Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1921-03-21

/ q W FROM
| IS ALCOHOL
Observation-Disclosures or DRUGS
stated by one of the proponents. that
real estate mortgages are made tax
able by the bill, / submit that that
theory of taxation is false in theory
and vicious in operation. 1t means
that every man who borrows money
upon his home pays, at the municipal
rate, a tax upon the value of that
property, the foundation of the Sc
| curity, and it means in theory that
the lender of the money pays the
state tax upon the value of the Sc
curity. In effect, l say, and 1 speak
advisedly. it means that the borrower
pays both taxes, because the lender
can and will enforce, in an increased
| interest rate, so much additional
charge as shall cover the amount of
the state tax upon the, security and
more. 1t does not seem to me good
policy or good business to lay an
additional burden upon the borrower
upon real estate mortgages. 1t would
constitute a double tax, which the
supreme court of this state has held
over and over again was not the pol
icy of the law.
! 1t has been frequently said at this
and previous sessions of the legisla-
ture that the state must find new
sources of revenue to meet the ever
increasing costs of government. An
Al u To-
%, 1921, is in point, and with the
sanction of the committee 1 want to
read that editorial.
I'VE would like to suggest to the
excellent people who will soon be
trooping to the legislature, that pres
cnt taxes are extremely burdensome,
that the widespread unemployment
now prevailing is directly due to the
blood in the shape of taxation, which
city, state and nation are now draw
| ing away from legitimate business
enterprises. The rich can stand up
under the present taxes. They can
! to a large measure rccoup themselves
in the high rates of interest which
| now prevail. 1t is the poor on whom,
| in their costs Of living, these taxes
find ultimate Judgment, and whose
means of livelihood are seriously i'm
periled by the effect of our present
! taxes that our lawmakers should
! primarily consider. At the coming
session. not only on Beacon Hill, but
in Congress and elsewhere the intel
| ligence and conscience of the coun-
! try will show itself in trying to keep
|
new devices of generosity and philan-
thropy upon which public money may
| be showered."
| Provisions for making real estate
mortgages taxable furnishes a Strik-
ing illustrat ton of the truth that taxes
all find their ultimate lodgment on
| the poor. The poor man who must
mortgage his home to meet the ever
! increasing cost of living must pay as
| have previously stated. not only the
municipal tax, not only the state tax
upon the security but also the in
| creased municipal rate made neces-
| sary by the withdrawal of intangibles
from the municipal sources of tax
alton.
! This city, like every other, has
housing problem which we are trying
| in various ways to. solve. We do not
! believe it is good business to lay upon
! the poor man., whom we seek to en-
courage to own his home, this added
! burden.
The bill is inconsistent with itself
in other respects. To refer to lines
Is and 16 of Section one again.
| Nothing in this act shall be so con-
strued as to apply to any property
exempted from taxation by the laws
of the state. and Section 4. 1.-THE
provisions of existing law for the re-
turn and taxation of shares of stock
in banks and other corporations not
otherwise exempt shall remain in
force" except the returns shall be
made to the state, etc. Now then,
Revised Statutes, Chapter 10, Section
26, exempts to the holder shares of
stock in certain corporations-man-
ufacturing, mining and smelling cor
porations. 1t exempts to the owner
those shares from taxation. But this
bill, in Section 20. adds an amend
ment to that section that 1.-The pro-
visions of this section" meaning Sec
ton 26, shall not apply to intangi-
BILE property registered for taxation
with the state assessors, meaning
apparently that that class of proper
ty becomes subject to taxation, al
though Section 1 and Section 4, as
previously quoted, say that existing
laws are not changed by the pro-
visions of the bill.
Al,usion has been made by the pro-
ponents to the provisions for an ap-
peal 1t states in substance that any
person aggrieved by the assessment
of taxes may appeal to the supreme
court, which shall have full power to
determine the matter in accordance
with the principles of justice and
equity. etc But it adds the signifi-
cant exception Except that the
judgment of the assessors in matters
of valuation, in the absence of fraud
and mistake Of law shall be conclu-
sive." Now it seems to me, from a
reading of that section, that an ap-
peal which automatically shuts out
consideration of the substance for
which the appeal was made is not a
very valuable right. In other words,
assuming that YOU are the owner of