The Barre daily times. (Barre, Vt.) 1897-1959, 1911-05-06
pENouNcEs mFLAT RATE
]. H. Sprague, Writes About Recent
Legislation That Failed.

Legislation That Failed.
Editor Times: A bill passed by the
legislature Of Vermont at the session OF
1910 to determine the exact status OF
moneys, mortgages, bonds and other Sc
curites in this state and TO SET the
exact rate of taxation that class OF
property should be required to pay
The legislature years. ago fixed the value
of the use of that class OF goods not
to exceed G per cent. per annum ana
this class of wealth unless exempted by
law paid the same tax rate as other
property.
The recently exaeted tariff law OF the
United States, granting special prlv-
ileges to a few at the expense OF the
people at large, has caused q wave o.
protest from the entire country when
changes the status of both great polltl'
cal parties. Now the "flat rate" OF sew
en- mills on the dollar on intangibles
is an effort BY certain star statesmen
of the late legislature OF Vermont 10
protect the interests OF class q peo-
pie by diminishing their tax rate, there
by necessitating an increase OF the tax
rate of those persons owning tangible
taxable property.
Is the ownership OF mortgages, nds,
cash in hand or other intangbles 4 in
FAINT industry in Vermont that needs
fostering and protecting and building up
in this state Does the ownership OF
that class of property render the pos
SCISSORS privileged persons to the extent
that a special law be passed to pam.
per them and lessen their fair share
| In the burdens of the body politicf Or,
II il sop passed out to them that by
making them low rate OF taxation
they may perchance have streak OF
moral reform and put in the list
larger amount OF value of this worlds
goods than they otherwise would 7 Are
thew more desirable citizens because
they own mortgages, cash, bonds and
other securities listed in Sec. IN House.
bill No. 60l
II this act relating to the taxation
of personal property and establishing a
uniform rate on moneys and securities
by taxing half the normal rate II had
| been assessed yearly in the past, or 70c
on the dollar on the grand list, would
II still has received the support OF the
| now famous 1903 members of the House
went on record in favor OF the meas
ureY The governor of Vermont went on
record against it by yetoing the meas
ure.
We claim that this legislation was not
for the benefit of the whole people OF
Vermont. but only for the individual
owner Of intangibles AS such we con-
denim it; il violates our sense OF right
and Justice and it violates the spirit
of the constitution of Vermont from
which | quote in parti Chapter !. Ar
tiele lst. "That all men are born
equally free and independent, and have
certain natural. inherent, and unahen-
able rights amongst which are the en-
loving and defending life and liberty, ac-
curing. possessing, and protecting prop
erty, and pursuing and obtaining hap
piness and safety"
quote in part from the veto mes
sage "flouse bill No. 900 removing
the limit from the amount Of savings
banks deposits subject to state tax was
enacted with the full understanding that
ii was for the purpose OF raising rev.
nue. to meet the increased expenditures
Fprovided to be made BY the many large
special appropriations made at this ses-
sion OF the general assembly. feel
that to now enact legislation depriv-
ing the state OF that revenue so raised
would be serious mistake, and one
that ought not to be made. therefore
return House bill No. without my
approval
John A. Mead, Governor.
Dated AT Montpelier, Vt, this 2Sth day
of January, 1911"
Bv the high local tax rate money Is
driven from the reach OF the tax asses
sor and by the low tax rate established
by the state of Vermont for savings
banks and trust companies, money u
called in from the owners to avoid the
higher rate that other classes OF prop
Eerty is forced to pay; 50 between the
drive and call, the savings banks and
trust companies that were instituted pri.
marily for the benefit of widows and
persons incompetent to place their small
sums of money advantageously and
safely. or in other words to play the
game OF finance.
! The limit Of deposit being 100000; but
people having the financial propensity
abnormally developed straightway sue
! ceeded in having the limit raised from
s300 90 to $4,000. from $4,000 TO 81
10000. later to $l,500.00 then to 81.
10000 and now House bill No 6g0 OF
the late general assembly removes the
food gates from those institutions and
too ay savings banks and trust com
panies are advertising through the state
! asking for deposits unlimited in amount
upon which they viii pay 4 per cent. IN
] terest and also pay the taxes, zoe on
the dollar of the grand list.
, 1t is seIf-eyident fact that thetmort
of yermont's wealth that is removed
from local rate of taxation, the higher
must the local rate be. The first com
, plete report OF savings banks, savings
institutions and trust companies was II
! 1856. There were thirteen at that time
with total deposits of 1897 ,432dn gan
of $500 in one year, but when the
limit of deposits was raised to S2,OoO.0t
more than S4.000,00o.00 were deposited
in, one year, closing June 30, 1910, ant
the number of institutions had increased
to fifty.
The Hon. commissioner OF taxes sug
pests reduction of the tax rate OF
bank deposits from seven-tenths to SIX
| tenths Of one per cent, thereby reduc
ing the revenue about S750O0.OOO year
IN The Honorable bank commissioner
GOES him one better, and | quote IRON
his report. page 7:-- "The great bulk o
savings deposits in our banks Is own .,,