The Brattleboro daily reformer. (Brattleboro, Vt.) 1913-1955, 1921-02-24
Flat Rates VS.. Income Tax.
Est. Adams Messenger

Commissioner of Taxes NJ. q. Morse es-
Inmates that there is upward of 100000
600 of intangible personal property in
Vermont that is not declared for taxa
ton purposes He says that when the
unlimited offset was abolished i'll 1912
approximately S10.00O000 Of such prop
eTty was Immediately withdrawn from
taxation. He further states that under
the present rate of taxation in the state
person who submits this class of property
pays fully one-half of the income in taxes,
which most people consider to be cGntsca-
tory an attitude. which he saws, cannot be
regarded as entirely unreasonable"
intangible personal property IS quite
easy TO cover up and IL Is only in human
nature that it should be concealed when it
is made to bear such heavy tax burden.
Therefore the state, by its insisteuce in
levying such Il heavy tax. is giving proof
ot the fact that taxes may be made so
generous as to kill themselves as revenue
producers. The state, by an unreasonable
law, Is only depriving itself of revenue.
which in turn makes the taxation of other
property unnecessarily high. but it is also
driving many persons into the law-hreak-
ing class. And they have the sanction of
most people In breaking the law in this
way.
All of which is poor business and poor
policy. How to correct it? Commissioner
Morse gives il as his opinion that n low
fiat rate, with a penalty clause for non
declaration, lis the most satisfactory man
ner for handling this class of property.
lie may well be right. There are many
owners of intangibles who would be will
ing to pay fair tax. but who viii persist
IN refusing to pay an unfair levy. Now
Hat rates, tried out in other states have
brought to light great quantities of for
merly undeclared intangibles and the state
has protited by increased revenue.
The fiat rate proposition is much more
to the point than the weird and fantastic
income tax law, aimed at intangibles, pro-
tesslonal and salary incomes. which has
made its appearance in the house. Not
many people have awakened to the fact
that the attempt to impose an additional
income tax on them is actually being
made. If they are wise they will arouse
themselves to the situation.
The income tax bill is a perfect wonder
Tor obScurlty and contradictions. 1t is
more complicated than the Democratic ma
tional income tax, and to say this is to
confer quite some distinction in the state
measure, for the boast has often been
made that to make n return more compli-
Gated than is the federal form was beyond
the ingenuity of the human mind But
Vermont has produced the masterpiece
The way To get at these intangibleS is
not through the fanciful income tax bill
that has been presented but by the method
of a fiat rate If Nermonters have in
fiIcted upon them any more taxes they win
be up in arms If they have inflicted upon
them any more of the red tape of making
out these accursed forms. they will all be
eligible for free scholarships at the state
hospital for the insane and will pass per
feet examinations for the incurable ward.
IL the legislature wants to get at intan-
slDleS let uS go at il in n reaSona bic
way and let it spare a long suffering pub
nc from the lutiiction of additional govern
mental mOnStrOSitieS.