The News-Herald. [volume] (Hillsboro, Highland Co., Ohio) 1886-1973, 1894-04-26

The two bills of greatest importance passed
by the present Ohio legislature are the Dodge
and Hard bills taxing inheritances. The former
provides for the taxing of direct and the latter
of collateral inherit ,nces. The two will un-
ques tionably add hundreds of thousands Of dol
lars annually to the revenues Of the state
1t will be OF interest to learn from the lips OF
the authors of these two measures what these
laws are expected to accomplish Mr. Dodge
furnishes this statement regarding the law
which bears his name
The direct inheritance bill is based primarily
upon the fact that the state is an heir to every
dying person leaving property The right to
make will rests upon the consent of the living
rather than upon the wishes of the dead. By
nature, when man expires the control Of his
property ceases and his wishes should not be
permitted to control the living against their in.
terests.
In recognition of this principle, the rule of
primogeniture, which formerly prevailed has
been abolished. Although it was the wish of
the descedents that their Oldest sons should
take all their property, the observation of the
living establishes the fact that it was against
their interest; that is, against the interest Of
the state that such rule should prevail Hence
it was abolished.
What is true of the rule of primogeniture Is
also true of the entailment of estates. The un-
limited control at one time prevailing is now
limited in this state to two lives and twenty
one years. This change rests upon the prin-
ciple that it is inconsistent with the rights of
the living that the wishes of the dead should
prevail against their interest
The power to make will has also been limit
ed, so that the testator may not cut off the
widows dover. Such rules as these governing
the inheritance of property, are among the wis
est of our laws, and have been commended by
our ablest lawyers and our wisest statesmen,
mainly because they have a tendency to the
more equitable distribution of property among
our people.
1t was the opinion of Webster, expressed in
his famous speech in 1920, delivered on the
2OOth anniversary of the landing of the pilgrims,
that the stability Of the government itself
rested more upon this equitable distribution Of
property than upon the constitution itself.
1t is observable, however, that these wise
and wholesome laws pertaining to the inheri.
tance of real estate have little or no applica-
tion to the descent and distribution Of personal
property. 1t is also observable that our great.
est estates are no longer in the form of landed
property, but in the form of personal property,
SO that if we would encourage the dis tribution
of large estates of personal property, we must
establish other rules than those pertaining to
prmogeniture, entail and dover.
The imposition of an inheritance tax will have
q tendency to work the distribution of the
| larger estates of personal property in the same
wholesome manner that the law pertaining to
| real estate has worked to the distribution of
| landed property. The right of the state is
| limited only by its necessities. That her needs
| are great at this time is witnessed by her
| empty treasury and the necessity of bonding
for current expenses, so that justice and neces-
| ity are both combined in the inheritance bill
Small estates, unde $4,000, are exempt from
| the operation of the law, but when the state
| amounts to 10000 and does not exceed $4,000
then the low rate Of one per cent is imposed
This is so slight as to be little If more than
| the annual tax and it would seldom happen
that the annual tax would be paid by the ances-
tor and the inheritance tax by the heir in the
| same year, so that this is not a hardship upon
the estate but helps to replenish our empty
| exchequer.
| II the amount is $50 900 and does not exceed
| 500 600, then one and one-half per cent. is i'm
| posed The increase of one.half of one per cent.
is so slight as to make no substantial difference
to the estate, being still less than the rate
| Of taxation in many places, and can not be con-
| sidered as burden upon the estate, supposing
all just taxes have heretofore been paid
II the srm exceeds 800 900 and does not ex-
cced 1900 900, then two per cent Is imposed, and
it is hoped that those who feel that this is a
burden upon their estates will take advantage
of their right TO dispose of a portion of their
property during their lifetime, and thereby
| work double benefit to the state, by distrib'
| uting q part, and paying to The state small
tax upon the balance.
| If the fortune is 100000 and does not exceed
$780, OOO then tax of three per cent is levied
| which will probably have the effect Of giving
| some revenue to the state and distributing
| some portion of the property to others, who
| will in their turn pay some portion OF the taxes
| Fortunes Of s3000 900, and upwards to 300,
| OOO are taxed at the rate of three and one hal
| per cent. and ii is expected that the results
| will be similar to those above stated Between
sums of 100000 and $780, 900 the rate is four pei
cent. and from $500 900 and upwards the tax is
| five D r cent. 1t is quite probable that these
| higher rates will tend to work distribution o.
| tbe laru eSt n which fheV aODv
count of the tendency to escape taxation. L
| such should be the case, the most beneficial re
suits would be realized by the operation of thu
| law, ard the most wholesome aud well-estab
lishedlaws pertaining to the inheritance OF rea
property would have counterpart in the oper
alton of the inheritance tax affecting the dis
tribution of personal property.
1t seems impossible that the law should fai
to accomplish some good purpose, because i
the tax is paid the state is benefited, and If tht
tax IL avoided by the distribution of the estat
there is still benefit, which is probably ever
greater than would result by the payment o
the tax
Itrmay be assumed bv some that what th'
state has gained the individual has lost Tht
is by no means true, but on the contrary IL II
most likely that the individual of great wealth
would also be much benefited by attending Il
distribution OF portion of his estate during
lifetime
Mr. Andrew Carnegie, one OF the richest o
| the r1ch. mas proclaimed WHdt ne CALLS tuc Boe
pei of wealth. to the effect that 1t is the highes
duty of rich man 10 administer upon his owl
estate during his lifetime, so as not to leave al
undivided estate which should overburden hi
children TO their danger and destruction, o
overtax the capacity Of his executors who coul
seldom execute his will in full and in fact In
stead Of the law working hardship, it is NOR
like the quality Of mercy, which is twice blest
1T blesses him that gives and him that takes
IT is mightiest in the mightiest"
Itis expected that the annual income to tn
state will not be less than 500, OO0 and prot
ably will exceed sl,0Oo0OO Estimates hav
been made by q number Of persons and the
vary from $50, 600 to 81, l,0Oo, 0O0 The annual ir
come Of Pennsylvania from the collateral In
heritance law in force there is upwards Q
81. 100000
Mr.. Hard, the young member from Sciot
county, states the purposes and probable enec'
of the law which bears his name thus:
The senate passed the Hard collateral inhe
itance tax bill by vote Of q TO 4. This is on
of the most important taxation bills OF the Sc:
sion, and 1t is estimated that 1t will result
producing a revenue of $3.50 600 annually. TIL
plan OF taxing collateral inheritances has bee