Essex County herald. [volume] (Guildhall, Vt.) 1873-1964, 1911-11-17

the essentials of which take precedence
II is claimed for the fiat rate that
the effect of such system will Toe to
uncover large amount of inlangibles
that now eyade taxation because of the
high local rates aud that growth in
revenues will result. But the more es-
pecIally it is claimed that such a tax
will put an "evener" on the individual
with money to loan or invest aud the
banking institution in the same condi
ton, whereas the latter now possesses
an advantage that virtually gives it
monopoly in its line, through the lower
tax rate it has to pay on its working
capital. And as a result of the compe-
tition in fair field that will follow it is
argued that the borrower will be able to
secure money at a lower interest rate
a consummatiCn toward which persons
of different minds regarding means
earnestly look. These are the chief
advantages of the fiat tax system, as it
advocates maintain. 1t is urged by
them as a reform that would do much |
to correct the inequalities and injustices
of the present method, would foster
enterprise and industry and improve the
lot of those who depend on the capital
= of Others for their means to do business.
On the other hand are those who are
skepti1al about the advantages of the
change proposed; who fear it would add
to, rather than take from, the burden OF
the poor people and the borrowers who
see in the radical disturbance that would
:, result balance of injury, rather than
benefit, to the state as whole. Some
> of the reasons for this belief are:
Admittedly, the withdrawal from the
. local grand lists, which throughout the
a state are subject to an average local tax
rate of Sl.79, of an amount estimated
by those who favor the change at ten
per cent of the whole, representing the
!. so-called intangibles-the withdrawal OF
1, materially and increase the local TAX
II rate on the tangibles left to be taxed
Of such as houses, farms, lands, and ordi
Fl. nary personal property. Ninety pei
II cent would have to pay what one hun
N. bred per cent now pays. That is one o
,st the certainties of the proposed system
m AS opposed to this certainty, we hav,
"a, the supposition that if intangibles al,
-, taxed at lower rate more of them viii
% come out to be taxed. We doubt this
A. Ii man is successful now in covering
,;c his property from Sl,79 tax, We do no
~ think he will yield more readily to tn
50 Establishments of a $40 tax-or euoug
80 it will figure very large in the aggrt
ba gate. A dog that objects to having hi
~ tail cut off half the length from the ii
hs won't voluntarily offer it when only
!; quarter of it is to be taken off. To a,
oh sumo that persons who have been hidim
:, their money, stocks, and bonds all thei
-, lives will be seized with a twist o
III conscience when the tax rate is droppe,
-. one-haf or more is to misread human
nature. We should see virtually a
ha much covering of such property as W
m now see-or rather don't see, because
loo is covered so carefully. By no posi-
mo- bility would towns that give up a Ger
tain $l,79 levy on this species o
loo property ever realize rs much on it iron
=. $40 rate. And the loss would fal
Al. upon holders of tangible property
mo worst of all upon holders of mortgage
nm real estate, the class who, of all other:
co ought to be helped at present.
m. But, we are told, look at the banks
at see the taxes they pay at this fiat rate
he would not the same rate draw heavi
ed from individuals with money? Nc
a First, because a very large per cent O
ars the money now in the state alread
nal pays this tax, through the banks, wher
it is deposited, or through insuranc
snt companies, which also pay flat rate
The Manifestly, this money would not pa
ess two taxes. If withdrawn from tn
ties financial institutions and subject to tn
nat same rate, there would be no gain t
md the state or town whether 1T came on
to way or the other. Again the taxatio
the of money through the banks has prove
great success as revenue producer
not because of the low rate upon it, bu
eat because 1t has been possible in this wa
est to reach it, while all other attempts t
sh. tax it have failed, When money is i
, it the banks it is where the taxing powe
lty can get at and count it and tax it an,
he collect the tax. The bank has n
the interest to cover it up, since the ia
in really comes out of the depositor by hi
essened dividend. And it couldn
cover it if it tried. Vermont ha
solved the taxation of money in wa
re- that other states have been glad to pat