Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1911-01-06


the taxation? These question have bssn
asked q great many times. The super.
flcial logic back Of them has been sui
ficient to keep the tax on moneys and
credits and to furnish employment for
the tax ferrsts. It IL only whom one
goes beneath the surface that one finds
the impracticability Of the tax on money
the impossibility of really reaching 1t
under our present taxation system.
The Journals friend who asks the
old question is no doubt a farmer. who
has his $4,000 in property that the
assessor can and does get at easily.
Doubtless he has friend who owns no
real estate and has no business. but
who gets his income from money loaned
in one way or another. Is there any
difference between the situation of the
two men, so far as the taxing power is
concerned? The farmer can see none.
Very well. Then let him sell his farm
for $4,000 in cash, and see how it
looks.
Whit his farm the man was rich.
With reasonable amount Of work and
prudent management on his part the
farm brought him in a good living BY
cultivating it he added annually to the
worlds store of wealth. But what is he
going to do with his money to make
it support him? He has no land to
plant il in, and if he planted it it would
not grow. He can jingle it. but that
s'il not get him anything to eat. or
drink. or wear altho it may make
pleasant music. In order to avoid
starving to death. altho he is still worth
as much as when he had the farm. he
will have to put his money to work in
the conventional way. II he wants to
make it work himself. he puts it into
grocery store in the county seat And
irnmediat ely he finds himself paying his
share of taxation. the same as when
on the farm. II he wants to sit in the
shade. he lends the money to someone
who wants 10 make 1t work. and who
is willing to pay interest for the use OF
it, All he gets In return for his cash
Is piece OF white paper. carrying
somebody's promise to pay it back. with
back a farm will be yielded up in lieu
of it. Having loaned the money at a
good rate of interest. the man who sold
his farm is still getting an income out
of the proceeds, and ought to pay taxes.
Sure enough, If one could figure out
any way of making him do it,. But he
no longer has the farm and he no
longer has the cash. The man to whom
he sold is working the farm, and the
man to whom he loaned has invested
the cash. Ii has been invested in some
form Of property on which taxes must
be paid-mayhe another farm. maybe
stock Of dry goods. The farm is pay
ing taxes in the old form. The pro-
ceeds of the farm are paying taxes in
a new form. Does the retired farmer
want to pay taxes on the piece of paper
that he holds merely as security for
wealth someone else Is developing?
The Iowa laws says man must pay
taxes on cash or on a piece of paper
recording the loan of cash. The law
says this. but with all it's machinery.
supplemented by the tax ferrets's cum
ming. it can not enforce such tax. The
miser, who Is satisfied to look at his
hoard occasionally. buries it in the cell
lar, and the assessor can not find 1t.
may be included in the interest rate.
but the tax on borrowed money is paid
by the borrower Just as surely as the
tax on rented house is paid by the
renter.
The tax on moneys and credits is not
a tax on the money lender and mort
gage holder. 1t is tax on the borrower
and it is double tax at that He pays
a tax on his loan. and on the property
he has bought with the. borrowed
money Understanding. does anybody
consider such tax just and equitable?