The Bennington evening banner. (Bennington, Vt.) 19??-1961, 1911-12-09
Tax Reform

the tdA laws Oh NeflnOut dppiodCh
perfection. All will agree that they
need to be improved, and ought TO
be. Certain depressed conditions in
our social and economic life are trac
ed to their operatiOn-probably with
correctness. But whereas there Is
general agreement that the existing
system should be amended, there are
no end of divergent views about
what ought 10 be done. Whatever
the injustice and equalities that we
suffer, we are in measure reconcil-
ed, or al least, adapted, to them and
the proposition of a change in any
direction has to encounter the fear
that its effect may be detrimental
rather than advantageous. Our tax
system is so complex that experts
scarcely understand it, or can explain
it to others, and the average legisla-
tor has only the yaguest idea of what
would happen, whether for good or
i'll, if any suggestion of change
should be carried out. 1t is this lack
of understanding and this timidity
that have kept us pretty closely an
chored, and tax reform is one OF the
few things in which Vermont has not
yet made definite progress.
Now while 1t is true that any step
ought to be carefully thought out,
and its probable results forcasted as
far as possible, to the end that steps
that seem proper should be taken,
such as will not need to be retraced
after disastrous experience, 1t is
equally true that we shall never get
anywhere unless we do something.
Simply regretting conditions and
holding up our hands in despair will
never bring relief. To some extent,
any change will be in the nature of
experiment. If. after due considera-
ton. a course is determined upon as
being the most promising and the
least fraught with danger, it ought
to be adopted without hesitancy Only
by actual trial will our theories be
tested
1t is generally agreed that the one
pressing need of Vermont is cheaper
money for the borrower. We need it
for the development Of all kinds OF
industry; for the farm, the mine and
the shop When a person or com
pany or a corporation, embarking in
a new enterprise or enlarging an old
one, has not only his own money to
risk but must pay six per cent per
annum on borrowed capital, and ip
addition taxes levied on the entire
valuation of the real estate without
the opportunity to Offset for debts ow
ing beyond the value of the personal
property, not to speak of the lements
of depreciation. fire and 6tAer insur-
ance; it is evident that only the most
promising outlook will tempt people
into active enterprises. There must
be a gross profit around twenty-five
per cent a year clearly in sight TO
attract them. In these days of large
industries. long and well established
such openings capable Of develop
ment to the point of competing sue
cessfully and returning the necessary
income are not numerous in Yer
mont.
The person with a few thousand
dollars feels that it is safer and bet
ter to place his money in the saw
ings bank where he can get IL any
time. can realize better than four per
cent on it. and, so far as he knows,
escapes taxation on II. With his lit
tie certain income from this source,
eked out by day labor or. other means
he manages to get along comfortab-
ly The effect OF this condition We
see in lessened personal activity, in
lack of ready money for investment,
in absence OF cooperation for the up.
building of the community and the
state. On the other hand we see the
vaults of our savings institutions
swelling year by year with the
growth OF bank deposits In turn,
this money is loaned to borrowers,
who must give approved security, or
is invested largely without the state,
in stocks. bonds, etc
The increase in savings deposits
We often hear referred to as positive
proof OF thrift and prosperity II is
and IL is not such Banks have their
proper place In business. and are n
necessary spoke in the industrial
wheel. but 1t is possible to conceive
condition where the banking feat
ure would be overdone: where prac-
tically all the money would pass
through banks. where the public
would be divided into two classes
those who put money into the banks
and lived largely on their interest
dividends. and those who borrowed
OF the banks apd had to pay what the
banks demanded; where the former
class had the better OF it, to the dis
advantage of the latter: where indus.
try, small and great, was crippled in
consequence
Now we are of the opinion that
this condition is being approached in
Vermont az present, and we are in
sympathy with the growing idea that
our laws, especially our tax laws are
so. framed as to encourage this con
dition The banks and the bankers
themselves are not to blame. They
have but embraced the opportunity
that the law purposely opened C
them. And they can plead truly thai
as institutions and individuals they
have not absorbed the prosperity thai
has come 10 them. but have passed
it on TO the great body OF their de
positors. In this sense the latter be
come the creditor class the banl
borrowers the debtor class. while IN,
banks are the middlemen In the sys
TEN.
II Is we'll known that our saving,