Orleans County monitor. [volume] (Barton, Vt.) 1872-1953, 1908-12-16
THE TAX PROBLEM
CONTINUED FROM PAGE ONE

themselves as to the merits of the |
measures.
We may start with fact conceded
by all that there is something radically |
wrong with the present system or it's
administration. Everyone az DIM is
that taxes are not equitably distribut-
ed at present. The most bitter OPP
ponents of the proposed measures
BASED their opposition upon the theory
that it was legislation in favor of the
rich man as against the poor man.
They cited instances of poor, hard
working young men IN their respec-
tive towns who had bought farm and
run in debt for it and had further in
creased their debt to stock that farm.
Perhaps the best illustration of this
was made by an apparently honest
member who cited an instance in his
own town, and by the way there are
thousands of just such instances
throughout the state. 1t was like this
"A young man had saved $1,000.
He purchased farm at $4,000, paid
in his $4,000 and gave a mortgage for
the balance. He then purchased stock
and tools to the amount of $500. The
totalI amount of his property was $500.
The total amount of his debt was $500.
The tax rate in that town was $3.50.
If offsets were abolished this poor
young man would be compelled to
pay taxes on $500, about three times
as much property as he really owned.
That young man came to the represen-
tative and begged of him to fight
against the offset bill. This IL
lustration formed the basis of three
fourths of all the arguments made
against the bill, and it was because of
such cases as this that the representa-
tives feared to vote for the bill and
| then go home to their constituents in
farming communities. The records
| show that three-fourths of the votes
| against the bill were by the members
| from small towns in farming commu-
| mites.
Now then let us take up this young
mans case and see just how he would
stand under the proposed measure.
Under Present System
Taxes on farm alone $50.
Interest on $500 at per cent $1,000
Total interest and taxes $4,000
Under New System
Taxes on farm $50. 90
Taxes of personal property 22.5O
Interest on $500 at five per cent IT'S. 90
Total. interest and taxes $257.5O.
It will be seen by these figures that
although the young mans taxes are
$3.50 more than before. his interest is
$500 less, the new system therefore
being to the young mans advantage
by $3.50 per year. And this, mind
you. is without taking into considera-
ton reduction of the tax rate caused,
or made possible, by the increase of
the grand list which must necessarily
follow if all Offsets are abolished.
Although nearly every opponent of
these tax measures admitted that
there would be reduction in the rate
of interest. some of them were skepti.
cal. Now in considering this offset
measure fairly it becomes necessary
to also consider the fiat rate on intang.
ibles bill which accompanies it. This
flat rate bill provides that intangible
property, viz. notes. bonds, mort.
cages and evidences of debt shall be
taxed at a uniform rate of one-half OF
one per cent. After we see the posi-.
ton of the creditor under the new sys.
tenn 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 whe
holds the mortgage is anFhonest mar
and is now paying taxes on the mort
gage as is provided by law.
Under Present System
Present income at per cent $2lO. OF
Taxes on mortgage at $50 So. 81
Net income on investment Sl57. e
Under New System
Income on $500 at five per cent
S175C(
Taxes atone-half of one perl cent
17.5(
Net income on investment s157. sc
1t will be seen by these figures. arc
we think our arithmetic is correct, that
the young poor man saves S12.5O el
year under the new measure, and that
b;S crod54or raooivac ov ao4l,y +bo c,,,,1