Vermont phÅ“nix. [volume] (Brattleboro, Vt.) 1834-1955, 1912-11-22
URGES CHANGES in OFFSET LAW.
Tax Commissioner cushman Discusses
an important Subject In His Annual
Report--Burden et Taxation Increased.

Report--1urden ct Taxation Increased.
state Tax Commissioner j. e. Cush-
man discusses the important subject OF
deductions on account of debt owing
In his biennial report He says:
''The matter of abolishing offsets mas
for several years been seriously dis
cussed and several unsuccessful attempts
have been made to repeal or modify the
present law There is an increased con-
yiction that something must be done
to limit the scope of this law.
"When our offset law was originally
enacted conditions were different. There
were comparatively few banks-now we
have 1O1 national and state banks, none
subject to local taxation; then most
aeans were made of local parties; now
Few loans are made by one indlViuual
to another then If A claimed onset OH
account of indebtedness to b there was
reasonable probability that Il wouiu pe
taxed on such NEUTRALITY-SUSPICIOUS. tnere
is little prospect thereof.
"At present large sums are expended
for fire and police protection OF personal
property relieved from taxation Under
offset laws, stocks of merchandise, man
ufactured products, other raw materials'
Is there a logical reason why such
property should not bear its just pro-
portion of the expense Of such protec-
ton?
SHOULD not such expense be appor-
toned among various taxpayers. accord
ing to the valuation of personal as wen
as real estate, giving to each reason
able concessions in the form OF exemp-
tions as will relieve from unjust hard-
ships?
why should the offset law be con-
tinued in its present form casting in
creased burden of taxation upon real
estate and relieving Accommodations oil
tangible property used in lucrative bus
mess that enjoys such protection? This
law was intended to assist the taxpayer
of slight financial ability. Instead OF
relieving taxpayers of the last namet
class it assists those having ability tc
obtain liberal credit to escape taxation
on much if not all personal property
and leaves the real estate owner ant
the taxpayer of small means who can
not obtain credit or who has no indebt'
edness to pay the greater portion of the
direct taxes
Che benefits of the system while persons
for whose benefit it was enacted are
bearing a burden which the law intended
to relieve"
For the even years 1900 to 1910, also
years of 1911 and 1912 aggregate valua'
tions of personal property set In thu
list and aggregate deductions on ac
count OF ueDIS OWlnS were as lOllONS
1900, personal property actually taxed
$4O,SS1 .676; deductions. SPLIT, $50; 1902
property taxed, Sal, 1864 deductions
1927. 255, 281 1904, property taxed, Sal ,525, 345
deductions, $29,119,9S1; 1906 propert,
taxed, $42,953,S12; deductions, $1,000, 653
1903, property taxed, $43,369 1854; deduc
items, $31,772,5 44; 1910 property taxed
si5.iOs 9S2; deductions, 1872 7s4, 945; 1911
property taxed, s46,O46, 6O2; deductions
1874. $50 746 1912, property taxed, $45,O49 O32
deductions $92965,399.
"1n 1912 there was a decrease o
$1.715,347 Such decrease of substantial!
one and three -fourths millions unmis
takably shows that listers are endeavor
ing to minimize the evil effects of on
offset law.
Heretofore no limitation has beei
placed on the kind of indebtedness tina
may be used in offset, 1t would seen
just that no deductions should be allow
ed on account of Indebtedness incurre,
for or on account of non-taxable prop
erty. 1t would seem just in determining
amounts of deductions allowed to ex
clude all Indebtedness owed on accoun
of insurance premiums.
An amendment providing that n
offset be allowed against stumpage val
uation of wood grown in the stat
would remedy some conditions. TIL
purpose of this discussion is not t
advocate adjustment of offsets but
advocate limiting the amount of exemp
ton that a taxpayer may have on &C
count of debts owing in order that a
may contribute just proportion of tn
funds necessary to support the govern
ment of the municipality wherein the
reside or have taxable property; takin
into consideration the benefits enjoye
and the taxpayers ability to contrib
ute"