The Barre daily times. (Barre, Vt.) 1897-1959, 1908-07-29
TO REGULATE TAX EVILS.
COntinuod irom ilrst page.

error that so.called double taxation ex
lists, and the same injustice results there
from, whenever credits Of any nature
are taxed without being offset against
tangible property Of debtors,
The report fluids that two supposed
remedies are frequently suggested il
this state, viz; To tax the mortgagee''
interest az real estate, his credit TO b,
otherwise untaxed, and the mortgagol
TO be taxed on his equity onlyi TO ex-
ompt from taxation mortgagcd loans
bearing interest at specified rate OF
less.
These propositions are carefully an
alyzed and it is shown that they would
fail to relieve the debtor class and would
probably introduce greater evils than
now exist.
Only two complete remedies, IL is
stated, can be suggested; TO tax only
tangible property. TO allow offsets
against all property, both real and per-
sonal. Both Of these propositions are
condemned.
Certain important facts are stated
which show that the evils resulting
/ from this phase of our taxation system
are exaggerated.
IL is also shown that the farmer suf-
fers a far greater injustice through the
escape OF large amounts OF personal
property, both tangible and intangible,
of ether taxpayers by fraudulent offset,
under APPRAISAL, eoneealment and evasion.
These evils, it is hoped, will be largely
diminished ii the recommendation OF
the commission are adopted. As a re-
suit the grand list win be greatly in
creased and the rate Of local taxation
reduced. This reduction will bring sub
stantia relief TO all who now paying on
all their taxable property.
Messrs. Pierce and olmsted differ from
the rest of the commission as to double
taxation and make q recommendation
stated below.
The subject of Offset is discussed at
some length. II appears that only five
other states admit Offset against all
tangible personal property. Offsets have
been increasing in this state, the amount
allowed in 1907 being about $4,000, 600.
In the same year over S2,0O00O0 less
personal property was taxed than in
1881, when the present law went into
effect, and S6o00,000 less than was taxed
twenty years ago. Instances OF fraud
and evasions under the present law are
given The opinion is expressed that
the only logical system OF Offset Is to
permit debts to be offset against real
estate as well as personal property,
which is believed to be impractieable.
II is believed that the repeal of the OFF
set law would add more than S40,OOo,o0
10 the grand list and result in SUBJ
stantial decrease in the average rate of
local taxtion.
Four Of the commission recommend
the unconditional repeal of this law,
while Messrs. Pierce and 0lmsted rec
ommend the repeal upon condition that
money loaned on mortgage for a time
not less than one year at rate OF in
terest not to exceed four and one half
per cent. be exempted from taxation
The other members of the commission
are opposed to this last exemption
Messrs. Barber and Hitchcock recon-
mend that substantially all intangible
property, such as stocks, bonds, notes
and other securities, including stocks in
foreign corporations, be taxed at a uni
form rate throughout the state of five
mills on the dollar of the appraised. This
plan would reduce TO five mills ON the
dollar the tax paid by savings banks on
their average deposits.
Mcssrs. Pierce and 0lmsted oppose
this recommendation. Mr. Slack agrees
thereto, except as it applies TO stock
in foreign corporations taxed where the
is located MIR. Senter, while
agreeing with the first two members
that low uniform rate Of taxation on
this class Of property is the most prac-
teal and just system, is not fully per
suaded that the time has como to adopt
the plan to the extent recommended.
He recommends that such debts only
as are secured by mortgage upon real
estate in Vermont without regard 70
where the mortgagee resides, be taxed |
to the mortgage and paid to the town |
where the land lies at the uniform rate
Of seven mills on the dollar.
There il full discussion Of the tax
alton Of intangibIes in the main report. |
1t is pointed out that the attempt to
tax this property at the same rates at
which tangible property is taxed, every !