The Hartford herald. [volume] (Hartford, Ky.) 1875-1926, 1916-03-15

taxation upon the loan for all years
except the first one.

taxation upon the loan for all years
except the first one.
For instance. As the law now
stands, IL q man were to lend &c.,
900 and take as collateral security
warehouse receipts, bonds, stocks,
or any form of intangible personal
property sufficient to cover the en-
tire loan, he would have to pay tax
at the maximum rate upon the &c.,
900, and he would have to pay that
tax annually.
But, under the above referred to
section of the proposed law, If he
were to make a similar loan and
then take a mortgage upon only
$1,000 worth of real estate as
additional security" that would en-
able him to avail himself of the fif-
! ty cent rate upon the whole $10,-
900. and would also enable him to
escape taxation upon the whole of
that loan except for the first year of
it's existence.
"The authors of the proposed bill
lay claim to the fallacy that the bill
will abolish double taxation. That
may be true, but it would not do
away with it equitably and justly.
For instance: Under the present
law in Kentucky If man owns a
farm worth $1,000 and has it mort
gagged for $4,000, the farmer pays
taxes on the entire $4,000, and the
holder of the mortgage is supposed
to pay tax on the $4,000 which is
lent upon the farm. In this way
there is a double taxation on the
$4,000. The farm pays it in one
instance and the lender of the mon
ey pays it in the other.
This bill proposes to do away
with the double taxation by leaving
the farmer to pay tax upon the ST.
500 which he has borrowed, and
permits the money lender to escape
the payment of almost no tax upon
the money which he owns, and
which he has lent upon the farm.
If the proponents of this measure
really intend to do away with the
double taxation, the farmer should
be required only to pay tax on the
value of his farm, minus the mort
gage indebtedness which is upon it;
and then the man holding the mort
gage should pay the same rate of
taxation on the other $4,000 which
he, in this indirect way, has invest
ed in the farm.
81 venture the opinion, without
Investigation. that no county in the
State of Kentucky has a county rate
of taxation less than fifty cents,
while the State rate of taxation is
fifty cents. In that event the gen.
eral taxpayer living in any county
in the State would pay every year
at the rate of not less than 81 on
his farm and livestock, while the
money lender, under this bill, would
pay only fifty cents, and would pay
that for only one year during the
life of the loan.
Another provision of the bill |
places the collection of this tax with
the County Court Clerk, and takes
it out of the hands of the Sheriff. |
The Sheriff's Office is not worth too
much as it is, and the passage of
this bill would make it worth less.
"In my opinion, if this bill should
become law the railroads and great
which have taxable
outstanding mortgage bonds upon
their property would take advan-
tage of the provisions of this bill
and retire the taxable bonds, and re-
place them with mortage bonds con-
in this bill. which would
be taxable at the small rate of so
cents for the first year, and would
thereafter be untaxable.
"The bill is villainous; and trust
hat each and every member of the
Legislature will see to II that Il is (
defeated.
Very truly yours.
REM TOuNSnN 4