The sun. [volume] (New York [N.Y.]) 1833-1916, 1903-03-11
THE MORTGAGE TAX BILL.
A weIl.known Expert Argues strongly
AGainst IL,


To THE EDITOR OF The suS-Sr: II the
reasons for bringing forward the proposed
Mortgage Tax bill are analysed, a situation
will be uncovered which. for paradoxioal
absurdty would Guido Gilbert and sullivan
comic opera
For years there has been a general concur
renee OF opinion that real estate has been un-
duly and unJustly taxed To promise reiief
from this excessive burden has been the
favorite ante-election pledge Of our candi-
dates for local and State Offices The accom-
pllshment of this end was advanced az one
OF the chief benefits to be derived from COM
plete abolition OF the so called direct state
tax. and on this account Governor Odel
messages on taxation were at hrst welcomed
by the real estate community
1t speedily became vident. however. that
the Governor was unable to devise methods
Of indirect taxation for the State which would
take the place Of the direct levies Of the coun-
ties and which would. at the same time be
borne by other than real estate interests. OF
late, therefore. suggestions for supplying the
deficient revenues Of the State treasury have
been limited TO new forms Of taxing real estate
which have been merely excused on the
ground that the weight Of these new burdens
would be Offset by an equivalent tightening
OF the direct State tax. II 10 no longer pre-
tended that real estate Ia to be benefited. but
II is claimed that It will not be injured. ana
that by the proposed change In the form o.
taxation, an alleged reform 1.-THE ABOLITION OF
the direct State tax can be accompllshea,
ton; for H. the reports which have been a., a..
lowed to leak out from Albany Ia regard 70 s9e
Which ra o actually
real estate to be much more heavily taxed
than ever before.
privileged class OF exempt lenders-
them life insurance companies and SAVINGS
banks. just why there. should be any ex-
emptons. when II 10 admitted by everybody.
including the Governor himself-that II 10 not
the Lender but the borrower who VIII pay tns
hhS daes San these oe asiu
ns MONEY % RSss'd iS Sn = VI they
sufficient funds TO supply tie needs Of bor-
rowers. such might conceivaby be We case
But. as a matter Of fact, these institution
Even IL they were to make an attempt 70
extend 70 their mortsagoTs the en%sp. n0fsr
which the ssf law OF and
demand would render such an attempt irn .i,y
loss. IL impossible TO imagine a dlsrarity
the lender. '" One mans money is as good as
another's and so II Ia OF institutions More.
aver the senileTen having charge Som Q, 's
and savings banks are IN duty bound TO secure
the best terms possible for the Use Of ne m9ney
fions not Y having ,nf half enough money TO 20
around would at once raise their rates 70 ne
highest point at which they could sui get me
business which would amount 10 preci sely
the amount OF the tax imposed upon others.
or onc-half OF per cent. So that immediately
upon the passage Of such an act. all borrow,
| per cent on all their loans
But would this additional taxation, thent
90 to relieve other taxes upon real estate,
Far from Il The insurance companies ana
the savings banks would keep the additional
rate OF interest. because the law, In form,
specifically eIempts them, and the increased
tax which the borrower would pay, instead OF
flowing into the state treasury. would he kept
by the favored institutions "a an enforced
bounty. payable by one class OF citizens Tor
the benefit OF others Ours is n Rovernmcnt
Of equal rights for all and We have not YET
or life IT. surance companies can he so directly
bounty fed nv an exercise OF the taxing power
judge Cooley, in an oft-Ouoted dictnm. once
said that no exemption from taxation cohlu
be justified unless made on some ground OF
public policy such as might Justify pension or
be thought Of direct donations OF the public
funds Of the State OF New York annually TO
our life Insurance companies and savings
banks? The mere statement of such rropo-
sition foreclcses argument
But waving all objections and recurring 10
Of such aIaw7 II the privileged class Of in,
stitutiors lend one-third Of all moneys placed
on bond and mort gage (which think is some
where near the truth then the product ~ the
tax rs received in the state treasury would he
two-thirds OF the impost a. horne by The taN-
PAYERS To that extent therefore, would me
taxes on real estate he actually Increased
Ard this IL the outcome OF the promise TO
MARCH 10 EpG,R J LtvTr.