The Democratic advocate. [volume] (Westminster, Md.) 1865-1972, 1902-02-08
The Mortgage Tax.


Mr.. Wells, of Prince Georges, the author
of the bill to repeal the income tax on mort
cages, says
The tax clouds the title Of property:
The.aw Is practically impossible OF enforcement
That It drives capital from the state.
That less than 10 per cent. is collected
That It is a failure a revenue producer.
That the tax clouds titles is a monstrous
statement. How it can do SO is beyond COM
prehension, any more than the taxing Of land
clouds titles.
That the law is practically impossible OF en-
forcement is negatived by the receipt OF the
State of nearly S2s, lin the fiscal year ended
September 80, 1901, and the receipt by the
counties Of about ss4, 500
We are not aware that any capital has been
driven from the State by the taxing OF IN
comes from mortgages. There is no dltlcui-
ty in securingsloans on mortgages where the
property is sufficient, and lots of money IS
loaned at per cent.
That less than 10 per cent. of the tax IS
collected is mere guess. There was some
difficulty in the beginning for county treasur-
ers to get list of unreleased mortgages and
finding the holders, but the vexatious stage IS
past If the tax is not properly collected It
i the fault Of the county treasurers. Aad
sunnose It is moi all collected. Shall we re-
NIT all because some is not gatheredY In
Baltimore the estimate of collections is about
eighty per cent. ofthe levy, and in no county
is all the tax levied collected.
The law is not failure as revenue pro-
Queer, as official figures show, and the reve-
nue from that source will continually increase.
for all mortgages now recorded are easily as
sessed.
There is no more sure security for loan
than mortgage on real property. Railroads
NAV default, banks pass dividends, trust COM
panies fail, industrial stocks yield no income,
but real property does not take wings Those
who lose by mortgages lose through their own
fauit-by advancing too much or not FORE
closing promptly upon default OF interest.
But there is a risk in everything. Individual
or corporate enterprise is liable to loss. The
artisan, the manufacturer, tradesman, PROBES
sional man and laborer all lose, and so do
money lenders, brokers, banks, railroads ana
all. There is no unbroSen gain for anybody.
There is no exemption from loss for the State
or county.
Much property escapes taxaton' out pc
cause Of that should all property be released1
Or must taxation cease because it IS not uni
form or fall alike upon all 2 1t should tall
upon all alike, but it does not.
The mortgage tax is called by tax-dodgers
a double tax. But it is not. Taxation OF in
comes from mortgages is in the nature OF
license tax. A merchant, for instance, is
taxed upon his stock of goods, and then IS
CHARGED license for selling them. That is
not called double tax. The mortgaged prop
ertv pays tax, and the mortgage pays
license tax to loan by giving up eight per
cent. of the income. And how does this IN
come tax compare with the tax upon proper
ty? A man who owns $1,000 home is as
sessed at about $500. Upon that in Carroll,
the lowest taxed county, and in Westminster
district. whose tax rate is as low as any in the
county, he is taxed So cents on the 800 for
county and II for State, making 7Ocents, and
a tax of SIS. 60. The income tax on 6per cent
81 900 mortgage is but $3.50, or 80 cents less
than upon the $1,000 home. If the home
were in Baltimore, the tax upon it would be
over $500, and the mortgage tax there would
be but $3.50. The average rate ofconnty and
State taxes is about $1.00 on the 500, while
the rate on the income of six per cent. mort
cages is only 4s cents-less than one half
The mortgage income tax ought not to be
repealed, and the member of the Legislature
from the counties who votes for repeal may
as we'll write up his political record and put
.sfinis'' at the bottom, for he will go into re-
tirement