work ni an average h, ssion il
yaVel. ard tho timo wasted COZ
nsa@, it @!ii 10 srrn that aiXty q
&ou!d have ben awDlo for all
rDaua. To A% a ImiD wiIl have