The representative. [volume] (St. Paul, Minn.) 1893-1901, 1893-09-20
GRADUATED PROPERTY TAX.


GRADUATED PROPERTY TAX.
A Few Words In Explanation Of Ldout.-0ov.
Percy Daniels Tax Bill.
There seems to be q vast amount OF
misconception extant concerning the
nature of Mr.. Daniels tax bill recently
forwarded for introduction in congress
Very many people seem to consider
that il is scheme to tax incomes, but
a. the bill does not propose to tax
incomes at all, it is difficult to under
stand how the impression got abroad.
Then, again, the great majority of the
people seem to think that it is kind
Of an inheritance tax measure, or bill
to tax the property of individuals who
die and leave the same. But, far from
being as whole, bill to tax dead
mems estates, it is intended to tax all
the property, both real and personal
above certain set and limited amount
of living individuals
It is probable that the chief source OF
the last named misapprehension is in
the title Of the measure itself. Mr..
Daniels calls it the Graduated Estate
Tax" Now the term ESTATE" has two
distinct and diverse meanings. One OF
these is: IA fortune; possession; espe-
ciaAy property in land" The other II:
property of all kinds which a person
leaves to be divided at his death" It
Is in the latter sense that the term il
generally and properly used, but Mr..
Daniels used the term in the first men
toned sense.
~ S1Ar &<N>e~ AvNo tad
upon all property, or estates, both real
and personal, in excess of $1,000, 900
and is intended to recover to the peo-
pie portion of the wealth that has
been stolen from them by dishonest
legislation and absorbed by parasites
and concentrated in the hands of plu-
tocratic oligarchy. The bill is very
lengthy, too lengthy in fact, to pub
lish in full, but the following sections
will show it's intent and scope:
Section l. That graduated tax be levied on
and collected, as hereinafter provided, from the
property and estate OF all property owners
within the jurisdiction of the United States, as
follows:
Sec 2 On all estates the aggregate actual
market value Of which does not exceed g., 1000.
600, q per cent tax.
Sec 8 On all estates the aggregate actual
market value Of which exceeds q, 600 ,00o but
docs not exceed q, oOo, O0J a per cent tax
Sec. 4. On all estates the aggregate actual
value Of which exceeds s5,oN0OO and does not
exceed SIC, OOo. 600 a tax of per cent
Sec 5. On the estates Of all property owners
not coming within tho terms and conditions of
sections 2, 3 or OF this act an 10 per cent. tax
provided, however, that all property owners
who make the return to the proper off1cer of all
the property within their possession or control,
as hereinafter provided, shall be entitled to an
exemption of property to the value Of 81 100000
from the operations Of this act.
Sec Is The treasurer Of the United States
shall apport1on and divide the
funds collected in the sta tes, less what has been
paid out as otherwise provided, among the sew.
eral states, by the following plan:
Sec 16 One-third OF the total net proceeds OF
this tax, except that which is collected in the
territories, shall be divided among the several
states in proportion to their valuation; that is,
their proportion Of this third shall bear the
same ratio to the whole third as their valuation
bears to the total valuation of all the states a.
assessed.
Sec H. Another third Of the proceeds Of this
tax shall be divided among the states by the
same method in proportion to their population.
Sec 10 The other third Of the proceeds OF
this tax shall be divided among the states BY
the same method, in proportion to their area.
Sec 49, he treasurer Of the United States,
after having made the apportionment OF tho
funds collected. shall, on or before the 10th days
Of February and August, following, deposit the
amount to which each state is entitled with tho
treasurer Of said state.
Sec 70 The proceeds Of this tax in the terri.
tories shall be expended in the territories in
which it is collected. on such internal improve.
ments as the territorial legislature may order;
and other provisions shall be made by the gem
eral government for paying the ex-soldiers who
may be residents Of the territories the same az
they would be entitled to under sections 81 and
u OF this act If residents Of any state
Sec 81. The proceeds OF this tax in the states
shall be expended for three purposes: First
for PENSIONS and paying the soldiers of the war
OF the rebellion the difference between the coin
value Of the money they were paid in and gold,
with interest at six per cent from January l,
1865. compounded semi annually; second for
building, enlargtng or repairing canals: for inn
proving navigable streams and extending tho
mileage OF navigable waters; for improving
country roads and establishing q system Of
hrst-class highways: for building storage res.
ervOirs along or at the heads OF streams for
the purpose OF decreasing floods, and increasing
the dry weather flow Of the streams. and for
establishing and maintaining forest parks in
the vicinity Of or adjoining the reservoirs;
third, for organizing eQuipping and maintain
ing national guard.
Z Sec "a Estates OF Inheritance, and all legs.
cies to individuals and public institutions, shall
bo taxed by the method described for collecting
d 8fAOu6tcO cSt0to TAX In tnlS 8Ct, the proceeds
Of which shall be state funds; and the assess.
ors shall make returns OF the estates of de-
ceased persons TO the probate court whenever
required by a state law which shall provide for
and require such tax, II in applying this meth.
Cd taxation begins at olOo, 900 and is applied -
follows: Inherited estates and legacies to one
person or corporation valued at 4oJD,OO0 or uu.
der . one per cent tax; from S2uO 700 to $500 OO0
q three per cont tax: from $50 oOD to 81 900 900
an eight percent tax from 81 900 600 to e. 900
q twenty per cent tax; and above 81, 600 OOJ .
thirty per cent tax: Provided, however that
in each instance 500 0OO for each person or cor.
poration shall be exempt from this tax
Sec IS The property lists made by the
United States assessors shall be used for all
purposes Of state and local taxation; and tho
assessor shall furnish complete copies of tho
same whenever required BY state laws and al.
lowed thereby, reasonable compensation for the
work
The foregoing sections contain the
principal provisions of the measure and
from psrusal OF them it may readily
be seen that the measure is in fact a
graduated property tax for national
purposes and graded inheritance tax