The Plymouth tribune. (Plymouth, Ind.) 1901-1911, 1902-06-12
A BENEFICENT LAW
Indiana Mortgage Deduction Law
Has Afforded lust Relief to
-
g. Thousands.
FAIR PLAY FOR HOME HOLDERS

6dS JUST Been sustained ny tne gu
preme Contradictory General Tay-
Tor Talks of the Purpose and Effect
of the Law.
A law which has lifted heavy bur-
den from the shoulders of the small
home-holder, and which has not at the
same time added to the general weight
of taxation, is the mortgage deduction
law passed by the Republican legisla-
ture of 1899, ably and diligently up
held by Attorney General w. l.. Tay-
lor. and through his efforts indicated
in the supreme court of the state the
other day. So firmly convinced was
Mr.. Taylor of the justice of this meas
ure, and so determined to maintain it,
that he paid out of his own pocket the
cost of carrying test case to the SUI
preme court, where the constitution
atty of the law has been affirmed. The
law provides that mortgage indebted
deducted from the assessed value of
any piece of property, where the prop
erty is worth at least double the amount
of the mortgage Indebtedness. This is
the first law of the kind ever passed
in the history of the state. Its pur-
pose was and it's effect has been to
relieve mortgagors of an unjust bur-
den of taxation.
Justification for the Law.
At the annual conference of town
ship assessors held at Indianapolis in
1900 Attorney General Taylor said:
"A vigorous protest is being entered
everywhere against the owner of
lot in town or a farm in the country,
deducting 500 of the mortgage from
that lot or that farm, and yet for 40
years, without one word of protest,
the holder of the mortgage upon that
lot or that farm has been using that
mortgage as shield to protect him
self against his Indebtedness If the
mortgage upon the farm can be used
as shield, why cannot the farm itself
be used as shield? This is simple,
homely, everyday common honesty.
A man may own a million
dollars OF first-class securities, and be-
cause he has some money in specula-
ton in some distant state he can deduct
the total amount of such speculation
from such first-class securities which
have no connection with the debt. It
is true the 500 law will take a great
deal of property from the duplicate,
but it will not take 1.-THE of the prop
erty already taken from the duplicate
by the system of deductions that has
fastened itself upon our law. am for
the 500 law and shall defend it in the
courts wherever assailed until the
vicious system of deductions shall
have been greatly modified" Mr.. Tay-
lor further said that in his Judgment
there would not be great loss upon
the duplicate for the reason that prop
erty that had escaped under the deduc-
ton law would now go on the dupli-
cate.
Operations Of the Law.
Mr. Taylor's prediction has been full.
filled. The report of the state Stats,
tician made the next year showed that
the total amount of deductions unuer
the 500 law was $29. ,9S1, while the
total gain of taxable property for 1899,
exclusive of mortgage deductions, was
$31, 723.152, net gain Of. s2,653,152.
Speaking recently of the operations
of the law. the attorney general said
From the report of the statistician
it appears that s4O.OOO.OO0 of taxable
property this year is withheld from
the duplicate IN Indiana because of
debts being deducted from credits by
taxpayers. 1t is a remarkable coinci-
dence, but true, that the total deduc-
lions on account of the mortgage in
debtedness in Indiana for the year
1900 amounts to s40,OO0,0O0. Here is
a grand total Of $50. 900, 900 of deduc-
tons, claimed by taxpayers in Indiana
in one year under the two deduction
laws on the statute books.
Eighty thousand taxpayers in Indi-
ana have filed affidavits and made
claims for these deductions under the
new mortgage deduction law"
Credits and Mortgage Deductions.
"Is Is said that credits ought not to
be taxed because they may not. be
collected. True. But they are ap-
praised at their probable value. which
includes the hazard of collecting
But credits are generally more valua-
BILE than money. A mortgage on your
home is more valuable to the holder
Of the mortgage than gold. and yet
that is a credit from which the mort
gagee can deduct his Indebtedness
It is nonsense to talk about repeating
the law on credits. It would be highly
improper and unjust to charge holders
of property their full value when they
owe almost every dollar for them.
Persons of moderate means are not
those who claim great deductions. I
looked up this question in Marion
county short time ago-began with
the letter c In the alphabet, and
found thirteen names: the first thir-
teen that I struck claimed and took
deductions of nearly 100000. know
a man in Indiana who can give his
check for nearly million dollars that
got deduction of $4,000 this year on
account of credits. If he can get a
deduction of $4,000 on account of
credits why can't poor man paying
for his home get deduction on &C
count of q mortgage on that home?
Yf the man that holds This m orf on OF,