The Vermont watchman. [volume] (Montpelier, Vt.) 1883-1911, 1904-10-20
AS TO DOUBLE TAXATION.

WhItbublu lIltuuS, ihhh WIN Aoaun
and thinks, and who now expresses
himself with regard to the present
tax system and its injustice, as he
calls it. mhe Journal does not agree
with Mr. Neill, but it realizes that
Mr.. Neill and great may other peo-
pie who have his views honestly
believe that they ara being uujustly
treated with regard to taxation and
that the remedy is simple and easily
put in operation.
The fact is that Mr. Nsill and his
associates are not being robbed as
they believe they are through the tax
law, and that the proposition to
change the tax system over is not so
easily accomplished as at first thought
it appears to be. The person who
buys land aud pays only part of the
purchase price, giving mortgage for
the remainder, is doing something of
his own free will. He knows he will
be taxed for the full appraisal of the
land, but still he takes that course
because he believes 1T is for his in
terest. Once having acquired title
to the land, it is ght that he should
pay taxes on it. 1t is not the look
out of the State that he has not fully
paid for it: he owns it and controls
it and should pay the taxes on it.
On the other hand the man to whom
the land is mortgaged has no title to
il, bu: has personal property to the
amount of the remainder due on the
mortgage notes, on which it is right
lie should be taxed. One man Is
taxed for the land to which he has
title. the other man for the personal
property to which he has title.
This problem has always been a hard
one to solve and it probably always
will be. No tax system works per-
fectly The single taxer says his
system should be given a chance, but
the difficulties of making the change
are too great even were the single tax
demonstrated as the ideal. Iu New
jersey aud Oregon some years ago an
attempt was made to do away with
the tax on the mortgagor and let the
taxes rest pro rata upon the land paid
for and the mortgage. The expert
ments were given up because of the
hardship caused thereby. IT drove
money away from fatm lands until
the very men who had cried for the
enactment of the law cried just as
eagerly for its repeal. 1t was quick
ly learned that it is not SO much
hardship to pay a tax as it is to get
along without the use of money for
farm purposes
In 1880 Massachusetts, enacted law
to exempt land from taxation in so
far as it was mortgsged. Hardly
had the law gone into effect when it
became worse than ineffective through
the Insertion in all mortgage deeds of
a clause providing that the mortgagor
pay all the taxes. and even in case
of possible repeal of the law, that the
mortgagor should continue to pay
the taxes, not only on the full APP
praised value of the real estate. but
on the mortgage also This was a
provision for double taxation indeed.
1t was contract embodie in the
mortgage deed. 1t , could not be
avoided, The practical results was
that this contract created among the
mortgagors class violently opposed
to the repeal of the law of 1880,
because their last estate, under repeal,
would be worse than their first.
Under the law OF 1880. the mortga-
gor continuing to pay on the full value
of the land, he really had to pay more
than formerly owing to the reduction
of the grand list by the taking from
the list of the portion of land unpaid
for. The smaller grand list required
q larger tax, and the mortgagor had
jumped from the frying pan into the
fire. He has been trying to jump
back into the frying pan ever since
but without success. The practical
result of that experiment was thet the
mortgagee, and not the mortgagor,
was exempted from taxation. Pass a
law here in Vermont to exempt land
FROM taxation in so far as mortgaged,
and the result would be the same as
in Massachusetts. Great distress was
caused there and so would there be
here. The man with money to loan
will put it where he can do best witt
it, and he cannot be forced to loan i
at five per cent and pay half or an,
other part of the taxes besides.
In years past many farmers hav'
come to the Legislature with bills il
their pockets. determined to do ava,
with double taxation. The,
have almost invariably been great,
surprised when various facts wer
presented to them, and when investi
CATION satisfied them that they wer
not heinp humbuQQed, they have be