The Intermountain Catholic. (Salt Lake City [Utah] ;) 1899-1920, 1906-10-20
TAXATION OF MORTGAGES.


1t is not the policy of this paper to engage in
partisan politics We leave that to ouc energetic
and disinterested contemporaries, who, i'll the ex-
cess of their patriotism, call each others candi
dates rascals grafters machine politicians, ETC.
We do not feel like disputing with them; in fact
in order to be agreeable we would be willing to
admit the truth of the assertions. However, in the
coming election there is question to be voted up
on which vitally affects every person in Utah. and
which, strangely enough appears to be almost en-
tirely overlooked. 1t is proposed amendment to
the constitution of the state, which, if carried ex-
empts mortgages from taxation. Under the con-
stituton all property must be taxed at its fair
cash value. If this amendment is carried it would
read in effect, that all property except mortgages
must be taxed.
As rule, it is the wealthy people who have
money to lend The average citizen has about all
of his money invested in his home and furniture
He is the who is working every day, produc-
ing something, adding to the wealth of the COM
munity. The man who lends his money at interest
is not producer. He takes no chances, he has
plenty of security, and he merely enjoys himself
while the borrower works If we relieve the len
der from the obligation of paying taxes on his
wealth, we add Just so much to the taxes of the
poor man. because it requires certain amount of
money to properly conduct the government of the
cities, counties and state The rich lender is de-
pendent on the proper and orderly conduct of the
government for the protection of his wealth. and
just why he should be relieved from the necessity
of paying his proportion of the cost of govern
ment, is not clear
When the breadwinner of the family dies the
widow and orphans must pay an inheritance tax
on the little property he leaves. When the wealthy
money lender dies and his safety deposit box is
found filed with gilt edge Understanding mort
cages, there could be no tax on them, if this
amendment is carried. The men who risk their
money ih mercantile and manufacturing jenter
prises, Which if successful result in the upbilding
Of the community must pay taxes whether they
succeed Hr not. The effect of this amendment t
would be- to discourage such enterprises, and en-
courage every one to lend his money at interest |
taking no risk and avoiding taxation
Under this proposed amendment. it is not left
optional with the legislature to tax mortgages or
not, as it may deem wise. The legislature would
be absolutely prohibited from taxing them Many
ingenious reasons are given to show that this ex-
empt1on OF mortgages from taxation is really for
The beneht OF the poor people, who never owned a
mortgage, and whose only connection with mort
cages Is with the paying end of the transaction
1t Is reasoned that if Tom Jones owns house and
OF worth $1,000 and Banker Smith holds mort
gage on it of $780, that it would be doublee taxa
ion to tax both Toms house and bankers mort
rage. That being so, one of the parties must be
elleved from taxation. Why not relieve Tom?
That would really look like helping the poorer fell
ow That probably never occurred to the trainers
Il this amendment. Under the California law,
Banker Smith would be taxed on his $500, and the
mount of that tax would be deducted from Tom
ones tax Under our proposed amendment, how
yer, banker would be entirely relieved, and Tom
-ould pay the whole thing. Tom might not be able
0 see clearly wherein this amendment would re-
ound to his benefit, because to his unenlightened
ind it would appear that he was doing all the tax
aging, and the rich man was getting the benefit
the government without paying anything there
Or.
There is state in the union with such pro-
sion in Its constitution, and voters will do we'll
consider it carefully before casting their ballots.