Vermont phÅ“nix. [volume] (Brattleboro, Vt.) 1834-1955, 1898-10-14
GOV. SMITHS MESSAGE.
ACCESSIBLE New Source of Reve-
nue---GOOd Roads.

First Communication TO the General
Assembly and the People Ofthe State.
In many of our sister states there ha.
been radical and extreme legislation with q
view to reach the estates of rich people
whereby inheritance tax, income tax, and
extravagant and unequal local taxes are
Imposed on this class of persons to their
infinite distrust and annoyance. Legisla
ton of this character is growing in severity
and volume with the result that, upon
good reason, or otherwise, a great many
large fortunes, and innumerable small
ones are being driven from those states
into other states where the laws of taxation
are less drastiC--or out of the United
States altogether. Such fortunes will
never locate permanently until they have
some harbor where they can anchor in
safety, and where they shall be insured
against attacks from what they deem,
Justly or uniustly, extreme legislation.
1t is with view to inducing such storm
driven individuals who are seeking help
and relief TO come and give the state of
Vermont the benefit of their wealth and
receive in return that safe and certain pro-
lection 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 nonresident, who
may hereafter become a resident of the
state, the privilege of entering into a con-
tract with the state under its seal for a
term Of years, say 80, whereby such per
sons 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 com
mission appointed 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 etsate, and to
be paid directly to the treasurer of the
state for its benefit annually. The funda-
mental idea being that nonresident may
come here, and before assuming the re-
sponsibilities of citizenship, may receive a
contract that the state will tax such per-
son an annual specific sum to be agreed
upon, and no more for the term of his con-
tract. Once the contract is signed by the
state the nonresident becomes a resident
and pays his annual fixed sum and t.,
bothered no more pending the life of his
contract, as to taxation either by legisla-
ture or listers or appraisers or courts. As
to any real estate such person may desire
to own in the state it should be provided
real estate to the town wherein it is situat-
ed, but that enough to allow such persons
a homestead, say 100 &C in the country
or one acre in the city, shall be exempt.
That is to say, whatever is assessed against
such homestead by the town or city shall
be deducted each year from the amount
such person pays to the state. The privi-
lege of this law should be limited to such
ugillt To at
per annum to the state, and the contract
should run for the benefit of the person
and his legal representatives.. There
should also be required from such persons
a deposit of securities or a bond to secure
the payment of the tax during the term
of this contract. There should be a COM
mission appointed which shall have author
ity to enter into such contracts on be-
half of the state and to afiix the seal of the
state thereto.
Such law would not infringe the con-
stitution, in my judgment, as the PROPOSE
ton simply adds to the present corpora
ton tax law another group of persons who
are taxed to the state, in addition to rail
roads, savings banks, trust companies. etc,
and treats alike all non-residents who avail
themselves of the law. 1t is no hardship
or injustice to present citizens to the state,
since the money derived from such taxes
by being paid into the state treasury
would be for the benefit of all alike.
There is in addition to this indirect bene-
fit that would come from the successful
operation of such a law, that whoever
availed himself of it, would have to spend
a portion of his time in the state, and
this would involve the distribution of
more or less money, which is not distribut-
ed now, among the people of the state
Whether such law would result in an
immediate and vast increase TO the revenue
of the state | am not prepared to say, but
1T is certain if we do not try it we shall
not know; it is also certain it can do no
harm. There is some reason to hope it
will prove a success if commission is ap-
pointed that will push it vigorously The
underlying principle will be, | believe, at
tractive to any one who is seeking certain
ty as to taxation; and who is not?
His Discussion of the Good Roads Ou.s-
ton.
The present relation of the state to the
highways, with all due respect to the
trainers of the law, is entirely wrong.
Under the present law over $50, 900 a year.
per cent of the grand list of the state, is
buted to the various towns, and 245 high
way commissioners spend each towns pro-
portion of this $500 in keeping in re-
pair the highways of each particular town
or are supposed to do so The state has
no voice or discretion as to how or when
this large sum of money shall be spent,
and no control or jurisdiction over it what
ever. AS matter of fact, if | may rely
upon the best information | have at hand,
there is not 81 of the money that goes into
permanent work, or that furnishes a last
ing benefit to the state. There is no re-
port made thereof to the state whatever.
No man in this assembly would apply the
principle that controls the distribution of
this per cent state tax for highways to
his own business. No man with an in
come of $50, 900 or less, or more, would al
low 245, or any number of his servants.
however good, to spend it without any
voice or control or exercise CT accounta-
bility respecting it whatever. How, there
fore, can you do your duty as legislators
and allow this condition as to $4,000 of
the states income to remain as it is?
This state OF affairs is no fault of the
highway commissioners of the several
towns, and no criticism whatever on them.
IL is incident to the law itself, which dis
slpates the benefit that would accrue to
the state if this $50, 900 was directed from
one standpoint, or by the state. The idea
that underlles this law relating to the re-
distribution of the per cent tax is, that il
aids the poorer and smaller towns: but
this is not true, in my judgment. The
idea Is, for instance, that the town of Han