The morning call., 1893-12-24
THE INHERITANCE TAX.

The suit brought in Santa Clara County
TO collect the inheritance tax on the be-
quests in ex-senator Stanford's will Will
test the statute of last winter and put it in
shape for practical working. If there are
any flaws in the act they will come to
light. If none are discovered the act will
60 into effect without further contest, and
new source of State income will be util-
lied.
Up to the present time the laws provid-
ing for the collection of inheritance taxes
have been rather tentative than effective.
Fourteen States have passed such laws.
In four of them II to wit, California.
Nebraska. Ohio and Maine-the laws were
only passed this year. In the other ten
to wit. Pennsylvania, Maryland, Della
ware. Illinois. New York, West Virginia,
Connecticut, Massachusetts, Tennessee and
New Jersey-the whole sum realized by the
tax in 1892 was about S5,000.000 But in
the same year Great Britain derived from
her inheritance tax S53.609 975. and France
from hers $50, 873, 305. 1t is evident that
our law does not cut as deep as foreign
laws, or that it is evaded. 1t takes time
to put new fiscal measures in working.
During the first year OF the opera
ton Of the inheritance tax in New
ork 1t yielded less than $4,000. Last
year its proceeds were S2,227,6 GA, about
one-third Of the total State revenue
raised by taxation. Even this sum is less
than the tax yields in foreign countries.
The population of Belgium does not vary
far from the population of New York. but
in Belgium inhertances yielded S3.S00.000
n Tn Tfotry i
try that the great bulk of the people leave
no taxable estates at their death. the
sum of 100000 was collected last year
through the tax on inheritances.
When Senator Hill's bill for a national
tax on inheritances comes up for discus
sion in Congress nice questions viii be
raised. OF course, national tax on in
heritances in States which already have a
State tax on them would not be open to
the objection that it was double taxation.
The taxing power OF the State does not de-
priYe the nation of the right of taxing
such property as the constitution subjects
to Federal taxation. But it is evident that
the fourteen States which now rely upon
an inheritance tax to supply part of the
sum required to carry on their State gov
eminent would object to having part of
shat sum diverted into the Federal treas
ury. No such tax was contemplated by
the trainers Of the constitution. II would
be regarded by strict constructi0nists as
new departure, not free from cOnstitu-
tional difficulty, and as paving the way
for Federal property tax which would
encounter general antagonism.
1t would be difficult to set limit to the
tax-bearing capacity OF large inheritances.
The power co levy such tax is unlimited.
1t is easy for that large majority in every
community who expect no inheritance to
assume that man has no natural right to
his fathers property at the latter's death.
But a law escheatiDg to the State the prop
erty of decedents would presently make
the State the only landowner, which
would involve fatal Inconvenience.
The tendency, however, is to q more
general taxation of inheritances. The
present taxes which are levied on inheri-
tauees in the leading civilized countries are
more likely to be increased than reduced.