Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1906-11-29
TAXATION AND JUSTICE.

Much is being said In relation to the
problems Of taxation ut the present time
in view OF the desire to formulate some
method which shall be an improvement
laws at the present time. The tendency
of the whole discussion Is to place en-
phasis on the law which will surely pro-
duce the revenue necessary for the ex-
pense of government and public improve
ments, and to place the matter of justice
In a secondary position.
For example it is argued that real es-
tate should be the basis of taxation be-
cause it can not hide or get away, and
In the end it will pay the tax any way, so
realty might as we'll pay the tax at
the outset. No offset is allowed therefore
against real estate for which the holder
is indebted, whereas the holder of per-
sonal property is allowed An offset for
debts owing because of fear that unless
favorable legislation is forthcoming the
owner of such property will conceal it
somewhere, thus escaping taxation alto
gether.
Now here is the problem which the
legislators have to meet, reduced to It's
lowest terms: A has 5000 in cash and y
has house that is worth $4,000. Both
are honest men and they pay taxes on
the sums named aggregating $4,000. If
the tax is fifteen dollars on thousand,
they pay into the town treasury S2Z5.
Now A buys the house of B, paying ex-
actly what it is worth and giving in ex-
change his 5000 and his note for $500
additional, secured by a mortgage on the
house. Under Vermont's present tax leg
islatlon A is forced to pay the tax or
the house of $3.50 instead of the SIC he pad
before he bought the house although he
| Is actually worth no more than formerly
| On the other hand b is rightly compelled
to continue to pay $50. for he has the
income on the 5000 which he received
from A and later invested as we'll as ~
the other 5000 on which he received in
terest from a.
It is noteworthy, in addition, that undal
| the laws of Vermont the two taxpayers
after the exchange, pay a tax of $500 OF
a total Of $4,000. although there has beer
no increase In the aggregate of value,
as a result of the exchange.
The remedy proposed for this Is to abol
ish the tax on mortgages. The result @
this would be to have A continue TO pa,
a tax of $50 on the house. although h
Is actually worth only 5000, and to ALLOW
b, who is worth $4,000 to pay a tax o
one-half as much or s75
As matter of abstract justice,
should continue to pay taxes on the 49,
he had before he bought the house and ,
should continue to pay taxes on the so,
600 he had before he sold the house, 70
the relative wealth of the two has no
been changed by the transaction. To &C
complish this A should be allowed a
offset for the 5000 he owes on hi
house.
In opposition to this appears the Ian
tax theorist who holds that inasmuch q
the earth is the origin of all produo
and value the land should alone be he'll
for taxation, and should pay no TIA
whatever on his money.
hn IN adu ia CT in, N
asserts that each man should pay take
| according to his Income and II AS hous
should burn down he would pay no ia
: whatever, as the land would bring him II
return, while Il would pay taxes on tn
| $4,000 from which he receives income.
Vermonts law Is thus seen to be some