The Bennington evening banner. (Bennington, Vt.) 19??-1961, 1909-12-22

more than they are worth, while
others can't and don't and won't pay
on as much as they are worth while
the law remains as it is. The wit of
man has never yet devised a system
of taxation that would bear with
equal ease upon all, nor that was not
thwarted in its enforcement by some
body Ananias won an unenviable
and undying fame through trying to
dodge his taxes but were he living in
Vermont today his offence would be
far too common to attract attention.
Among the several changes which
we think ought to be made is that of
making a tax-rate, uniform through
out the state, and otherwise known
as a fiat rate, on the value of all
notes, bonds, stocks and bills receiv-
able, commonly called intangibles, for
these things in a strict sense are
nothing more than the evidence that
the holder has some interest in prop
erty but of themselves, they are not
property, any more than a bill of fare
is a dinner Many of them are now
exempted from taxation by law, for
one reason or another, the principal
one being upon the theory that the
property. the interest in which they
represent, is taxed in some other
state. This provision in the present
law, has worked a twofold injury to
our people as a whole in that it not
only encourages investments in the
securities issued by foreign corpor-
atoms rather than in those of Yer
mont, and it also serves as a cloak to
cover up that which is lawfully tax
able, with the result that an unknown
but doubtless very large proportion
of it, escapes taxation altogether. A
man with varied assortment OF Sc
curities can not know to a certainty
which of them are taxable and which
are not, within the meaning of the
law, so it is molly natural that he
should resolve the doubt in his own
favor and leave them out altogether;
therefore we believe that fiat rate on
intangibles would work for the best
interests of the people as a whole in
more ways than one, that is if they
are to be taxed at all, as they surely
must be in view of conditions in the
state. We are well aware that the
principle we advocate is open to the
criticism that, if adopted, it would
result in some instances, in double
taxation. But a moments reflection
will convince anybody that we are
simply advocating the same treat
ment for these securities or eviden-
ces of debt, when held by the indiv-
idual that is even now under the law
meted out to them when held by saw
ings banks and trust companies, for
the present tax of seven-ten5hs of one
per cent on their deposits is, in the
final analysis. nothing more or less
than fiat rate on their intangibles;
for these deposits are very largely in
vested in a class of securities which
derive their value from property al
ready taxed like real estate for in
stance The amount of actual cash
on hand in a successful bank must al
ways be relatively small, otherwise it
could not pay dividends. The state
has OF necessity, taken to itself, for
its use, the revenue thus derived
from such deposits however invested,
except in government bonds and in
real estate actually owned and locally
taxed to the bank, and the result of
this is that the state annually re-
ceives a larger sum from this tax
than from any other one source.
Now let us see how the application
Of the principle of the fiat rate to
banks has affected them, and through
them. the state For the purpose we
have in mind. we need go no further
back than to 1906 when the legisla-
ture amended the law touching this
matter by thereafterwards permitting
all banks organized under the laws of
Vermont to receive from any one per
son two thousand dollars and this TO
be exempt from local taxation II al
so levied like rate with a like eX-
emptiOn but without limit as to the
amount, on all interest bearing depos-
its in national banks with the mar
velous result that the states revenue
from these sources, increased the
next year. very nearly $4,000 and the
significant thing about ii is that in
hardly a town i'm the state has the
grand list decreased in any degree
whatever In fact, the total grand
list in the state for that year increas-
ed by more than three million dollars.
The practical effect of this law has
been to draw money from its hiding
places to bear some share of the bur
den of supporting the state govern
ment and also to get ii where it can
be borrowed and used by men doing
business in Vermont Thus it would
seem 10 rs that this principle, having
worked so well, so far as 1t has been
tried, could without much risk be fur
thor eytended.-Springfe Reporter.