The Bennington evening banner. (Bennington, Vt.) 19??-1961, 1911-11-04
BENNINGTON, VT, NOV. 4. 1871.
TAXES AND PAYING THEM

Ulll NnlAh P0ooNh pONh " ohSANo VI
the legislature at its last session, but
was vetoed by the governor and fail
ed to pass over his veto The Herald
and News makes a strong presenta-
ton of its side of the case but it
overlooks the strong point OF the bill
and the one that was chiefly respon-
sible for its prompt passage by an
overwhelming majority in the House.
The Herald and News says:
Admittedly, the withdrawal from
the local grand lists, which through
out the state are subject to an aver
age local tax rate of $179, of an
amount estimated by those who favor
the change at ten per cent of the
whole, representing the so-called in
tangibles-the withdrawal of this
would lessen the local grand lists ma
terially and increase the local tax
rate on the tangibles left tobe taxed,
such as houses, farms, lands and or
binary personal property. Ninety per
cent would have to pay what one hun
dred per cent now pays. That is one
of the certainties of the proposed sys.
TEN, And the loss would
fall upon the holders of tangible pro
perty-worst of all upon holders of
mortgaged real estate, the class who,
of all others, ought to be helped at
present.
This is not at all as The Banner
understands the provisions of the bill
or as its provisions were argued in
the House of Representatives The
bill as proposed and passed would
take away from the towns the rev.
enue that they now derive from the
tax on intangibles, but at the same
time it would relieve them OF the
eight per cent state school tax and
five per cent state highway tax. If
the Herald and News estimate OF loss
of revenue at ten per cent is correct,
the plan would certainly be a good
thing for the towns for they would
get rid of a thirteen per cent tax
while losing only ten per cent Of
their income.
OF course the Herald and News
meant its estimate of ten per cent
only as approximate to give basis
to figure on and there is reason to
believe that reliable statistics on this
question are not available. One thing
however, We believe, was demonstra
ted, and that is, that very large
majority OF the towns would make a
good trade to swap off their income
from intangibles for relief from theiI
state highway and school taxes.
/ A minority OF the towns would lose
by the proposition. These are thu
wealthy towns where large amounts
Of bank stock bonds, mortgages anC
other securities are owned. Tit
friends of the bill argue that thi
would be perfectly fair as the larg'
and wealthy towns, through thei
banks. stores, railroads, factories, etc
take toll Of all the business of tn
towns that surround them. AT an
rate the situation in its final analyst
will not be so much different fror
what II is now, for under the presen
system the small towns draw bac
school and highway money out OF pre-
portion to what they pay. 1t is RICH
too, that they should. although W
are aware that some people who liv
and pay taxes in large towns do nc
agree with The Banner in this view.
The Banner is inclined to bellev
that the Herald and News underest
mates the amount that would be VI
covered for taxation by low fiat rat
on intangibles. Many people are 70
!. ced by their necessities to becom
tax dodgers under the law as II no
: is. Take for instance good old De
con Jones who has retired from h
9 farm with just enough money so thI
4 the income at four or four and on
half per cent will keep him and h
wife in modest comfort. lie is abs
lutely prevented from loaning thu
. money in Bennington. or scores
other towns in Vermont by the "a
4 rate OF 200 cents on a dollar and u
II Deacon Jones loaned his mon,
X here and paid taxes he would con
! to want. Consequently, he sends h
money out OF the state and invests
whore II isn't taxable.
Deacon Jones doesn't want to
-. tax dodger lie would be glad
l. let Brother Johns boy have the mo
ey on a mortgage at FIVE per cent
: he could have low fat rate OF sew
r. mills as proposed by this bill that Il
= governor vetoed. AS the law now
g everybody In the deal is los,
lr Brother Johns boy has to pay six D
70 cent on his mortgage; Deacon Jon
u " risks his money away from home,
accused OF being tax dodger by DC
: pie who don't understand the situ
ton; the town and state lose not on