The Washburn times. [volume] (Washburn, Wis.) 1896-1976, 1901-01-16

been attached to an assessors failure to
perform his duty; when it is made some
ones business to see to it that the as
SCISSOR ObeyS the law or pays the penalty
when individuals and corporations are
subjected to the same searching exami-
nation as to cOncealment respecting tax
able property that the fraudulent debtor
now encounters in trying to avoid his 9th
ST liabilities; when the attempt to make
ones neighbor pay ones taxes meets the
same public condemnation and the same
legal punishment that the individual en-
counters i'll trying to defraud the indivd-
ual or the corpora tion-then the first of
these objections will be effectually dis
posed of. The so-caled intangible prop
erty-notes, bonds and mortgagesIwill
then become tangible and assessable prop
erty.
Drive Money Out of State.
But it is asserted that the money will
be driven out Of the state before it's own
ers will consent to pay the tax upon it.
If it is driven out of the state where will
it go? In every state in the Union today
public sentiment is strongly aroused and
organization everywhere moving to make
all taxable property, individual and cor
porate. meet its assessments and pay its
taxes.
On all sides laws are being revised, and,
ments are being adopted to secure this
result. 1t is reasonably certain that the
day is at hand when no state in the
Union will offer an asylum OF refuge for
capital seeking to evade the payment of
taxes. Temporary transfers of limited
amounts may be made. A few individ-
uals may seek a change of residence. But
we can spare the citizen who will expa-
triote himself rather than pay his taxes.
1t will be but a little time before the
tax-dodger will find himself without a
home and country. Furthermore, it is
not believed that much incentive will re-
main for SO removing property from the
state, because adding to the assessor S
rolls the immense volume Of property
which now escapes will largely reduce the
rate Of taxation upon all classes of prop
erty.
1t is asserted that it will raise the in
tereSt rate to make money and mort
cages pay taxes. Possibly it may in
crease the interest rate somewhat to en-
Iofce tne law as TO money and mortgages.
In California, where they have a con-
stitutiOnal provision that real estate
mortgages shall be assessed to the owner
of the mortgage, and the assessed val
uatiOn of the real estate reduced by the
amount of the mortgage two different
claims are made by those opposed to the
assessment of mortgages: one, that the
interest rate is increased to an amount
sufficient to make the borrower pay the
taxes; another, that an agreement be-
tween the borrower and lender is in
sisted upon by the latter, requiring pay
ment by commission or otherwise suffi-
Gent to reimburse the lender for the
amount of taxes which he is required to
pay upon the mortgage. 1t is a fact,
however, as shown by the last census,
that the interest rate in California is
low 10 l.
this may be IN part due to independent
causes. After much discussion Of the
subject, Missouri adopted at the recent
election a constitutional amendment SIM
liar In effect to that of California. What
ever may be the exact fact as to the
effect on interest rate as between the bor-
rover and lender, the principle is to be
commended, because it taxes each man
justly on the record. The mortgagor has
TO the extent of the mortgage parted
with an interest in the real estate The
mortgage has acquired that interest,
and each is taxed only upon his proper
tionate share. There is another aspect
Of the case worthy of attention. Any
law which secures q correct return of
property by the assessor is to be COM
mended. 1t is a distinct gain for hon
esty, and lodges in the public mind a
more wholesome respect for the law.
The Alndividual possessor of wealth and
the corporation of large capital engaged
in evading and violating the tax laws
are doing. much to beget disregard and
want of respect for all law, and to eX-
cuse violation of its letter and spirit with
all classes. But there is further answer
TO be made to the objection to taxing
money, because it is claimed it will in
crease the interest rate. 1t is a manifest
injustice TO each taxpayer to compel him
to pay additional tax, occasioned by al
lowing several hundred millions of money
and securities to go untaXed in this
state, in order to maintain a lower inter-
est rate for the advantage of the COM
paratively few who borrow. 1t is a mat
ter for congratulation in Wisconsin that
the great proportion of those who bor-
row, both upon real estate and collat-
eral security, borrow for the purpose of
improving property, extending business
operations, and carrying and maintaining
lines of credit in conducting everyday
commercial transactions. If some addi-
tioa to the interest rate in this state
should follow the taxing of notes, mort
cages and money as an adjustment be-
tween borrowers and lenders, it is
proposition which will admit of no dis
pute that the individuals, co-partner
ships and corporations borrowing the
money have no right to ask the other
taxpayers to contribute directly or indi-
feclly lOWdIu heepIHS the 4HtcItSI Idlc
down, or, in other words, to the payment
of a portion of that interest.
In conclusion upon this important sub.
ject, have only this to add: 1t is not
unlikely that a complete revision of tax
legislation may result in reconstructins
the system upon radically different lines
There are many reasons that may be
urged therefor, entitled to more or less
weight. But these questions will be set
tied when they are reached in order.
Your responsibility is a present one. And
I commend this subject to your most
careful consideration, confident that you
will meet it with courage and fidelity,
and discharge every duty devolving upon
you justly, fairly and promptly.