Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1911-02-02
THE LEGISIATtUr AND TAXA

| While our lawmakers did not accom-
p'ish all that was expected Of them,
II Is gratifying to be able 10 state
that the people of Vermont will be
surprised when they note the effect
Of he legislation which was enacted.
To-day we consider chiefly the sub
ject OF the taxation of intangibles and
of deposits in savings institutions,
as the two are closely related. In the
FIRST place II may be we'll to discuss
some of the features OF the measure
regarding intangihles which the Leg
islature passed.
Tho summary OF the measure as
sent out from Montpelier gave list
OF what We're to be regarded as in
tangibles for taxation under this pro
posed act, and among the number
were included certificates of stock in
corporations. We supposed with 9th
ers that there was no exception to
this, and stated that the measure
should he so framed that stocks rep
resenting property already taxed To-
callv should not be taxed again under
this measure as It would mean In
creased double taxation instead of
| less. Further examination shows
that a subsequent provision did ex-
clude such stocks from the operation
of this law and Commissioner of Taxes
Cushman says that the reference to
the taxation of such stocks should
| include a clause, except as provided
to the contrary elsewhere"
AS matter of fact the bill provid-
ing for q fiat tax of -tenths OF
one per cent. on intangibles did not
change the present law regarding che
taxation Of such stocks, except to sub
stitute the reduced rate for the local
| rate OF taxation paid on such stocks
at the present time. In other words.
stocks held in Burlington subject to
this tax would have paid tax of
seven tenths of one per cent. instead OF
| one ana seven tentnS per cent, while
throughout the State the drop would
have been from An average OF one and
seventy-nine hundredths per cent. to
seven-tenths Of one per cent
Another Interpretation regarding
the tax on intangbles was that it
meant the removal of all offsets. This
error resulted evidently from the sup
position that reference to a particular
class OF offsets that would be touched
Offsets.
1t follows therefore that two of the
great interests which supposed they
would be adversely affected by this
proposed measure would have been
benefited
The explanation of the reason for
postponing the adoption of this sys-
tenn OF taxing intangibles shows what
interest would have been adversely
ford the very encouragement to local
business interests claimed for the
measure by Its friends
The removal ot the limit on the
amount which a person might deposit
without local taxation in savings
institution, which we shall consider
more Mt length later on, was Intended
to encourage people 10 put more
money into savnrs institutions and
thus help 10 increase the income %
tho state
II was held by those who opposed
the passage Of tho law ut this time
that law providing for n tax OF
seven tenths on mortgages held by
individuals would tend to influence
people to draw their money from the
mortgages. At the present time the tav
on savings institutions deposits goes into
the general fund Of the State. wherea
the proposed law substituted the pro
ce.3s OF the tax on intangibles for
the state road and school tax the rev
enue going TO those two objects Man
ifestly therefore this tax on intanEl-
blss would not help the State to avoid
hsrge deficit in connection with gen
sral expenses.
This being the situation, a major
ity OF The ways and means committee
Of the Horse, some OF whom favored
the principle sid not think 1t would be
well to pass a rn at this time pro
viding for tax G. intangibles, In
spite OF this fact how yer, the COM
mittse reported the meaA"~o without
any recommendation and it was on
the speakers table, they claim. several
days and could have been 'lled up
at any time. They did not hold the
measure back. on the contrary the
chairman OF the ways and means com
mittee tried several times to call up
the bill. but 1t had been mislaid tenn
porarily.
In the same way Governor Mead be-
lieved the principle TO be right but
he did not believe it a sound course
to pass legislation that would enlai &c
the deficiency which is certain to re-
suit from the large appropriations
; made,