Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1907-05-04
MINNESOTA SHOWS GOOD SENSE.

MINNESOTA SHOWS GOOD SENSE.
The state of Minnesota has takel
the lead In reform which commend
7 itself to the common sense OF ever!
I business man. Beginning on the mrs
! .day Of May all real estate mortgages
I will be taxed at the rate of 6o cent'
per thousand dollars Of value and tn
tax must be paid as a fling fee Wnet
III the mortgage is recorded. In this man
ners every mortgage will pay the sans
s. TAX instead of penalizing the hones
) man with an excessive tax as is ohs
4 sustom in Iowa and many another
ID rate. 1t is notorious fact that less
chan one tenth Of the moneys ana crea-
lis owned in this state are returned 1o1
Il taxation and 1t is in the interest OF la ~
Land equitable taxation to levy the TAX
y as a recording fee.
The Minnesota law is weak in ina
Il the recording fee is too. small. one
\ twentieth Of one per cent is too small al
Il S1ax for this class of property. y
would do no serious harm and Wofh
mo hardship il mortgages escaped TAX
i alton altogether but if they are to pc
f4axed at all as moneys the entire tax \
4 aho,,,ds be levied at the time OF re-
coriing where no mortgage could ever
& escape.
q The trouble with the tax Of two per
cent on moneys and credits in iowa rs
Sthat the tax is so easily evaded lna q
= the untaxed money establishes the
rate OF interest and forces the honest
5tax payer to accept two per cent less ss'
afos his money than the dishonest tax
sbavaY gets which is practically a con-
hf-eation Oh half his income. In the
j lease OF real estate none escapes The
Hit suit Is in Marshalltown, for instance,
lrenss are established at 10 per cent
Rgross on the value Owners allow two
Spes cent for taxes. three for repairs
Hand depreciation and have five per cent cent
Ileft for interest on the es 81 NJ
EE,ya Yyboav is treated alike and rents
A9re established on the same basis to
sall
III the case of moneys and credits
'sthe trouble starts with the money from
fcutside the state It can come IN. mere
III 5 Is and s per cent and escape taxa
'Ation. The money of a resident must
ysf 20 out Of the state where it will
Tescapes an assessors notice Or IT must
Aewades taxation BY deliberate lying and
asfalse affidavits to abe assessor in order
TO compete With the money which Is y
saIoaneds at 51a and s per cent free OF
4axation. Since money loaning breeds
81 ~ easy conscience the great majority
Ipf rlopeys and credits evades taxation on !,
They add their volume to the outside
snacney and help establish rates OF m
karesr based on no taxation at all.
Tllen comes the money OF the banks AM y
(which at certain seasons -helpssto make
&ifnler the same low rates and the fel-s
low who is honest enough to list his
money Is simply compelled to loan at
Nhree and a half or four per cent while
His dishonest neigh5or gets five ana
Is half and six per cent or he Is COM
H3elied to invest his money in some pro
berty on which taxes fall to the honest 70
hnd dishonest alike. One Marshall
Town man has just recently removed
10 California with $4,000. because he
Hid not like the tax ferret. ,*
ME tax on moneys and credits does
not accomplish what was intended by
81 Ii should be revised by the next
Iowa legislature. If it could reach
Everybody alike the borrower would
bay III the same. as. the renter pays the
yeal estate tax. AS it is now, the hon N
slsst man pays it while the dishonest
han helps 10 fix the rate of interest
Very low so as to virtually confiscate
Xne half the honest mans income and
ahe honest man is generally widow
BIZ the defendant heirs ofsan estate. The
sax should be fixed at about one half
BE one per cent and levied as a stamp
lax on the instrument before it be-
Tones valid in law or as recording
ee. .Itswould then hit everybody alike
Ind. being low, would not be SO likely
Is be passed on to the borrower who
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