The Bingham County news. [volume] (Blackfoot, Idaho) 1918-1930, 1921-08-19
WOULD CURTA|L
TAX EXEMPTION
Asserts There Are Now Over Thirty
Billions Exempt From Taxation in
the United States,

Chicago.-A determined effort to
end the tax exemption of certain
classes of securities has been started
by the Chicago Mortgage Bankers
Association, consisting of concerns in
Chicago lending money on city real
estate
This organization began its efforts
when the recent National Convention
OF Real Estate Boards was held here
last month. That convention adopt
ed resolutions directed against the
further extension of the tax exemp-
ton privilege, and the CHICAGO or
ganization has enlisted large mum
Der of real estate men throughout
the country in it's campaign.
At the real estate convention the
keynote was sounded by Melvin A..
Traylor, noted Chicago banker. in
an address on 1.-THE Menace of Eco
nomic Fallacies." Mr.. Traylor as
serted t.et. including Liberty Bonds,
there are over thirty billions If dol
lars OF tax free securities afloat in
the country. These, he said are
largely represented by munt ,!pal Sc
turtles ara Atreal to the velv u eal-
thy, resulting in keeping general tag
alton hieh and restricting prolIe
tive industry. He charged MISC that
much nun ',la extravaga ne is d q
to the tax eaon ption featu,e OF mum
icipal sec t.,ljes
The Ch.'ag) Mortgage Banke.s
Associatt)u c'is1ges that TX exemr-
ton carIes '1e diversion ar large
amounts ct Ii, ey by es. .tes and in
d1v1dua;s Wit large incomes from
building entcr rises to those which
are 1ner; So fs' as produce Va indus
try is M ,ed. 1t charges lie
building shortage to be due largely
to the purchase Of tax fres securities.
and that as a result rents and taxes
upon the general public are increased.
A protest. against the futherance
of tax exemption has been sent by
the association to every member of
Congress and the foundation Of a ma
tional organization of city mortgage
loan men has been formed. It is pur-
posed through this national organi-
cation to demonstrate that the ex-
tension of the tax exemption privilege
means exemption for the wealthy
only and greater taxation for the
general public; higher rents through
less building; the continuance of the
high living cost and unemployment
because of less capital for productive
industry, and a general hating of in
dustrial development.
Attention is directed toward farm
loan bank bonds and joint stock land
bank bonds now tax exempt, as illus
tratlons of the dangers of extension
or the tax exemption privilege and
also as class legislation If this
practice continues it is feared other
classes Of the people will ask like
privileges. The organization will
seek TO demonstrate to the farmers
that they are ultimately the real suf-
ferers, because of the resultant slow
ing down of industry and the conse-
quent restriction of markets for farm
products, together with the nigher
taxes they must pay.
Were the tax exemption privilege
entirely Withdrawn" said GEORGE RI.
Mortgage Bankers Association there
would be approximately sixteen bill
lions of dollars, aside from Liberty
Bonds, amendable to taxation This.
at the normal income tax rate, would
WELD nearly billion dollars anar-
ally and would relieve the people Of
a huge tax burden and divert amaz-
ingly large sums from nor-produc-
tive to productive uses
If the lax exemption privilege Is
curtailed, then increasingly larger
sums will be available for TX tf9a.
which will at once reduce tn. general
burden and enable industry TO OBJ
tain the capi.'al it so urgently needs.
II, however, the privilege s extend
ed. we shall have, as Mr.. Trayior
points out, greater municipal extra
vagances, useless public work and
inert large fortunes. which will mean
the continuance of high taxes, little
5ui ding construction and high prices.
we invite the cooperation of all en-
lt2htened organizations to help end
this iniGuitous economic absurditv.,