Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1911-01-26

over assessment OF property. This is
double taxation. This liability tol
double taxation extends to many cases
where no money passes. and the mort
gagged property is the only property in
yolved A has q piece N 1and worth
$4,000 has nothing, but wishing toi
buy As land, A conveys it to nm. ana
receives B's note for $1,000. secured byI
a mortgage of the land. Under our
system the land is taxable to and
the mortgage note To \. thus taxing
$4,000 in value where but $4,000 exists,
Another striking Illustration is given
bv the Tax Commission Of 1890. A
owns a farm worth $20oo X has $5oo
in money. Both are taxed in the ag-
gfegate S2500. That is all the property
they possess. Il buys AS farm and
pays him the $500 in part payment,
and a promissory note. secured bHl
mortgage of the farm, for $1,000. MOI
new property has been created, Yet
our present system would tax Il Tor
the land he has purchased. $1,000. and
4 for the debt b owes him $l5od. maxi
ing $3500 of taxable property. Under
such a system, the larger the amount
OF debts and mortgages. the richef
the community. TO tax both property
and credits. both lender and borrower,
is plainly incorrect in principle, and
ineauitable in practice The iniquities
and absurdities of double taxation are
further forcibly Illustrated in the Re-
port of the special Tax Commits
sion" of 1905 The commission gives
the following illustration: y man sells
his farm to his son; the son gives his
note for $4,000, secured by mort
GAGE on the farm. Has $1,000 worth
of new property been created by TINS
TRANSACTION Before the transfer only
S160u0 worth of property was taxable.
Can we truly say that this amount hasl
been doubled by the Transaction It'll
seems To us that to tax the son forl
$40 900 and TO tax the father for an
euuaI amount is to double the taxes
which are To be paid on the same piece
of nroperty. If the son should fail
to nay. and the father should regain
title by foreclosure, or there should be
y re-conveyance from the son to the
father in consideration of discharge
of the mortgage. has $4,000 worth of
taxable property been eXtingulshed?
To remedy this injustice. and to OBJ
viate this evil. every possible subter-
fuse. evasion and fraud is not un-
naturally resorted TO.
The law is everywhere violated Tol
escape taxation. the lender or mort |
gage inserts in the mortgage note and
mortgage as grantee the name of some |
person outside of the State. From
This person, he receives an assignment. /
which he holds in his possession but
does not record and thus While re-
ceivng the principal and interest of
the mortgage. escapes taxation The
real mortgage is the assignee of the
mortgage while the apparent mort |!
sasee is simply a counterfeit and n |
dummy. Thus the law encourages de-
ceit, evasion. and dishonesty. Under |
it, the honest man is Disseminated |
against y premium is put Son dis
honesty
\ cursory study of the report of the
state assessors will can1ihGe one not
only. that the law is ! perfect farce.
encoufasing falseho"'aA but that in
many parts OF the state she local as
SCISSORS, sworn and raid dfficials of the
State. have Conspiroa With. the mort |
gagees for the purpose of rendering |
the law nugatory and bringing il into
contempt
From the report of the State as
SCISSORS for the years 19o916 the |
amount Of taxable property denominat- |
counties of the State is as follows: