Crittenden record=press. [volume] (Marion, Ky.) 1907-1909, 1909-02-18

present constitution is that there can
be no deduction for mortgage indebt-
Cdness. The reason for the estab-
iishment of the rule is to prevent
fraudulent evasion of taxation. The
operation of the rule. however. Is
severe upon hard working and indus
trious persons who are cndeavoring
TO put by their savings and impose
a tax upon property that has not yet
been earned or acquired.
Thus \ is the owner of a farm of
the value .of 100000 which he
sells 10 b for that amount But b
has only 100000 to apply upon the
purchase. and TO secure himself A
reserves q lien upon the land to sc-
cure "a note for $4,000 90 the un-
paid purchase money. Just before
the transaction takes place, the total
amount OF taNabl, property is The
farm S1Oooo.0U. and BIS money.
100000
When the transaction has taken
place. B has ana interest n land Of
the value of 100000 and \ has
$5,oeO.0o i'm cash and the not for
100000.
When the sale is completed. the
state taxes the farm in the hands OF
y for 100000 and taxes \ $40
oO0.0e upon the money and note
Their" has been no addition what
ever To the wealth OF the common
wealth by the transaction. and vet
the state imposes q tax upon the
land for its value $4,000. 0O) and
upon the money and note in the
hands of \ for 100000. making
an increase for taxable purposes OF
100000. and the reason is that
some one other than Il may be able
TO ovade taxation If the law should
permit bona fde debts To be deduct
ed by the taxpayer in making his re-
turns for taxation. The law is in
reality a burden upon an unearned
increment which will owe its e,-
tstcnce to the labor thrift and fru-
gality OF h during series of years
in the future. who may. also. as q
part OF the purchase price. have con
tracted To pay \ q larger part OF
interest upon the deferred payment
han he would otherwise have been
required 10 pay in order to compen-
safe \ for the tax upon the note iu
his hands
In Maryland mortgages are NOT
taxed Money. as consequence. |
flows into and not out of the state |
like Philadelphia. has be /
come a city of homes. snd comfort /
able houses can be bought or rented |
no much lower prices than in other |
large cities
In Ohio. where the constitution /
provides for general property tax /
2 system of what iS there called su,- |
'ial excise and privilege taxes uuou /
Operations has been devised and /
Iut iu force for the use of the STAT. /
alone, hy which the tax uuuu real /
md personal estate for state pur.
POSES has been reduced 10 thirteen /
md four-tenths cents upon each ou.
hundred dollars
ln Kentucky our social uecessiti.-
ave demonstrated that the hapu
ness and prosperity OF the people .
depend upon the ease with which /
aNation can be adapted 10 chancIu.
circumstances
The state is now i'm the anomalous
'osition OF cNpending money 10 i'm
luce uneduCated immigrants. ignor-
mt of our institutions. 20 come into
kentucky, and maintaining "a salaried |
gent in the city of New YurI, Tor
nat purpose and at the same time.
BY unwise taxation is driving from
pr Keeping ont OF the state men OF
american parentage. industrious. in
elligent and educated. who have the
Kill energy and capital necessary to
promote new enterprises that would
ring into the state. without public
I'D a desirable class Of Norkiugmon
Extracts from an address deliver
"a before the Kentucky state Bar
association, by Hon. w. II. Va kov
f Covdgton.