Ottumwa tri-weekly courier. [volume] (Ottumwa, Iowa) 1903-1916, 1910-12-29
SAYS MONEY TAX
| INJURIES STATE
SECRETARY F. 6. PIERCE OF THE,
IOWA LEAGUE OF MuNlciPALl-
TIES GIVES VIEWS.
Says Its Inequalities Tends to Encour-
age Dodging Taxes and That
the Burden Falls on Widows
and Orphans.

That 1t is not alone factor in the
loss of population sustained by the
state, but that It likewise breeds ia,
! lodging and leaves the widow anC
orphan to bear more than~their share
of the burden, is the belief regarding
Iowa's tax on moneys and credits as
expressed by Frank G. Pierce, OF
Marshalltown. secretary of the Iowa
League OF municipalities. Mr.. Pierce
has given careful study to the taxing
problems Of Iowa and has read severa
! papers before national tax meetings
He is unqualifledly opposed to the tax
on monies, and credits. 49,
Discussing the necessity for repeal
he said, while in Des Moines recently
Undoubtedly the tax on moneys and
credits is one of the most important
| factors in driving the people out OF
| the state. 1t has contributed to this
condition as much as any one PROPOSE
| ton. What is the use of having a
state publicity bureau to bring people
here, only to drive them out with an
absurd system OF taxation?
They say that specific instances of
people leaving the state because of the
tax should be given. Well, | know of
fifteen people in the city of Marshall
town who have moved away from the
state in the last five years because of
the tax on monies and credits. The
people with money to invest will not
stay in state where their moneys
and credits are taxed.
How It Works.
Here is Just an absurd side Of the
question A man has contract to buy
another mans farm in March for
100000 The contract is made in De-
cember. In January he sells the con-
tract to third party. taking new
contract from him. 1t all involves the
same $4,000 and the same farm. Well,
the owner Of the farm pays tax on
the land, the owner of the first con-
tract pays moneys and credits tax
on the $4,000, and the owner of the
second contract involving the $4,000,
pays still another moneys and credits
tax on it. Triple taxation. No wonder
the people won't stand for it.
"And being shrewd business men
they get their money outside of the
state for investment or put it in such
4 manner that it cannot be reached
lnder the moneys and credits tax But
he widows and orphans with few
thousand left them have no experience !
and they pay the tax and pay it in full. |
Estates being matters of public record |
are also compelled to pay the tax, but |
he man with $4,000 or 100000 to in.
vest, never pays a cent of the tax.
Pennsylvania Method.
There are several remedies which
IAN be applied. The first is the Penn
,ylvania or Connecticut plan. Those
states have straight four mill tax on
Ill moneys and credits wherever found.
Reports of their tax commissioners
show that there is no disposition to
lodge this tax or send the money away
rom the state because it is 50 small
hat the average investor feels willing
o. pay 1t rather than bother to make
Investments outside of the state
still another system which is very
much In vogue is the Wisconsin sys-
EN-. This is real estate mortgage
ak. But the value of the mortgage is
deducted from the value of the land
rhe owner Of the mortgage then pays
| tax on his mortgage and the owner
# the land pays tax on the equity
which is left in the land But that
aw is circumvented by clause which
hey now put in the mortgage making
obligatory for the mortgagor to pay
10Th the mortgage and the equity tax.
20 it practically relieves the mortgage
# the tax.
Plenty Of Good Methods.
"Still another method of taxation
which is better than our moneys and
redits tax is the Minnesota real estate
mortgage registration. Under the pro-
'isions of this law real estate mort
ages are taxed so cents on the 800
nd the tax holds good for five years.
is readily seen that so cent tax on
very 500 paid once every five years
S a practical exemption Of the mort
age from taxation.
These are only some of the methods
which have been devised by the tax
xperts Of other states to get just !
axing system and yet keep capital
nd people in the state. They have
cen more or less successful under all
f these plans. for they have not lost
opulation, at least
PERSONALLY think that Iowa's whole
ystem Of taxa ton from end to end is
yrong. | believe we should soon estab- Il:
sh in Iowa a permanent tax commits
ion. which shall take over the duties
t the executive council and shall also
ave power to overrule local assessing ]
cards and make new assessment in
ny part Of the state. The tax COM I
Mission. of course, would have as it's
lain function the equalizing of the {
axes of this state" {
Give Reward to Mother.
Mason City. Dec. 26--Because of the ,
that has arisen among {
laimants Of the reward offered for evil l
ence that would lead to the arrest of
ne murderer of Henry Luckus, a move
as started among the women of the
ity to give the money which is !
90 rly 81 mn RI tho widowed c,ntbor ,