New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1891-03-26
FOR TAXING PERSONALLY.
TIE SENATE PASSES THE vEDDER BILL
RELATIVE TO DIRECT HEIRS.
nrrsov., ESTATES OF LESS THAN $4,000 IN
VALUE EXEMPTED FROM TAXATION
DETAILS OF. THE DEBATE.

VALUE EXEMPTED FROM TAXATION
DETAILS OF. THE DEBATE.
S,o,, rur ryouIAR CORRESPONDENT OF THE TripUxl
Albany, March Ex-senator Vedders hghiy III
portant bill to tax direct heirs OF personal properly
came M In the senate today upon the order OF tmrd
,eadin9 and excited considerable debate. The bill
exempted all personal estates of less than $4,000 In
yarpe Senator Coggeshall moved. as an amendment
that this limit Of exemption be raised 10 10000
IL object to this exemption of estates above 10000
In value.n said senator Vedder, because II seems 10
me this tax OF l per cent is small enough. upon
81. 1000 it will only bring in $50 to the state Treasury.
Contrast that with the D per cent tax which inc
collateral heirs Of all kinds Of property have TO pay.
An estate Of 5000 personal property generally I'M
plies also the possession of real estate worth Slo'ooo''
Suppose a man dies and has an insurance polcy
of 2 O,OOO,' said senator Hunter. would that DC
taxedf'
"No, under the Insurance law it is exempt replied
Senator Vedder.
al think you are mistaken in one respect" said
Senator Saxton. addressing Senator Vedder. IL a
man has an insurance payable to himself, the sum lit
would be taxed under this bill. But l presume the
cases Of men insuring themselves are so rare that TINS
Is a small matter. Usually a wife or children inherit
the proceeds Of an insurance policy"
at seems TO me,n said Senator Coggeshall. "that
we should not tax personal estates OF less than Slo,Ooo
In value. If we do, we shall tax GENEROUSLY WIDOWS
and orphans; and it seems TO me That would DC "a
shameful act, in view Of the enormous income OF the
State from other sources"
In my judgment" said senator Erwin. "this ex-
cmption should be raised to $4,000. | would Ike 10
ask Senator vedder II he has disturbed the Collateral
Heirs Tax law, and whether ii would not be better
to introduce this bill as a separate measure
Il cannot vote for the BILL said senator Cog
geshall. "unless this limit of exemption is increased
10 100000"
Senator Sloan supported the bill. "In my judg-
nan y ba eaid :. Phi Kin End ~ inSfiHrnfinn in N
fact that personal property doesn't pay a very large
share OF the States taxes at the present time. And
the ingenuity Of people has framed the present Dill 70
reach personal property at least once in a generation.
IL is safe TO assume about most personal property that
it has never paid a penny of taxation. In my opinion.
we might as well draw the line at $1,000 as at
$4,000"
senator Vedder gave a history OF his Collateral In
heritance Tax laws. Those laws" he said. " brought
into the state Treasury last year Sl.117.631 30. And
now there is a cry that we should tax personal prop
erty. There are many schemes Of taxation before the
Legislature, but most of them are opposed stoutly by
some person or other. II seems to me that this bill OF
mine Is one of the best before the Legislature. Il
doesn't tax real estate. In fact, ii will relieve and
lessen taxation upon real estate. l assure Senator
Erwin that not a word of the Collateral Inheritance
law is changed, except what is necessary to adapt TINS
bill to 1t. i also assert that there could not be a
better or a cheaper way OF taxing personal property
than this one. From the time of the Emperor Augustus
political economists have united in the opinion that
this IS the best method of taxing personal property"
A vote was then taken upon senator C0sgeshafs
amendment. increasing the exemption TO $4,000 ana
il was adopted by the following vote
Nays-Messrs. Fa' sett. Hendricks, Linson. MeNaughtoh'
O'Connor. Roesch. saxton. Sloan, Veddcr-0.
Yeas-Messrs. Cantor, Chase. Copgeshau, Collins Erwin
Hawkins. Hunter, Ives. Laughlin, Richardson. Robertson
Sheari. Stewart, Van Gorder-l4.
Senator Fassett then supported the bill. "some
years ago." he said, u urged Senator Nedder TO expand
his Collateral Inheritance Tax law so as TO INCLUDE
direct heirs. i am glad to see that he mas at hst
done so. Personal property is, OF all property, the
most elusive when you seek to tax it. In New-Iork
City the Tax Commissioners assess for personal prop
erty 22.O0O persons who possess personal property
worth 81 $50, 900. 1000. / asked one Of the Tax Commits
sioners If that was all the personal property owned In
New York, and he replied that it was not one-tenth.
SO we actually have in New-lork personal property OF
the value of $4,000. 100000. How much of that
paws a tax Only $2SO,0OO 900. All the rest of ii
Is sworn off. Ninety per cent Of the personal property
tax is paid by banks and by estates. In my Judgment
not 5 per cent of the personal property in the state
is taxed. 1t should be taxed. II Is TO be taxed when
the heirs can pay it the easiest: before they have en-
joyed it's possession. 1t is u tax which falls with a
light weight even upon them. one per cent IS nGt
much. II seems TO me that a form OF wealth when
now avoids all the tax burdens Of society shouM
bear its share Of them. / do not think IT VIII reach
ali the personal property, but it s Viii dG each edo a large
from her probate and succession tax. When TINS law
sSes Of into teaf f' Estate ! l hSE 50 80 i Sa1 sEsSsl9y Nth FfasT iaHst iSs own
The demand for taxing personal properly said
Senator s, Llnso1 hs Taas grown irresistible THIS Dill
The bin was passed by a vote of % to ), as follows:
Nays-Messrs. Erwin. Ives, Roesch, Stadler. Stewart-5.
Yeas-Messrs. riskett. Chase. CoggeshalL, CopnI
Deane, Donaldson. Emerson, Fassett. Hawkins, Hendricks,
Hunter. Laughlin. Linson, McCarrn. McNaugh:on,
O'Connor, Richardson, Saxton, Sheard. Sloan, Van Gorder.
vedder-e2.