The Roanoke times. (Roanoke, Va.) 1897-1977, 1897-02-12
THE INHERITANCE TAX.

II very concise anu interesting review OF
this important question, and are well cal
culated to impress upon the average citi
zen the defects of the present system, and
the necessity for its complete modifica
ton: in order that the State may reap
some benefit from the large holdinps of
personal property which the laws are
specially designed to protect. Comp
troller Roberts says the collection of the
succession or collateral Inheritance tax in
New York State last year was not attend
ed with as satisfactory results as could
have been desired; that the amount was
not rs large as in the year previous, while
the difficulty and expense of the work
seems to be increasing which, he believes,
is largely due to the ingenuity and skill
nf lawyers in drafting wills and deeds Of
trust so as to defeat the provisions of the
law.
The theory of the law is, that IL tax is
due upon an estate az the time of the
]eSth of the owner, and that it should he
paad after the lapse of n reasonable time
lection Of complicated conditions, ms to
where the portions of che estate may uIti-
mately go, the. collection of this tax is
not only delayed indefinitely, but some
times entirely avoided. In New York at
present an estate going to heirs of the
blood pays tax of per cent, while one
going to collaterals and strangers of the
blood pays per cent. All estates going
TO lineais (heirs of the BLOODY. real and
personal, under $40, 900 ar exemp, from
taxation, and only the personal property
above $4,000 is taxable. Estates OF less
than $500, real and personal, going to col
laterals are exempt, but both the realities
aud personality oc the oollaterals above
religious corporations and to bishops are
exempt. This attempted grading under
the present law does not accomplish all
that should he attained, and the comp"
troller pertinently asks, III. IAN estate of
less than $40, 600 should be exempt, why
should not zone millions greater pay
higher rate than IA $4,000 estateYn "A
large estate he snys, would certainly
@e less burdened 10y the payment of II
higher rate than II small estate would he
10y the payment of n lesser one.-'
The principal burden of the Inheritance
vaN falls upon personal properly, and no
class of proper o. is better entitled to bear
this kind of a tax than personal This,
hoy ~ H.,
escapes taxation during the tife of it's
sswner, while it is "a wel-knowsl fact that
in New York SKATE of late years it's in
crease in value has been much more rapid
than that of leal estate. In 1895 the
eaualized value of taxable personal prop
erty was only &i39, $50 ,526, against n real
estate valuation of $3.90S, $50, 3111, yet
notwithstanding the slim showing as to
the value of personal property, the comp
troller cites the fact that since the act of
1856, imposing IL tax of one eigsa til Of one
per cent for theprivilege of organization,
the sum of $2l0l6, 001 AGA has been in
vested in the capital of corporations,
nearly five times the tDtal amounat of per-
sonal property now upon the taS rolls CT
the State ln.answer therefore, to the
question as. ito where all this personal
property IS, the comptroller says itevades
taxation. To remedy this evil he recon-
of the property-holdcr he large enough to
make up for the previous year of eXemp-
tion. 1t would then he Il hardship To 10
one. The decedent would have had the
use of it during life, and the beneficiary
would simply pay 81 fee for the privilege
of rejoicing an estate, in the creation OF
which he had little III no hand, and which
the government ny favors conferred had
helped largely to build up.
In view OF the evasion and loss of reve-
nue. to the State, he asks If it would not
Il wis TO amend the inheritance tax law
by adding another section to the old rate
of from / 10 ) per cent. as follows: ) per
cent. on estates of $1,000 900 and less
than 81, 900, 600; 10 per cent on estates of
5000, 900 and less than $3,000,000; II
per cent. ION estates Of $3,000,0O0 ;lnd
over.
Had such law as ssthe above been in
force since 1898, it would have made a
difference in the amount collected by the
State of New YORK from this tax of over
$4,000. 0N. by increasing the inheri-
lance tax, not only would the ssreyenue of
the State l'e enhanced, but the supposed
tendency OF such il tax to dissipate.
Great fortunes might prevent the accu-
mutation of immense wealth in The hands