The Bennington evening banner. (Bennington, Vt.) 19??-1961, 1908-09-02


law permitting Offsets to be made
against all taxable personal property,
was first enacted in 1912 but the
stringent provisions of the present law
on the subject did not appear until
1880.
Under this law, taxpayers, except
Inon-residents taxable only for real es-
tate, are now required to answer, I'M
der oath, searching inquiries as to
their taxable property and seemingly
every precaution is taken to avoid I'M
certainty and evasion respecting the
returns of each taxpayer as to the
kind and class of his taxable estate
and his offsets, if any.
The usual results, which experience
shows will follow the enactment of
drastic laws designed to reach all
classes of taxable estate, occurred in
Vermont When this statute first
went into effect, the assessed value
of real estate increased from $71,114.-
747 in 1880 to $102. 43Tl02 in 1881 and
the assessed value of personal estate
taxed from $l5,OS7 ,262 to $46,S96.967
Since that time the assessed value of
real estate has steadily increased and
in 1907 was S139,7O9,7O2 but the ass
essed value of personal property taxed
has diminished and in 1907 was S44,-
l13S,36S. Its highest appraisal was in
1857 at $50,060,l71 and its lowest in
1900, $40,SS4,193
II surely cannot be doubted that the
value of taxable personal property in
the state has largely increased since
$50 and therefore the fact that the
Iamount thereof now taxed, is over
l$2 100000 less than it was then, is
tartling.
During this period the assessed val
ne of real estate has increased 80 per
cent, and the assessable value of per-
,sOnal estate must we believe have in
Creased in a greater ratio.
The only conclusion that can be
drawn from these facts is, that the
debts of the tax payers have so in
creased that the increased value of
personal property has been thereby
overcome, or there Is evasion, conceal.
ment and fraud practiced by the tax.
payers. We have no doubt the latter
is the case and we believe that, with
the business prosperity we have en-
Logged since 1880, there have been ad-
, Ided to the personal property of the
state many millions of taxable estate
which the law as administered now
fails to reach.
1t is common knowledge that great
frauds are practiced under the Offset
system; fictitions offsets are frequent
ly claimed and allowed and offsets are
often created for the express purpose
of avoiding taxation. Every lister
can recall offsets claimed by taxpayers
' to be due to a non resident, or to q
+ relative or other person, the truthful
+ ness of which claim could not be as
e certained, but the facts known war
e ranted the belief that 1t was fraudu
/ lent
+ Taxpayers, before the first day OF
J. April, borrow money which they put
= in their pockets, Offset the note giver
for the money against their persona
( property and at an early date pay the
/, note. The money they do not put il
) the list. Habtually, in the month o.
l. March, they purchase goods out of the
state for delivery after April LIST ant
l. then Offset the debt so contracted
r against their personal property Will,
the property so purchased is not il
l, our jurisdiction
d One illustration, elsewhere men
o toned, is worthy of repetition here.
a, taxpayer, as shown by his inventory
h for 1907, owned merchandise apprais
a, ed at $4,000 and bank stock at $4,000
0. In his inventory ne made oath that OIL
o. the first day of April he was owing TO
a, merchandise to parties without tn,
1t state over $4,000 so that his stock il
st trade, $4,000, and the bank stock, SIS
0O0 escaped taxation.
N Numerous similar instances nigh
be cited and many other methods o
* evading taxation under the Offset lay
n. named.
To the honest taxpayer and Their
III are many in this state, the Offset Law
works great injustice. He pays upol
what he ought, while his dlshones
AZ neighbor, by making false oath, ma
n escape taxation altogether, althoug
eft Outlines far better able to pay tina
the honest man.
is It is not too much to say that tn
le offset feature OF our law Invites pc