The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1910-12-22
TAXING MONEYS AND CREDITS.

ce'ned hut what about the wolves?
TAXING MONEYS AND CREDITS.
Hon. N w. Rowell. tho veteran
iurist of Alton, Iowa, contributes
briefly to the current discussion on
the advisability of repeating the law
taxing moneys and credits in this
state. He points out that there is a
very great injustice laid upon those
whose taxable property consists of
money and credits, as illustrated in
the following examples:
"A man has horse which he could
sell for 5000 The horse is assessed
at 500, and the owner is taxed on
SIS. If he sells the horse he is as
sessed for 5000 on the proceeds of
the sale and he pays taxes on 500.
Il know man who has a farm that
is worth $4,000. 1t is assessed at
s5,64S. and he pays tax on S1,Ss4.
IF he converts it into money ne
will pay twice as much on the pro-
ceeds of the sale of the farm as ne
does on the farm
William Anderson, residing at
Jewell, Iowa, attributes Iowa's loss OF
population to orr taxation system,
especially the taxation of money. He
cites an instance as follows:
"A man dies-there are hundreds
every month-leayes on an average
$4,000. 1t is assessed for $1,000 and
pays from to s per cent, being about
$500 to $500 per year taxes. In all
our towns a widow can only loan 1t
safely at from to per cent, $500
to $1,000 income; pays $500 to $500
taxes and only leaves her $500 to $500
to live on and keep the family she
moves to Minnesota and has 1t all
because the borrower pays the regis
tration fee. Numbers of moneyed
men move to other states where mon
ey is not taxed and send it back to
loan here. When money is taxed II
is always double taxation. for when II
is loaned it is put into stock. land OF
other tangible property and is always
taxed Urge the legislature to ex
empt moneys from taxation and PEG
pie will return and not leave the state
and loan and invest their money al
| home and stay with their friends
The Des Moines Capital comedies
that if. it is true, as argued by those
who are in favor of the repeal that the
operation of the law is. such as te
drive the money out of the state thus
| losing both the money and the hope
4 of tax, there can be no objection te
I the repeal, and it must be remembered
! also that not only the money leaves
| the state. but the man takes his mon
| ey with him and the state loses it
! thriftiest citizens. 1t is commonly
heard by those who are familiar witt
/ this problem that If a census were
i taken of people residing in Californi;
that large proportion of them would
answer that tbey left Iowa because o
the tax on moneys and credits. Th'
Capital presents this as one OF th'
most important questions for the leg
islature which meets in January t
consider. 1t is in the line of con
structive legislation for the recon
I struction of Iowa.
TIE executive council OF the low
STATE Bankers association went Oh
record at Des Moines last week il
favor of taxing moneys and credits a
uniform rate lower than that in
posed on property generally In
Dubuque Times-Journal declares tina
this should be done. 1t says that tn
banks are now taxed on every dolla
of their capital, surplus and undiyide
profits. except that the government
bonds they own are exempted. Th
Times-Journal MAKES it clear that thi
is unjust because property general
is not held to the same liability. Tn
same paper goes on to say:
Real estate generally is taxed 2
somewhat less than its value, thong
there are individual cases in whic
the assessor is too exacting. 1t
we'll known that the assessed yalu
of farm lands generally is below the
real value and that the live stock an
implements on the farm are not full
assessed Besides the farmer has CO
tain exemptions. In the cities tn
I capital stock of mercantile and mani
t featuring corporations is exempted b
& law and manufacturers are given ce
!, tain other exemptions. AS rul
; stocks OF goods are assessed belo
value. Justice therefore demand
some concession to the banker. who's
reports disclose every dollar the ban
k owns"
+ However. as the Times-Journi
4 points out the practical argument Il
/ reduction of the tax liability
/ moneys and credits is expedienc
a I'm the cities of Iowa the tax rate
+ about two per cent, 40 per cent of ii
: income from five per cent mortgai
r and one-third the income from a 8
e per cent stock. S'his is so oppressi'
that it is generally eyaded and whe