Iowa County democrat. [volume] (Mineral Point, Wis.) 1877-1938, 1903-01-29


the marked inequality IN the results
accomplished by local assessing Off
GERS as between different portions Of
the state"
Proceeding in its argument against
the taxation of credits the report lays
down the conclusions upon which the
general verdict Of condemnation
against the system is predicatei as
follows.
"lN Laws requiring the direct tax.
alton Of credits as property without
corresponding reduction in the assess,
ment OF the property Of debtors ueccs.
sarily result in duplication of values
and double taxation, and cannot fail to
produce inequality and injustice, SO
far as such laws may be enforced.
GU Such laws are incapable OF en-.
forcemeuU, except partially,
go When partially enforced, the
injustice to those who are taxed is
much greater than il all credits were
taxed alike; and this whether the bur
den is Lorne by the few who are taxed
or is shifted to their debtors,
(N Incidentally, the receptions
and other practices rosorted to in
eNadmg the attempted enforcement OF
such laws have a degrading moral eff
feet in the community,
Co Laws permitting the amount of
credits assessed to be deducted from
the valuation Of the property of debt.
tors do away with the evil of double
taxation and for that reason are ind.
nltcly preferable to laws which do not
permit such deduction.
g But under laws permitting such
deductions the tax imposed upon the
creditor is ordinarily shifted to the
debtor in the form of higher interest
or otherwise, with something added to
cover the creditors risk.
ca Laws designed to prevent such
shifting are impraCticable and serve
to !njure rather than to benefit The
debtor the only person for whose pro,
lection they are intended,
After exhaustive argument the COM
mission says: "In considering this
question it should be horne in mind
that If double taxation is to be COM
pletely avoided the suggested deduc,
lions in favor of debtors will be exact
ly equal to the amount of credits as
sessed, and therefore no greater ag-
gregato "of property would he AS
sessed from taxation under such pro-
1,.,
If credits were wholly omitted from
taxation and the property of debtors
assessed without deductions As pre-
ciseIy the same aggregate of prop
erty' would be assessed under either
plan, II follows of course that those
who are neither debtors nor creditors
would have no greater burden under
the one plan than under the other The
proposition, then, is one affecting
debtors and creditors only ami there
fore the real question Is whether the
legislature shall interfere between
debtor and creditor and attempt by
law to determine the portion of taxes
which each shall pay on account of
property in which both are interested
or whether the state shall look only
to the posscssor of the actual proper
ty for the required revenue, leaving
the adjustment of the burden between
debtor and creditor to be worked out
by natural economic laws. In other
words the proposition to tax the cred
itor directly Is not to secure additional
revenue. nor to increase the total
amount of property to be assessed SO
as to lessen the burden of the nOnin-
debted property owner but solely to
benefit the debtor-to secure as be
tween him and his creditor, If pos5l.
bic, a more equitable adjustment OF
the tax burden to be imposed on ac-
count of property in which 10th are
interested than would be accomplished
by the natural laws Of trade and com
morce without arbitrary legislative in
reference
From the views expressed on the
taxation of creditors the second as
sistant commissioner, Nils p. Haugea
dssents in the following language
Il agree as to ali the foregoing re-
port except so much thereof IA treats
Of the taxation and recommends the
exemption Of credits. ! dissent from
that part Of It which recommends that
credits be exempted from taxation,
my reasons for such dissent being In
part as follows:
First. The report itself howsthat
with the supervisory system provided
in 1901 credits have been assessed
more fully in 1902 than ever before,
and | cannot agree to the prediction
made in the report that this standard
win not be maintained On the cor
Tary, / believe that with the export
ence gained and with a better know;
edge Of the law and the means Of its
enforcement, assessors and super
vIsors Of assessment will make much
fuller assessments of credits in the
future.
Second. I 10 not agree to the
broad proposition that credits are not
property There seems to be differ
ence of opinion among economists on
the subject.
Third. No state has as yet OK.
cmpted credits and the step would be
tt,ftbotIt urrradnpt IN this country