Herald and news. [volume] (West Randolph, Vt.) 1878-1943, 1900-10-11

avoid driving il out of the state. This
z left only the latitude beyond these
). metes and bounds in which to work
out the relief problem.
In 1898 there was owned in Vermont
about So. 900. 900 worth of real estate
mortgages. OF this amount, $1,000
T., 600 was held by the savings banks,
which paid the state tax rate on bank
+. deposits of seven mills on the dollar
; The remainder-S15,0 900, 000-was held
by individuals, and the tax rate on 1t
varied according to the residence OF
the party holding the mortgage, from
As cents on the dollar in Randolph
Cthe lowes), to s. ON the dollar in
Mt. Tabor (the highest. The average
tax rate of all the towns was found TO
be about sl.5O ON the dollar. This
s22, 000,0O of mortgages is taxed
twice-onee to the holder of the mort
gage and once to the mortgagor-and
this is the extent OF what is termed |
double-taxation, and the problem is to
50 arrange matters as to tax it but
once and that once in such way that
the lender of the money, and not the
borrower, shall bear it, as he unques-
tionably ought to do.
The commission recommends that,
to bring this about, all money loaned
on Vermont real estate security at
rate OF not to exceed 1-2 per cent per |
annum shall be exempted from taxa {
ton. The legal rate of interest is {
per cent. The commission found that t
the average tax rate in Vermont was a
- per cent, and if the borrower ;
could get money at l-2 per cent he &
could afford to pay the taxes, as he a
would then be paying only 6 per cent b
N all, while now he is paying 6 in e
interest and l 10 in taxes, or Z 10 in r,
III. h.
To make up for the sl5,000,00O that C
hus fall out OF the grand list and the OF
y 100000 (bank loans) that would be a.
ost for state taxation, it is proposed lii
ID to abolish the exemption from &C
ebts owing allowed against personal le
property and % to tax the property al
f all corporations at rate equal to ed
be average tax rate throughout the 81
tate instead Of, as at present, accept tx
lg a certain per cent of the gross &c
eceipts. The personal Indebtedness ey
ow entered as Offset amounts 10 pl
bout $4,000, 600, or double what sh
'ould be lost by the exemption OF wi
The state would realize Ia
n immense increase from the taxa be
on OF corporate property in the ov
lethod proposed, probably four times is
; much as at present. no
The plan of the commission. in brief, be
To relieve land owners from tax WI
ion on their debts to make up the pl,
zeal loss in revenues by taxing the tn
ebts of personal property owners lie
nd. to make up the loss in state reve- 10,
les by heavily increasing the tax on it
KIN
Much as we would like to do so, we i'm
lnnot approve Of this plan. 1t might m,
more unjust than the present sys- III
IN is, but it would be nearly or quite ex
bad, and the disturbance that would pa
lsue from Its adoption would far ex- GA
'ed in severity the general gain af- pa
rded by the relief to real estate as
)lders which might ensue. do
As to the first recommendation COZ
npting mortgages placed at 1 l-2 per tn,
could only partially accom- ma
ish its object. If A is now realizing ow
ore than l-2 per cent net from his be-
ortgages, he win not take advantage bo
this provision, and his debtor will of
otain no relief. Thus, ifhis interest on,
o per cent and the taxes in the town ent
here he resides are less than | - all
'r cent, there would be no object in ca.
curing the exemption at the redue-
rate. ltwould aid only the lenders
no live in towns where taxes exceed
l-2 per cent, and their debtors. Com ~
'tition among lenders might bring
'out general acQuiescence in the ~
W. but many mortgages are now T.