The Bennington evening banner. (Bennington, Vt.) 19??-1961, 1908-09-30
Remedles suaaeeted.

report OF the commission on double
taxation:
Remedies Suggested.
First, the commission is unanimous
IN its suggestions for a better admin.
istration OF the tax laws, as will APP
pear by the majority report.
Second, we believe that all taxable
property should be taxed once and
only once, In each assessment, whet-
her the property taxed is situated
outside the state or within, II a resi-
dent Of the state owns @ savings, bank
deposit located and taxed outside the
state, 1t ought not to be further taxed
here Many other Illustrations might
be cited
Third, we recommend the repeal Of
the law allowing Offsets for debts oV-
ing on condition that money loaned
on mortgages on both real and per-
sonal estate located within the state
at a rate OF interest not exceeding
four and one half per cent per annum
shall be exempt from taxation to the
amount of the listers appraisal of the
security, no exemption to be made
unless the security is taxed. To
guard against possible frauds no mort
gage should be exempt unless record
ed, and made payable in not less
than one year, and statement
sworn TO by both mortgagor and
mortgage filed, showing the rate of
interest to be not over four and one
half per cent.
In this plan we would include the
exemption of savings banks and trust
companies from the payment of the
7-10 per cent. tax on their deposits
loaned on mortgage within the state,
where the rate OF interest charged
does not exceed four and one half
per cent. We also recommend the
exemption from taxation OF notes and
bonds of municipalities within the
state when the rate Of interest there
on does not exceed three and one
half per cent. per annum substantial.
ly as the law now provides.
In the consideration of the exemp-
ton OF loans as above stated we
recommend the repeal of the law ex.
empting personal property from taxa
tion on account of debts owing.
Fourth, we recommend that state
tax be assessed upon the property
and corporate franchise of each per-
son or corporation owning or operat-
ing a railroad located in whole or in
part within this state, at the average
rate levied upon property throughout
the state, to be ascertained by divid-
ing the total amount OF taxes levied
by the total appraised value of prop
erty and polls entered In the grand
lists. The state tax commissioner
shall ascertain the rate by the above
method, and shall appraise such prop
erty at its full and true value In
money
The law granting to railroads the
option of payment of taxes upon their
gross earnings instead OF upon the APP
lpraisal is inequitable and unjust, and
| should be repealed. The present
law discriminates in favor OF the cor
poration, allowing II to pay taxes at
a rate much less than that paid by
the farmer and other real estate
owner. We believe such discrimina-
ton TO be in direct opposition to the
Vermont Constitution. If taxed at
the average rate paid by other prop.
erty,-l60 per cent. on the grand Est
the railroads of this state would
pay 1852, 775.36 per year In taxes, on
their present valuation. This would
be sufficient to provide the state
treasury with the $I75,2lS.1l paid two
years ago by the tax on gross earn.
ings of railroads, also to pay the state
school and state highway taxes now
paid by the towns amounting TO lS
per cent, or 1894, S52.69 annually. In
addition the sum of $4,000 per year
would remain, which might be applied
to the further support of schools
and highways.
This basis of corporate taxation
would not only be Derfec ly fair and
equitable, but It would also eliminate
the necessity Of insulating legal pro
ceedngs for the collection Of the tax
on gross earnings, recently found
necessary by our attorney general
We most vigorously oppose and pro
test against any proposition to tax
Intangible property at uniform rate
lower than the average rate of taxa
ton In this state. This would mean
a low rate for the owner of money
stocks, bonds, mortgages and securi'
ties of many kinds, in snort for the
wealthy classes, while the working.
men, the farmer, the owner OF live
stock or of the village cottage, con
tinue to struggle under the burden
averaging 100 per cent. Of the grand
list and which ought in justice to be
borne equally by all taxpayers.
| We most earnestly advocate q uni
form rate of taxation on all classes OF
property, believing that anything
else is in opposition TO the express
declarations of our state Constitution,
other states, notably Massachusetts
have recently considered this subject
at great length, Sn6 the Supreme
Court of Massachusetts mas declared
the uniform rate unconstitutional.
Income Tax.
We believe that all persons should
pay taxes according to their faculty
and ability to pay, and that those en-
joying large incomes, although not
owners of any visible property
should pay taxes according TO their
ability, and we therefore recommend
graduated income tax, to be paid
into the state treasury.
We do not favor reducing the rate
of taxes now levied on the average
deposits in savings banks, except as
above stated
Except as hereinbefore stated anC
with the qualifications herein ex
pressed we concur in the findings
conclusions and recommendations