The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1903-04-04
SATURDAY. APRIL, 1908,
AGAIN THE r1oRTdAdE TAX.


4 AGAIN THE rlORTdAdE \ TAx.
II appears from the New1tYork papers
that the proposed mortgage tax bill has as
II been abandoned. The Introduction OF the
h bin, however has served a good purpose,
sfor 1t has provoked discussion and has
4 brought out in emphasis the iniqudty OF
H ali such taxation. Many articles have
& been printed in editorial columns Of the
y New York newspapers, and also by cor
ii respondents, showing that the mortgage
N tar Is double taxation and that the Dor
" fower pays It. III 5s Il 3g&f5
Any taxation OF q. mortgage on real
# estate. when the property itself is fully
81 taxed, Z says the Journal OF Commerce,
u s.is wrong in principle and ought to be
81 utterly abolished. So far Us it extends
Sslt u double taxation. inasmuch as s the
II tax upon the mortgage, which is an evil
u Hence Of debt, must be derived from the
IL income Of the property. precisely Ike the
81 IL imposed directly upon its assessed
Il value a The man lending money upon this
If Wind Of security calculates upon Q certain
a Increment from the loan which rs deter
y mined By the general rate to 30 derived
/; IRON other Inv estments Of equal safety,
III and II d tax Is to be deducted the rate
e interest demanded will be made to
Il Include it. The borrower. owing and pay pay:
81 nK taxes upon the real estate, must in
. eyitably pay the added tax In the IN
III creased interest rate. #
\ sis We nave SO often made this statement
81 that il seems an unnecessary repetition to
reproduce IL from the columns Of another a!'
,paper. but we would have our readers Ter
as. tee that others take the came view. the
8 Nav York journal OF Commerce is pa
uer that weighs we'll its words and never
makes a positive statement IN matter
J nf business without being able to verify
13 It. Ss, u Z
$yS55 1A$correspondent Of the New York Sun
~ makes the Same point. He says that ~
# pe s cent. OF existing mortgages IN new
ss55 YORK are due. or can be called. That II
E# he mortgage tax bill should pass they
,yo,,ia Be called and new mort gages exc
& iaputed for higher rate Of interest crest oy
81 I per cent where the mortgage IS
81 , .ess than per cent. II at per cent,
q which is the rule regarding farm lands,
u; the mortgage would be called and the
81 Farmer would be called upon to pay the g
Il rharEes Of the landlords also for pre-
rs nardng an agreement OF extension OF the
mo mortgage for, one year. or for new
.sas mortgage for one year: and IN these
4 4 cha RIO. would be included tho State
Al LAX. }8 Il IS
Ssg Is ~ remarkable, indeed. that Democrats
35 viii defend the mortgage tax, We have
I'd from year to year from campaign to cam
,paien. denounced the Republican tariff
,,.sSg t.x because. as we have asserted as
# po,e1tfyely as We could, the tax eventually
Nj came out OF the consumer. IN vain dlo
ri the Republicans plead that the tax was
s;} oaid bv the foreigner. Democrats con-
tended that, although the tax was nomi'
81 nally paid by the foreigner, IT was added
4 n 10 the price OF tho goods, and so eventual
81 " paid by the Consumer, That IS true
The consumer does pay tho tax always
i and in every instance.
~ BY the same token the borrower pays
che mortgage tax. It Is very popular &c
4 talk about taxing the money sharks
Il but in taxing the money sharks" we tax
i5s the borrower. The money shark" has
tha situation In his hand and Will always
protect himself. II there is a tax hi
4 puts it In the interest, and the man wht
pays the interest Is the man who pay
Il the tax This is necessarily true, and s.
IL Is that we have urged the Legislature
Of Virginia to abolish the mortgage tax
and thereby give the borrower at leas
the chance OF getting his money at I
ggs3i lower rate OF interest There Is compeh
ton between money lenders. and II u
the CITY of Richmond. whore the compe
tition is usually sharp, the tax on mort
cages should be abolished. we have NJ
sort OF doubt that the Interest rat
would fan An proportion
The way to get at the money lender
the way to get at the capitalist. as h
l. popularly called. Is to tax his income
n rhat a the source from which Virgins
shonid derive considerable revenue. bu
4nder our present sip-shod system sh
receives tr!hing sum.
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THE SEBRELL BILL.