The true northerner. [volume] (Paw Paw, Mich.) 1855-1920, 1903-05-01
Taxation.


The taxation question is again lead
ing one before the legislature, and the
proposition to exempt all mortgages,
credits. notes and all evidences of debt
from taxation is being seriously dis
cussed.
As an abstract proposition, there is no
doubt that the idea is correct The tax
alton, for instance, of farm for the full
value and then the taxation of the
mortgage on it is undeniably double
taxation, as the interests of the mort
gagee and mortgagor together represent
nothing more than the farm itself on
which the mortgagor is taxed. All eff
forts to relieve the mortgagor from tax
alton on the interest of the MORTGAGE in
the premises have heretofore been futile,
and the borrower, being the under dog
in the battle of life, has always had to
bear more than his fair burden of taxes.
The theory of the new plan is that, as
many credits and evidences of debt
already escape taxation, it would be
more equitable to exempt all, and that
the borrower would reap more than
enough benefit In lower interest rates to
compensate for the higher rate of taxa
ton that would be imposed on lands and
other visible properties
1t is also claimed, and with some force,
that local and private lenders are under
the present system placed at disad-
vantage as compared with non-residents,
life insurance companies, banks and
other loaning corporations whose taxes
are not affected by the number of loans
they are carrying, and that they are en-
abled to reap material benefit in inter
est rates because of the higher rates in
dividual loaners are compelled to get to
cover their taxes.
On the other hand, the fact must not
be lost sight of that the exemption of ev-
licences of debt would take millions Of
dollars from the assessment rolls OF
Michigan and would add very materially
to the rate of taxation on lands and
other visible property-in short, it would
increase the taxes of the farmer and
merchant and owner of village property,
the ones least able to pay, and exempt
the capitalist, who already pays the
smallest proportion of public expenses
In proportion to his wealth and ability
TO pay.
Wbila tha pau SvSten, MIGHT in the
end work no injury to the man heavily in
debt, who should rightfully regain his
increased taxes in decreased rate of in
terest, it would work wrong to another
class, those owners of tangible property
who are not in debt, but whose taxes
would be increased while the money
loaner escaped, and who, not being
borrowers, would gain nothing because
of the decreased rate of interest prevail
ing.
Altogether, The True Northerner be-
lieves it would be wise for the legislature
to make haste very slowly, and not be
anxious to take any property from the
assessment rolls. The fact that some
property already escapes is no reason fol
exempting more. Rather, it would seem
as though reform should come through
lettering the assessment system so that
property will not escape, and will be
more equally assessed.
No one has more sympathy than The
True Northerner for the debtor classes
and if any adequate law can be passed
that will accomplish the exemption o.
the mortgaged interest or indebtedness:
of the borrower, well and good II
would be just, but no past Legislation
has worked out this end, and we do moi
believe it can be done by taking the
money lender off the tax roll entirely.