The Bennington evening banner. (Bennington, Vt.) 19??-1961, 1912-11-18
REGARDING OFFSETS
Tax Commissioner Cushman Says
Law Should Be Changed.

State Tax Commissioner j. Z. Cush
man discusses the important subject
of deductions on account OF debts
owing" in his biennial report. He
says:
THE matter of abolishing offsets
has for several years been seriously
discussed and several unsuccessful at
tempts have been made to repeal or
modify the present law. There is an
increased conviction that something
must be done TO limit the scope OF
the law
when our Offset law was original
ly enacted conditions were different.
There were comparatively few banks
now we have 101 national and state
banks, none subject to local taxation;
then most loans were made OF local
parties; now few loans are made by
one individual to another; then II A
claimed Offset on account of Indebted
ness to there was reasonable proba'
bility that b would be taxed on such
indebtedness-now there is little
prospect thereof.
AT present large sums are expend-
ed for fire and police protection oil
personal property relieved from taxa
ton under Offset laws, stocks of mer-
chandise, manufactured products, 9th
er raw materials. Is there logical rea'
son why such property should not
bear it's Just proportion of the ex
pense of such protection?
Should not such expense be ap'
portoned among various taxpayers
according to the valuation of person
al as well as real estate giving To
each reasonable concessions in the
form of exemptions as will relieve
from unjust hardships?
why should the Offset law be con
tinued in its present form casting in
creased burden of taxation upon reaI
estate and relieving Accommodations
of tangible property used in lucrative
business that enjoys such protection
This law was intended to assist the
taxpayer of slight financial ability
Instead of relieving taxpayers OF the
last named class it assists those hav
ing ability to obtain liberal credit tC
escape taxation on much If not al
personal property; and leaves tn,
real estate owner and the taxpayer o
small means who cannot Obtain
credit or who has no Indebtedness t
pay the greater portion of direc
taxes.
MANY well-to-do taxpayers derive
the benefits of the system while per
sons for whose benefit it was enacted
are bearing a burden which the Law
intended to relieve"
For the even years 1900 to 1910. al
so years 1911 and 1912 aggregate val
uations of personal property set il
the list and aggregate deduction OF
account of debts owing were as fol
lows: 1900, personal property actua
ly taxed, $40,SS1 ,676; deductions, S27
177,2S9; 1902, property taxed, SAL
$685.; deductions, S27,255,2S1; 1870
property taxed, S41,525,345; deduC
tons. $29.1l9,9S1; 1906, property tax
ed. $42,953,S12; deductions, S30,924
sos; 1908, property taxed, S43,369
964; deductions, $31,772,544; 1915
property taxed. $45, ,9S2; deduC
tons, $S2,734,945; 1911, property tax
ed, S46,046,602; deductions, S34 ,4S0
746; 1912, property taxed, $45.049
O32; deductions, 49,, 1865, 399.
I'm 1912 there was a decrease o
sl,715,347. Such decrease of sui
stantially one and three-fourths mi
lions Enthusiastically shows that lister
are endeavoring to minimize the evl
effects of our Offset law.
Heretofore no limitation has bee
placed on the kind of indebtedness
that may be used in Offset. II woul
seem just that no deductions shout
be allowed on account of indebted
ness incurred for or on account Q
non-taxable property IL would seer
just in determining amounts of dc
auctions allowed to excluded all IN
debtedness owed on account of il
surance premiums.
An amendment providing that n
offset be allowed against stumpag
valuation Of wood grown in the Stat
would remedy some conditions. Tn
purpose of this discussion is not {
advocate adjustment of offset but [
advocate limiting the amount OF e,
emption that a taxpayer may have o
account of debts owing i'm order tina
all may contribute a just proportio
OF the funds necessary to support IN
government of the municipalit
wherein they reside or have taxabl
property: taking into considerable
the benefits enjoyed and the taxpa,
ers ability to contribute"