Herald and news. [volume] (West Randolph, Vt.) 1878-1943, 1908-08-06
THE TAX REPORT.

As was predicted, the special taxation
commission in the pursuit OF its investi-
cations early discovered the existence OF
woefully lax and faulty conditions in the
appraisal OF property, the filling out and
return of Inventories condition that
demands immediate reform il the spirit of
the state constitution is to be carried out
and the burdens of government equally
borne. The result OF undervsluation is Q
higher tax rate and an uneven and un
true tax. Whether the recommendation
of q state commission with supervisory
powers over the listers and authority TO
equalize their appraisals can be carried
through in the face OF the outcry certain
to be raised that the home rule of the
people is being invaded, or whether such
a system would work out well in practice,
are questions that will come up later.
The urgency for some change in meth
DDS no one can doubt.
Practically all the recommendation in
the commissions report looking to a
more efficient local administration OF the
law, are so wise and sensible as to chal-
lenge criticism OF these, electing listers
for terms of three years, the terms to ex-
pire one each year, is among the best.
When this comes we shall have stability
and experience, now sadly needed.
The main feature of the report is the
Recommendation that the present privi-
lege Of allowing debts owing in Offset TO
personal property holdings be stricken
out, and that all tangible property be
taxed to the owner or holder. This
would place real estate and personal prop
erty on exactly The same basis, with no
offsets allowed against either. This is
preferredto the alternative of allowing or
erty. 1t would result in a tremendous
increase of taxable property, would cor
respondingiy decrease the tax rate and
would prevent many abuses that now ex-
ist. 1t would benefit the class who are
free from debt, largely at the expense Of
those who owe, or claim they owe, and
have personal property that they now or
set. 1t would make all persons holding
all kinds of tangible property pay taxes
alike-those who owed for it. as much rs
those who owned it clear. Naturally,
such proposition will meet with opposi-
tion from the debtor classes, who feel
that their lot is hard enough now. In
stead of doing away with the hated dou-
BILE taxation, this abolition of offsets
would heavily increase it. The debtor
cannot possibly profit enough through
the indirect reduction of the tax rate to
compensate, since it is he who is making
the reduction possible, and all classes
share alike in it. The creditor, on the
other hand, pays no more than at present
on the sums owing him, but the net re-
suit is stretching the blanket of double
taxation from real estate only to personal
estate also. 1t would be a heavy blow
to merchants, manufacturers and many
farmers to lose their offsets and have to
pay taxes on every dollar appraised to
them, even though they are doing bust
ness largely on borrowed capital and pay
ing heavy interest, while their more for
tunate neighbor who is clear of debt pays
no more on the same appraisal. 1t is q
favorite remedy for present ills to say,
"Abolish Offsets" but it has its draw
backs.
Another important recommendation by
half the commission-the others disagree
ing-is that all forms of intangible prop
erty, like stocks, bonds, notes, securities,
J also savings bank deposits, be taxed 1t q
J uniform rate Of one-half per cent, the
same to be paid to the state, presumably.
1t is claimed with some reason that pres.
} ent methods Of taxing these forms Of
property are ineffective, and that bettel
results would follow . uniform system
! and rate, as is done in some other states
, A divided report on . measure Of this i'm
J portance does not carry . very heavy
weight, but this proposition, in some
} form, really has much merit.
The next legislature will be . very
, busy body IL it takes up this question
early and works ct il diligently. II any
, thing can be contrived more satisfactory
than We now have, BY all means Let 1t b