TAX ON MORTGAGES.
The SPEAKER announced the special order for this hour to be the consideration of the bill [H. R. 247] to regulate the proper entry for taxation of mortgages, prescribing duties of officers therein named, etc. It was read the third time.
Mr. EDWINS said that this bill was for the purpose of getting at a certain species of property had heretofore escaped taxation--the mortgages held by the wealthy classes on the real property small farmers and homesteads of people living in towns. He was aware that any measure looking to the taxing of property of the wealthier citizens, was in bad odor with some members of this House, and was not surprised at the direction the opposition came from.
I am aware of our $80,000 loaned in my County alone on mortgaged property, and not one mill of taxes has that $80,000 ever paid into the Treasury. This is the property of one person, and there are others in my County of a less amount, say in all about $150,000. I am informed also, from well-informed parties, that there is at the least calculation in the city of Indianapolis over $750,000 hid away from taxation in the shape of mortgages.
Mr. CARTER--I have examined this bill, and do not think it ought to pass. While this bill is intended and will remedy one evil; if it goes into operation it will create another evil greater that the one which it attempts to remedy. Our tax law already provides that every citizen of this State shall, under oath, make a return to the Assessor a statement of all notes, accounts, etc., that he may have, and if he does that then all the notes and mortgages provided for in this bill will be taxed anyway.
Mr. THOMPSON--Under this bill a mortgage that is given in County A upon a note, the Auditor is to inform the Assessor of County B of the amount of money those men have in County A. I know of instances where there are thousands of dollars loaned that are not assessed for taxes, while the property is visible in the shape of farms, etc. The man who loans the money is taxed, but the sharpers loaning go untaxed.
There is a necessity for something of this kind. Whether the gentleman's bill will reach or not, I can not say. I am in favor of the bill, and will vote for it.
