The Democratic advocate. [volume] (Westminster, Md.) 1865-1972, 1904-04-16
Repeal of the Mortgage Tax.

The mortgage income tax bill has been
signed by Governor War6eld and is law.
The total revenue from this source was about
500, 900, one-fourth, or S25, 900, of which
went into the State treasury and three-fourths
to the City of Baltimore and the several coun-
ties. Baltimore City is largely responsible for
this decrease in the States revenue. Alter
the fire there in the early part of February,
while the City was too proud to accept prof.
cred aid from outside, Baltimore made rush
upon the State treasury. A bill to appropri-
ate $3.50, 600 for relief of distress, bill to give
Baltimore all the tax from liquor licenses, and
bill to repeal the mortgage tax, were sent to
the Legislature. Baltimore did not hesitate
to make tie counties of the State come to her
aid, whether willing or not. The loss in tax
able basis in the city, the appropriation of
$3.50, 200 relief fund, and appropriations to
John Hopkins University and Maryland In
stitute, and the repeal of the mortgage tax
imposed burden of over half million of
dollars upon the State treasury, and the re-
mission of liquor hcesen fees would have
added more heavily to the States loss.
The repeal of the mortgage income tax was
demanded upon the mistaken idea that It's
continuation would keep needed money from
the city. And when the bill came before the
Legislature certain ceunties-Arne Arundel,
Baltimore, Allegany Calvert, Caroline, Cecil,
Dorchester, Hartford, Prince Georges, Queen
Aune's, ST. Mary's and Talbot-asked to be
IL. IL A h.
uniform throughout the State, and the bill
excepting Baltimore and the counties named
caused a loss of $25, 900 to the State.
The counties rot included in the repeal will
fare better than heretofore. For instance,
the mortgage tax in Carroll amounts to about
$1,000 a year-not $3.50, as the loquaeious
Goodwin, of Baltimore City, announced in the
House of Delegates-of which the county re-
tanned about $3.50. Under the repeal law
the county will retain the entire $1,000. Local
gain, however, should not outweigh the inter
est to the State. The tax was an ever in
creasing one, and in the course of ten years
the revenue to the State would have amounted
to fully 500, 200. Having been partially re-
pealed its renactment will be difficult of &C
complishment, and this is the worst feature
of the matter. The tax was the most just
that has been imposed, and the notion that it
drove away capital is mistaken idea When
the bill imposing the tax was introduced into
the Legislature, many money lenders raised
serious objection, and the late Jacob Tome,
of Port Deposit, threatened to foreclose about
81, 0O0, 600 in mortgages on lands in this State.
The threat, however, was not carried out
Before the mortgage income tax was i'm
posed, the capitalist whose money was invested
in mortgages. paid nothing to the support Of
the government that protected him aud fur
nished free education to his children. Was
that fair? And is it not q fact that money
can be borrowed on mortgages nov at a lower
rate of interest than before the mortgage tax
was imposed? Money is of no use unless It
can be employed. All of it cannot be invested
in stocks, bonds and other securities, and
must seek investment in mortgages. And
when properly so invested, there Is no invest
ment so safe. Banks fail, railroads go into
the hands of receivers, trust companies 60 to
the walls, mines deieriora,e or are worked out,
manufactures are uncertain, but real estate
is never lost. Coed bank stocks do not pay
more than Al per cent. dividends, and stock
holders are liable, in case Of misfortune, for
double the amount of their stock. A per
cent. mortgage, taken sith good Judgment.
viii pay more than a per cent. after The in
come tax is paid.
The repeal Of the mortgage income tax, as
to Baltimore and the counties named above,
was mistate, and It's restoration two years
hence should be earnestly urge by all who be-
lieve that people should contribute to the
support Of government.