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Taxing Government Bonds

Taxing Government Bonds image
Parent Issue
Day
11
Month
August
Year
1865
Copyright
Public Domain
OCR Text

No one questions the abstract justice of tlio proposition to tax ineomes from Government securities. No one pretenda to say that it is not the clearest iajustice to the roass oí tax-payers to exempt these securities froin State taxation. But the holdors of these securities tell us that the law of Cougress is explicit - tbat "it is so nominated in tho bond" - and, Jew like, they iosist upon the pound of fleah. This is true ; hut the question is wbether Congrees has the power to pass such a law - to exempt the property of a citizen of a State for the support of its government. And this questiou will be agitated uutil it has been definitely settlod by the bighest judicial tribunal of the land. The people all over the country will demand that all the men and all tho property of the land shall bear theirjust proportion of the taxes. lt is well said that there is 110 parallel to the injustice whicb has exempted so large a class of property from its share of burdens none to the folly which has endeavored to erect and organize in tbis Democratie country a "scrip uobility," which olaims to have bought perpetual exemption from its portions of taxes. The holders of the bouds will themselves, if vvise, begto be pertnitted to strengthen publio credit by sharing the public burden. In Gonnectiout it is estimated that full $50,000,000 have been invested in Government Bocurities, md tho House oi'Eepnjoeutatives, by a vote of four to onp, pussed a bui tu.viag incomes from theai fifteen per oent. This vote probably ropreseuts very truly the public sentiment on this important matter. In this State, it is believed that full $10,000,000 have been invested in these Hocuniiüs and thus exempted from taxation. The amount of the taxes which tbis su-rn ouglit to bear, is thus thrown upon tbü other property of the State - upon those taxpayers who do not hold such securities. Supposing the rata of taxation to average two per cent., the amouut of taxes on this $10,000,000 would be 8200,000. Now, by tha exoinptkw of thiii property, this $200,000 must be thrown, as extra charge, upo-n tho other property and tax-payers of the State, that is, tho othar tax-payers must pay L200,000 a yen-p raoro then they would have to pay if this property was taxed l:ka other property I It cannot bo expocted that these tax-payers will bo so " loyal1' as to eubmit tamly to this grogs injustice. They realize irom their property probably not over four Dl five per cent.,, and are compelled to pay nearly onc half &f tliis in taxes ; while the holders of Govermaent btocks reali.e eeven or eighfc per oeut., interest free from taxation, and overy dollar of this large interest ia paid by overburthened tax-payers I And this gross injustice is daily growkig aad becoming more burth.-nsotne to masa of the poople by the daily increase of the natioual debt. The Utioa Jlerald pointedly eays that the " paeifio" departmeot ís jast the rigfa place for Hallock.

Article

Subjects
Old News
Michigan Argus