The Bennington evening banner. (Bennington, Vt.) 19??-1961, 1908-09-29
TAX COMMISSION REPORT
Continuation Of Report Submitted to
Gov. Proctor.


Continuation Of Report Submitted to
Gov. Proctor.
Following is a continuation of the
report of the commission on double
taxation:
No tax Is paid upon the share OF a
husband and wife, father, mother,
child or adopted child unless the
same exceeds $4,000, and no dis
tributiye. share is taxed unless II ex-
ceeds 81 900
Many more wealthy men reside In
Massachusetts than In Vermont so
that, in order to render such tax
both just and productive, the limita-
lions as to the amount OF the estate
and the distributive share TO be taxed
should be different here. But we be-
lieYe that when Vermont needs adj
dltional revenue, there is no better or
more lust source from which to OBJ
tain the same than to tax the direct
heirs of a decedent's estate within
proper limitations. We think no dis
tributive share or legacy OF less than
$4,000 should be so taxed. With this
or such other limitations, as the legis'
lature in its wisdom might make, we
believe that II more revenue is requir-
ed for state purposes, this is one OF
the best and most available sources
from which to obtain the same.
We make no extended argument as
to the equity or reasonableness OF
this tax. This subject has been con-
sidered of late years by the best eX-
perts on taxation in this country; II
has been considered by numerous leg
islatures and tax commissions, and 1t
has almost universally been deter
mined that a direct inheritance tax
is a proper and legitimate source of
revenue. Under the present collat-
eral inheritance tax, by far the great
er number Of estates, and especially
! the larger ones which could most
easily bear the burden, escape togeth-
/ er.
Foreign Corporation Business Tax
Under the present law foreign cor
porations which do business in this
state are not taxed except by an an.
nual license fee. We think they
should pay business tax to the state
in proportion to the amount of their
capital and business In the state.
They come here in competition with
our own citizens and corporations.
There is no constitutional, legal or
moral reason why they should not be
put on level with our own corporal
ions and be made to contribute their
! Just proportion to the support of the
government whose protection they
seek.
Such tax would bring in consider
able revenue to the state, and would
be only reciprocal, as corporations or
ganized under the laws of this state
and doing business in other states are
generally required to pay a business
tax there.
Taxation Of Timber and Timber Lands
Another subject of taxation which
includes more than the matter of rev
enue. has been suggested to us, by
citizens interested in our forests
The danger that these forests may
be stripped and our mountains laid
bare, resulting from the great demand
for lumber that has existed during the
past few years, mas been a matter OF
wide spread discussion. and earnest
consideration by those most interest.
ed in the welfare or Vermont. This
subject has been presented TO us with
much force, logic and reason II is
urged that our timber lands ought to
be fostered and protected; that we
should not only preserve our forests
in order that great evenue in the way
of timber and wood may be derived
from them, but that the water flow
Is much influenced by the amount of
moisture that is retained by the for
ests at the sources of our streams on
the mountains; that our manufacture
les depend upon a steady flow of wat
er; and that the cutting each year of
large amounts of timber from our up
lands may be detrimental to the
4 health and prosperity Of the people of
the state of Vermont.
We acquiesce fully in these argum-
ents and believe that some steps ought
to be taken, some progress made in
the line of preserving these forests,
not only for the timber which they
can be made to produce, but for the
health, happiness. and prosperity
which they do and may bring to the
people of this state.
II has been recommended that land
devoted to forest growth alone, and of
no practical value for other purposes,
be appraised at the value which il
would have If recently and severely
cut over, disregarding the timber up
on it, and that to compensate for this
decrease in the grand list, tax be
assessed upon the timber when cut
from such forest lands. A tax of a
small sum per thousand feet for lum-
Der, with such exemptions as might
be necessary for the owners own con-
sumption, would yield very consid-
cradle revenue.
It is urged with much force, that the
increased value of this land has come
not from any effort or service of the
owner, but that 1t is due to the great
increase of wealth and population and
the growing scarcity of lumber prod
ucts in the United States, and that
this increased value, which Is known
as unearned increment, ought to be
reached by taxation.
1t is further argued that this meth
cd of taxation, will encourage the
owners of timber lands to allow their
forests to mature. that the forest
lands will not be stripped, that the
beauty of the scenery will not be des-
troyed, and that timber will be cut
only as a matter of husbandry.
A plan of this character would tend
to produce these desirable results
and at the same time bring a large
revenue into the treasury either OF
the town or state as the legislature
might determine.
I This matter should receive the con
sideration of all thinking men who
are interested in the welfare of this
state Ii not only interests the own