The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1895-07-17

EXPERIMENTS IN TAXATION.


The system of graduating taxes in pro-
portion 10 wealth and consequent
ability to pay has long been
favorits one among the followers
OF that school OF political economy
which can see no good in existing condi-
tons and desires legislation to prevent
the accumulation OF wealth In the hands
of the few.
The advocates Of this system urge with
Q show OF reason that the graduated sys-
TEN ID more equitable than the proper
tionai system. and as an illustration give
the case of two men, one with an income
of si,000 year. the other with an income
of $1,000. A proportional rate OF I per
cent. would take $40 from the man with
the smaller income and sioo from the man
with the larger. II takes no argument TO
prove the proposition that so Is relatively
a larger sum TO the man with an income
OF 1900 than 500 would be to man with
$4,000 income. In the one case the man
has little margin above hare livelihood
and az the income increases above the
living point the ability to pay increases
much faster. This argument was among
those advanced In support of the Federal
income tax.
In pursuance OF these ideas and to put
tho progressive system of taxation into
effect by way Of experiment. the legisla-
lures or both Ohio and Illinois passed
graduated Inheritance tax laws. on
idenically the same lines. making the
tax increase progressively with tie value
of thu estate.
The law. as far as regards Ohio at
leass. has recently been declared uncon-
stitutional by tho supreme court OF that
state. and there rs little doubt from the
supreme court will follow that decision
ws>n case comes before them.
The Ohio supreme courts reasons for
boiling the law invalid are as follows:
Tho act OF April %. 1884, by its exemp-
ton from taxation OF the right 60 receive
or succeed 10 estates not exceeding sso.-
600 I'm value. and taxing the whole right
Of receiving or succeeding 30 estates which
exceed that sum in value; and In taxing
at higher rate per eentum the right 10
receive or succeed 20 estates of larger
value than TO estates OF smaller value
"a in conflict with section or the bill OF
rights OF the constitution OF this state.
which declares that: "All political power
Is inheren. In the people Government IS
instituted for their equal protection and
benefit and the whole act il. therafore.
unconstitutional and void
The provisions OF the Illinois constitu-
tion. like that Of many Of the other states.
are even more explicit on the subject
Section - OF Article VII. provides 'sThat
the mode OF levying a tax Shall be by
valuation. so that every person shall nay
tax In proportion TO the value Of the
property which he or she has in his or her
possession"
The decision OF the Ohio supreme court
following upon thu decision OF the SUI
preme court OF the United States In the
income tax eases. makes in appear that.
however equitable IT may seem in theory
the principle Of progressive taxation will
never IND its place in thu laws Of any Of
the states except by constitutional amend
ment. and the latter is not likely TO come
unless there is more active public sentl-
nnent worked up IN favor Of such a meas
ure than exists at present
A side effect OF che Ohio decision Is nat
IN minor degree Il has redounae1 20 re
Justification OF Gov. Altgeld in calling Che
Illinois legislature IN special session. The
governor insisted that the action was
necessary because the tax levy provided
was Insufficient 20 meet tbs expenses ~
the state. The legislators attempted 70
show that the levy WAS sufficient. ana
cited The Inheritance tax as one which
would furnish 81 least million dollars
annual revenue. Since the OHIO decision
there IS iittie Doubt That the Illinois Courts
viii decide against the eonstisutionaii,V
OF the Inheritance tsx. and the states
money viii have to - made up from
some ether Sounte.