Iowa County democrat. [volume] (Mineral Point, Wis.) 1877-1938, 1901-11-21
SENSIBLE TAX REFORM.


The Milwaukee Journal some very in
structive articles on the subject of
taxation. In recent issue he refers
as follows to feature of the ques-
ton which is seldom touched upon by
the tax reformers;
Corporations should pay their full
and just share of taxes. No doubt of
that So should other taxable prop
erty. But much that our state con-
stitution and laws treat as property
and assess, when it is possible, is not
property at at all, and should not be
taxed. When a man buys house
and ''pays s., 900 for it," 81 900 down
and the remainder in notes of 81 ,O0C
each, payable in one, two, three and
four years, our laws will, If they are
lived up to, tax him on the full 50 900
Of value in the house, and will also
tax the mortgagor on $4,000 of notes
that are not property, but merely
promises to deliver property of some
kind. In other words, 50 900 of value
is taxed where but s. 900 exists. It is
not remarkable that people seek to
evade such unjust taxation. 1t is al
so a fact that the force of this injus
tice falls on the borrower. Yet we
hear people crying out continually
for the taxation of this sort of prop
erty, and, SO long as our laws are
stupid enough to demand it, the cry is
justifable, though meretricious. The
effort to escape from the thrall-
dom of this sort of statute law is one
Of the most intelligent and most prom
Using attempts at tax reform, now in
progress. If it can be accomplished
it will clear the way of much rubbish
and expand the opportunity for clear
er vision on the entire subject"
We really believe that tax reform
should begin with the repeal of all
laws requiring the taxation of evil
dences of debt. Recently worthy
farmer asked if we knew where he
could borrow $4,000. He told US
that he knew where he could borrow
the money at the usual rate Of per
cent, but that he would like to get it
at lower rate, and thought that he
ought to be able to do so, as he could
secure the loan by first mortgage on
and added that he thought there
would be no trouble in getting it at
less than 5 per cent il loans were not
taxed. And indeed, the presumption
is that if loans were not taxed, or at
tempted to be taxed, he would be able
to borrow the money at very nearly
the same rate as banks pay on time
deposits, which is three per cent.
No man or party of men will dare
dispute the old Democratic PROPOSE
tion that the laws should work equal
and exact justice to all men. Let us
call this farmer Mr.. Smith and see
whether the strict execution of our
present tax laws would work justice
between him and his neighbcr Mr..
Brown who has $40, 900 worth of real
estate but is out of debt:
Assess Mr.. Brown to the full cash
value of his estate, $50, 900 and this
in the town of Mineral Point it would
be taxed, say 2 per cent, or S4OO
This would have come out of the farm
and Mr.. Browns labor.
Assess Mr.. Smith also at $50, 900,
and this would be taxed at about 2
per cent or $400; but the law also re-
quires the assessment and taxation of
the loan on Mr.. Smiths farm, $40, 900.
This amount, if the owner should live
in the city Of Mineral Point, would be
taxed at about 3 per cent or $500.
We hold that Mr.. Smith would have
TO bear the burden of both these
amounts. And if this is the case here
is the way the law would treat these
two farmers, the one who is in debt
and the other who is out of debt.
Mr.. Brown, who holds $4,000 worth
of unincumbered real estate, would
pay to the support of the government,
$500.
While Mr.. Smith, who holds $40 900
worth of real estate which is in
numbered in the sum of $4,000 would
pay to the government, $500 on the
farm and $500 on his incumbrance,
making total of 800 as against $500
from his neighbor Brown who is out
OF debt.
This is simply rank injustice and
should be no longer tolerated.
This feature of the tax question has
never yet been successfully explained
by those who demand the taxation of
securities. We are speaking now of
the law itself-not the enforcement OF
the law; because we believe that the
laws as they stand should be enforced.
But we submit that laws which work
the injustice above printed ought to
be repealed. We are aware that Mr..
LaFollette calls this view the aca-
demic side of the question; but is it
not the real practical side of the
question as we'll? Like the benefcent
doctrine of commercial freedom it is
not be very popular at the present
time, but, it is right, everlastingly
right.
In the course of an article on the
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