The Bennington evening banner. (Bennington, Vt.) 19??-1961, 1913-01-13
BENNINGTON, VT, JAN. 10, 1913
THE NEW TAX BILL

that would be approved in every de-
tail by any citizen. There are so
many varying views on the subject
to be taken INTO consideration that
any measure that can secure support
enough to get a majority Ct votes in
a legislative body must be com
promise bill For this reason the
state should look with reasonable IA
vor upon the tax bill now pending be-
fore the House of Representatives Gt
Montpelier
Frankly, this bill does not meet
the full wishes OF any class Of tax
reformers but carries the leading
features advocated by the fiat rate
men and also by those who desire
merely exemption of moneys loaned
in Vermont Both these ideas are
embodied in this bill as it came from
the Senate. They are in somewhat
modified form but the main features
Of each are retained.
On the face of the bill, offsets are
done away with but as a matter OF
TACT people who have heretofore had
offsets will find favors in this bill
which nearly but may not quite, com
pensate them for losing the right OF
offset, and, provided the bill should
become a law, il would not seriously
upset conditions or tax income ex-
cept, in possibly three or four towns
in the state where the local situation
is peculiar
While no offsets are allowed, all
tangible personal property such as
stocks of merchandise, raw materials,
manufactured products, live stock OF
all kinds, farm produce, and every
kind OF similar property is placed al
full rate of one per cent. AT the
same time, fiat rate of seven-tenths
OF l per cent is placed on Intangible
personal property such as stocks
bonds, mortgages, etc. Coupled with
this. is the exemption of mortgages
on real estate provided they are writ
ten bearing interest at five per
cent or less.
From this. it will be seen that
merchant or manufacturer is favor
ed by a one per cent rate on his
tangible personal property, while at
the same time he should be able TO
borrow money at practically l per
cent less than he can now under the
present system. The farmer, and es-
pecially the farmer in debt, gets an
even greater benefit as under this
measure, he can undoubtedly borrow
money at five per cent and If his Sc
curity is good, at four or four and one
half percent. The bill gives individuals
the same privileges as banks in loan
ing money so that borrower can go
to a neighbor or friend just as freely
as to a bank.
AS figured out at the tax commits
sioner's office after examining the tax
returns of q towns of varying size
the total income of the 246 towns in
the state will be lessened by nearly
100000 and at the start this will
mean slight raise in rate on real
estate but on the other hand, the OPP
portunity given for the practically
free and unlimited extension OF Dor
rowing capacity to all individuals
which will bring prosperity and in
creased investment of money in Yer
mont should in the course of two or
three years not only make up the
slight temporary increase on real
estate but should actually result in
lowering the real estate tax II has
worked this way in the four states of
Maryland, Pennsylvania, Iowa, and
Minnesota, where this sytem has been
in use.
At the very start large number of
towns, and especially the smaller and
poorer NONHSt Will piohN ny NhAo 'Aii
ana as the total real estate valuation
in Vermont at the present time is up
wards of S157.OOO,OOO it can be seen
that even if no new securities are
brought into the tax list there can be
no serious transfer Of burden
When this measure was first taken
up nthe Senate, there was a hostile
feeling toward it and its opponents
claimed a vote of % to against it.
After spending two whole afternoons
in discussing the matter in its every
bearing the bill passed the Senate
Friday by a vote of % to Zone sen
ator not present but admittedly in IA
vor OF the bilD showing how the
measure gained strength as it be
came understood. Not all Of those
, who voted for the bill are very warm
in its support but gave It their in
dorsement as a fair compromise
measure hoping that a two years
trial Of II would show whether II is