St. Johnsbury Caledonian. [volume] (St. Johnsbury, Vt.) 1867-1919, 1908-12-16
ON small towns in farming communi-

under the present law aud how he would
stand under the proposed measure.
UNDER PRESENT SYSTEM.
Taxes on farm alone, 5000
Interest on $4,000 at 6 per cent 21O.00
Total interest and taxes, $4,000
UNDER NEW SYSTEM.
Taxes on farm S 60 90
Taxes of personal property, 22.50
Interest on $500 at per cent 1900
Total interest and taxes, $257.5o
1t will be seen by these figures that
although the young mans taxes are
500 80 more than before, his interest is
$50 less, the new system therefore being
to the young mans advantage by S12.-
so per year. And this, mind you, is
without taking into consideration a
reduction of the tax rate caused, or made
possible, by the increase of the grand list
which must necessarily follow if all off
sets are abolished.
Although nearly every opponent OF
these tax measures admitted that there
would be a reduction in the rate of
interest, some of them were skeptical.
Now in considering this offset measure
fairly it becomes necessary to also con
slider the fat rate on intangibles bill
which accompanies it. This fat rate
bill provides that intangible property,
viz: notes, bonds, mortgages and evi-
dences of debt shall be taxed at a uni
form rate of one half Of one per cent.
After we see theposition of the creditor
under the new system and under the old
we will see that the claim of reduced
rate is not only reasonable but probable.
We will now take up the case of the
man who holds the mortgage on this
young mans farm and stock. But you
must bear in mind that in this case we
will suppose that the man who holds the
mortgage is an honest man and is now
paying taxes on the morris age as is pro
vided by law.
UNDER PRESENT SYSTEM.
The present income at per cent $4,000
Taxes on mortgage at 81 so $3.50
Net income on investment S157.5o
UNDER NEW SYSTEM.
Income on $4,000 at five per cent, S175.nO
Taxes at one half of one per cent, 1850
Net income on investment S157.5o
1t will be seen by these figures, and we
IL 1. 1. 20, t1at . he
poor young man saves $3.50 per year
under the new measure, and that his
creditor receives exactly the same net
income. II this creditor puts his money
in the savings bank his net income from
the best bank in the state would be only
| $140, or $3.50 less than if placed upon
good real estate security at . per cent.
! Judgment knows that if mortgages were
not taxed today that money could be
hired upon good real estate security for
5 per cent. Every man of experience
knows that money is loaned today
upon real estate security at per cent.
If the borrower will take a bond for a
deed instead of taking a straight deed
and giving back a mortgage That
proves that If man can loan his money
on good real estate security SO as to net
himself and one half per cent. or
per cent upon his investment he will dc
so instead of putting his money in the
savings banks where at most it can net
hun but per cent. Then, too, tn,
figures given above prove that the me-
income under the new system at pei
cent. will be as much as the net incom,
under the present system at 6 per cent
These are the conditions in a tow
where the tax rate is only $3.50 bu
there are more than 140 towns in tn
state where the tax rate is less and onl,
about. 100 towns where the tax rate i
more. Less than a of the towns in tn
state have a tax rate OF $1.75. 1t ma,
be we'll to consider the case of the younj
man cited above supposing he lives il
Addison county where the tax rat
averages about $1.25 and yet IA of tn
representatives from Addison count
voted against this bill
UNDER PRESENT SYSTEM
Taxes on farm at 1925 S 500
Interest on $500 at per cent 200
Total interest and taxes $500. o
UNDER NEW SYSTEM.
Taxes on farm $ 500
Taxes on personal property, 1877
) Interest on $4,000 at 8 per cent 1850
Total interest and taxes $2437
The advantage to the young man i
! Addison county would be the sum {
$16.25.
Bear in mind through all this that til
( young man is honest and that the ma
who loaned him the money and took til
? mortgage is also honest and we will st
1 how the man who holds the mortgae
e will be benentted by the proposed me-
: system.
, UNDER PRESENT SYSTEM.
Present income at 6 per cent, $21oC
Taxes on Mortgage at $1.25, 43.7
Net income, $166.2
UNDER NEW SYSTEM.
t Income on $4,000 at per cent, $3.50
! Taxes at one-half of per cent, 17.e
e Net income. $157.g
!. 1t will be readily seen that under Il