The Londonderry sifter. (South Londonderry, Vt.) 1883-19??, 1898-10-14


an original suggestion whether the
same is correct or not. Be that as it
may the governors taxation sugges
ton is bound to attract widespread
attention. 1t is founded upon the
fact that wealthy men, in some states,
are kicking vigorously against the
way they are taxed and are transferr'
ing their residences to states with less
oppressive taxes, Gov. Smith would
take advantage of this condition.
Here is what he says:
1t is with a view to inducing such
storm driven individuals who are seek
ing help and relief to come and give
the state of Vermont the benefit OF
their wealth and receive in return
that safe and certain protection which
this state can give as well or better
than any state in the Union, that |
suggest the ACCESSIBILITY of adding to
the present corporation tax law a
provision that shall allow any nom
resident, who may hereafter become
resident of the state, the privilege
of entering into contract with the
state under its seal for a term of
years, say 80, whereby such PERSONS
taxes shall be fixed at specific sum
annually. Such fixed sum to be
measured by percentage of his sworn
income or to be an amount agreed
upon between commission appoint
ed by the legislature and the party
who avails himself of this law. Such
sum to be in lieu of all other state or
local taxes on his personal estate,
and to be paid directly to the treas.
urer of the state for it's benefit annu-
ally. The fundamental idea being
that nonresident may come here,
and before assuming the responsible.
ties of citizenship, may receive con-
tract that the state will tax such per-
son an annual specific sum to be
agreed upon, and no more for the
term of his contract. Once the con.
tract is signed by the state the nom
resident becomes a resident and paws
his annual fixed sum and is bothered
no more pending the life of his con.
tract, as to taxation either by legis-
lature or listers or appraisers or courts.
AS to any real estate such person may
desire to own in the state, it should
be provided that such real estate
shall be taxed as other real estate to
the town wherein it is situated, but
that enough to allow such persons a
homestead, say 100 acres In the coun-
ty or one acre in the city, shall be ex-
empt. That is to say, whatever is
assessed against such homestead by
the town or city shall be deducted
each year from the amount such per-
son pays to the state. The privilege
of this law should be limited to such
persons as are willing to pay at least
$500 per annum to the state, and the
contract should run for the benefit of
the person and his legal representa-
tives. There should also be required
from such persons deposit of secu.
rites or bond to secure the pay
ment of the tax during the term of
this contract. There should be a
commission appointed which shall
have authority to enter into such con-
tracts on behalf Of the state and to
alfix the seal of the STATE thereto.
| can see no good reason why the
state, under legislation that shall prop
erly protect the rights of every present
citizen, should not open its doors to this
class of persons and receive a proper
and legitimate increase to lis revenue
which it can obtain in no other way. Z
1t it is true, and it is, that the in.
creasing wealth of citizens of other
states is being hidden and smuggled
from one place to another to avoid tax
alton, unjust or otherwise, what harm
to the people Of this state if we invite
such persons to locate here under con-
tract which is fair to the state and fixed
and positive and fair to the owner Of
the property?
Such a law would not infringe the
constitution, in my judgement, as the
proposition simply adds to the present
corporation tax law another group of
persons who are taxed to the state, in
addition to railroads, savings banks,
trust companies, ETC., and treats alike
all nonresidents who avail themselves
of the law. 1t is no hardship nor in
justice to present citizens of the state,
since the money derived from such
taxes by being paid into the state treas.
ury would be for the benefit Of all a.
like.
The proposition, | submit, is an hon.
est one all around-to the state on the
one side, and to the nonresident, who
became resident, on the other side
1t forms an equation in taxation where
there is value received and satisfaction
on each side.
There is in addition this indirect ben