Vermont phÅ“nix. [volume] (Brattleboro, Vt.) 1834-1955, 1898-10-14
Gov. Smiths Taxation Scheme
Its Plan Briefly but Clearly Stated.
From the Burlington Free Press

From the Burlington Free Press
Gov. Smith invites attention to a taxation
project which he confidently believes will re-
sultin material addition to the number of
men of great wealth who have established
their residences in Vermont during the
past few years. The attention of the read
ing public has recently been forcibly drawn
to the large number of millionaires who
have abandoned New York on account of
the manner in which they are oppressively
taxed during life and their est ties made to
pay heavy sums to the state in the form of
inheritance taxes. These men of large
wealth are transferring their homes
from the Empire state to other COM
monwealths, and in view of the man
lfold attractions possessed by Vermont,
Gov. Smith believes that we can induce
some of these and similar men from other
states to locate within our borders.
The method by means of which the gov
ernor hopes to accomplish this undertake
ing can be compared to the principle en-
bodied in the abatement of taxes for those
who bring new industries to a community.
The idea is modified in various ways, how
ever. Gov. Smith says that the vast for
tunes which are now made the object of
the Inheritance tax, the income tax, and
eXtravagant and unequal local taxes, will
never locate permanently until they can be
assured immunity from unjust attacks of
this character. To assure this protection
Gov. Smith would have the legislature
pass an amendment to the corporation tax
law providing that any nOn-res dent, who
shall hereafter become resident of Yer
mont, shall have the privilege of entering
into contract with the state for term of
say 30 years, whereby the taxes of such
persons shall be fixed at a specific sum an
nually, such sum TO be measured by a per-
centage of their sworn incomes, or to be
an amount agreed upon between a COM
mission appointed by the legislature and
the parties availing themselves of this law.
This tax is to be paid into the state treas
ury, the same as the corporation tax, and
any real estate tax assessed is to be deduct
ed from this state tax. Gov. Smith rec
ommends that the privilege be limited to
persons willing to pay the state at least
5000 per annum, and that bond be re-
quired to secure the payment of the tax
specified during the term of the contract
Experience has shown that people of
wealth who become residents of our state
soon become identified with our local in
terests, and with the development of our
natural resources, directly or indirectly;
and their wealth therefore contributes in a
variety of ways to Vermont's material
progress. The plan outlined by Gov
Smith will cost us nothing, and it is well
worth trying as an experiment,
From the st. Albaps Messenger
The recommendation is entirely new and
original. How far the opportunity offered
by the suggestion, should it become law,
would be availed of, may be problematical
This much, however, is certain, its adop-
ton would not operate in the slightest de-
gree to the injury or disadvantage of any
present taxpayer in the state, while every
dollar accruing to the state treasury through
the operation of such law would not other
wise be available.