Barton County democrat. [volume] (Great Bend, Kan.) 1885-1915, 1912-03-22
SHAM REFORM.

An organization calling itself the
Ohio Tax League is urging the Con-,
stitutional Convention to exempt mort,
cages from taxation. If the conven-,
ton knows its business it will con-
sign the Tax Leagues request to the
waste basket.
In the first place II is not the pro
vince Of a constitutional convention
to legiSlate. 1t will have fulfilled its
function when it has made 1t possi-
Die for the people at any time to
adopt or amend any law they see fit
in accordance with whatever ideas
they may hold at the time. Anything
In the nature of an attempt to force
any kind of tax law ON the people
would be am abuse Of trust Of which
a majority Of delegates in the conven,
ton are no doubt incapable.
In the second place, even II II were
desirable that the convention should
legishte on tax matters, the pnoposi-
ton Of the Ohio Tax League Is Oh
Jectionable in the form which II mo
Sents 1t. II is true that the present
tax ON mortgages is double taxation
since a tax OF equal amount is also
levied on the land held as security
for the mortgage. 1t Is true that dou.
bic taxation is indefemsible, but tho
proposition Of the Ohio Tax League
is not directed at the unjust feature
of such taxation.
The holder OF a mortgage is to the
extent Of that mortgage the neai
though not the legal owner of tha
land. He Is virtually landlord while
the nominal and legal owner, the
mortgagor, is in fact a tenant. Own
ers Of land may rightfully be requir-
ed to pay taxes in proportion TO tha
value OF land they actually own. Il
Is unjust to compel a mOrtgagor to
pay taUes on am equity he has virtu.
ally transferred to a mortgagee. That
is equivalent to taxing a tenant ON q
fandlord's property. The Ohio Tax
League Is asking that this injustice
be perpetuated by the Constitutional
Convention 1t urges in behalf Of thit
proposition the undeniable fact that
the tax on mortgages Is in fact paid
by the borrower in higher rate of
interest 1t conveniently forgets that
this higher rate of interest is not so
burdenSome as the tax the borrower.
tenant must pay ON land that he does
not own, together with taxes he must
pay ON the produces of his own labor
and enterprise.
The Ohio Tax League wants TO ex,
empt the landlord and compel the ten
ant to continue paying taxes on an
other mans property besides paying
taxes on his personal property and
Improvements, and a number Of indi.
rect taxes besides. Such sham pe-
form will hardly appeal to the pro
greSsive majority Of the convention
and will certainly be condemned by
the voters.
True tax reform will disregard the
legal fiction that classes a mortgagor
as a landowner and a mortgage as
owning no land. The legal fiction Is
responsible for much misapprehensiou
regarding the single tax proposition.
1t has given some persons the i'm
preston that the concentration of an
taxes on land values will exempt hold
ers OF mortgages. Inscriptions edi-
tors In plutocracy's service, who
know better, have pretended to be
lieve the same thing and have help
ed to spread such misinfOmatiW.
The fact is that under the single tai
the mortgagee will be treated as he
should be, as a land owner. legal fic-
tions to the contrary Notwithstanding.
The mortgagor who is paying rent
falsely labelled interest,"" will be en-
empt from taxation on something he
does not own.
II the Ohio Tax League did not hap
pen to be more interested in secIr-
irg relief for certain class than In
getting justice for all, it would help
the movement to exempt labor and
Its products from all taxation instead
Of the sham reform 1t Is trying 10
push.