The Scranton tribune. [volume] (Scranton, Pa.) 1891-1910, 1897-05-20
Has Come to STAY.

Has Come to Stay.
Thus far surprisingly little criticism
has been offered upon the recent en-
actment and approval at Harrisburg of
the emergency direct inheritance tax.
That tax is entirely distinct from the
per cent. tax on collateral inherit
ances, and applies at the rate of per
cent. to all direct inheritances of per-
sonal property exceeding $1,000. 1t was
enacted because of the peculiar revenue
necessities of the time and is to con-
tinue only for two years, unless other
wise ordered but the chances are that
it will remain on the statute books in
definitely. It's yield will, it is estimat-
ed, amount to from 1000, 900 TO $2,000,
600 per annum; and the advantage of
it is that it reaches a class of property
far too liable, at other times, to es-
cape its just share of taxation.
'It is an open secret" remarks the
Philadelphia Times, that millions of
personal property escapes taxation in
this stats. There have been instances
in this city where men of high social
position have returned but little II any
of the large amount of bonds, mort
cages, etc, they have for taxation, and
in several instances, when the fraud
was discovered after the death of the
person thus concealing his property to
avoid taxation, 1t was necessarily dis
covered in the distribution of his es-
tate and the collection of the taxes en-
forced with the penalty. Under the di-
rect inheritance tax law the personal
property of every decedent must come
under the official cognizance of the reg
lister of wills, and all frauds attempted
by concealing taxable bonds. mort
cages, etc, must be discovered" The
extent to which evasion of taxation on
personal property prevails among the
well-to-do is forcibly shown in the last
report of Comptroller Roberts, Of New
York A careful examination into the
records of that state revealed that in 1O7
estates property of this kind worth more
than S215,OOOO 600 was fraudulently con-
cealed from the taX-gatherer. Such a
condition of affairs is simply intoler-
able; and moderate tax on direct in
heritances Is a conservative step in
remedy thereof. The state might with
reason resort to more drastic measures.
1t is not likely that the operation of
this new tax will be resisted in Penn
sylvania on constitutional grounds An
| endeavor was recently made in Illinois
to nullify similar enactment, but
the Supreme court of that state very
sensibly overruled the effort, remark
| ing: THE law of descent and devise
being the creation Of the statute law,
the power which creates may regulate
and may impose cOndit ions or burdens
on a right of succession to the owner
| ship of property to which there has
ceased to be an owner because of death
and the ownership of which the state
| then provides for by the law of descent
| or devise. The imposition of such a
| condition or burden is not a tax upon
| the property itself, but on the right of
succession thereto. To deny the right
of the state to impose such a burden
or condition, is TO deny the right of the
| state to regulate the administration of
a decedent's estate"
This decision, in fact, covers even
more than the Pennsylvania law. for
unlike our new law, the Illinois statute
graded inheritances into different
classes, concerning which fact the court
ruled that mo person inherits property
or can take by devise except by the
statutes, and the state, having power
to regulate this question, may create
classes and provide for uniformity with
reference to classes which were before
unknown" thus sustaining the entire
prirciple of inheritance taxation in the
broadest possible manner. The afiir,
nation in this commonwealth by the
Pennsylvania Supreme court Of the
validity OF the existing collateral inher,
itance tax applies with equal force tC
the principle governing the direct in,
heritance tax, and it is fair to conclude
that this latter tax has come to stay.
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