Herald and news. [volume] (West Randolph, Vt.) 1878-1943, 1907-01-10

way shown by experience to oo P'V-
dnctive OF revenues far in excess OF
any that have been or could be real /
lied otherwise; which means also that
taxing il in such way causes no dis
tress TO ii, or II would flee and be lost,
IL does seem certain that taxing
interest bearing deposits in national
banks will very largely increase the
revenues. The state treasury, assured
", will be benefited by whatever flows
in from this source, for ii has hitherto
received nothing in that direction,
The expectation is that savings depos-
its In national banks will hencelorth
contribute in the same proportion TO
the state treasury that the deposits in
savings and trust institutions do, and
the total revenue will bear such COM
parison to the revenue from these
latter as the deposits OF the one do to
those of the other. Savings deposits
in national banks are quite large, by
the way.
There is no real reason to fear that
taxing national bank deposits will lead
to their withdrawal; indeed, the pres
ent attitude of the banks is the com
, mendable one OF coming forward with
square proposition to pay the tax,
with no compensating deduction in
, interest returns. Ii any national
, bank, now or hereafter, should find
itself unable to do this, probably it
, would lose in deposits, which would
be transferred mot outside the state
a but to other banks within the state
able and willing to pay the tax, so
a that the state treasury would lose
nothing. Our laws are now so favora-
BILE toward the taxing of money that
we invite, rather than repel, it from
other states.
y This question of the best and mos
effective way to tax money has engaged
: long attention in Vermont. In theory
money should be taxed as other prop
erty is. 1t should be listed where tbt
owner resides and taxed to him there
% at the local rate. In practice thi
} doesn't work well at all. The owne
: of the money taxed locally almost il
l. variably contrives TO hide it so that tn,
2 lister fails to find it. The result i
'o that it escapes taxation altogether
ie Not only does it evade its proper bur
y den in this way but in many cases
~ being sent without the state to avoiC
the local levy, it is lost as an upbuild
~ ing force here at home and goes t,
y furnish the motive power tor distan
o. enterprises.
" Some years ago, the state adopted
y in tentative way, the policy of el
u empting from local taxation certai
" amount OF deposits in the banks chal
tered by the state, and of taxing sue
x deposits at low, uniform rate itsel
is Sentiment bore some part in this plar
RS. it being argued that $500 or so {
,rs money owned by the "widow an
,al orphan" ought to be exempt in wa
MS that would encourage leaving it in
,er safe place, rather than promptin
at wildcat investment The schen
it'll worked well all around, except TIL
In widows and orphans became vel
is numerous and included many WELT
is do persons. But it was quickly note
list that whereas money before had fl
at ured as an inconsequential factor
,rk the tax inventories it now yielded
The revenue worth having, and the syste
ho served as an encouragement, rath
rty than a damper, to bank deposit
Ter Year by year the income increase
&C. The exemption limit was by degre
ro- raised to $780, then TO $4,000, al
+ it finally, at the recent session, was pra
My tically removed altogether, so tn
lily now person can place not more tn;
adj $4,000 in each one OF the savings ban
and trust companies OF the state wit
out paying taxes on it, the bank
,la. each case paying the state tax thereo
the The effects OF this system are seen
led a growth in savings deposits of ST.
ma 100000 since 1900 only; in an increa
e"h of SQ1 600 in state rpypnuas from IN,
cry - Vo.'ooo - '.",e Nv n'es iioun Tue
taxation MEANWHILE in total savin
deposits of $52,0S7 500. 0S; and an
90. come from state taxation there
ey'ss amounting to S343, 495 40, or well to
and 49,,
is aiu haii Vi INC oolai revenues HOWL
,een- into the state treasury, doing aw
ms MS with the necessity of a direct state t
which would amount to eighteen Gel