The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1897-02-20
1t Was Rejected by the House
Yesterday.
AN INTERESTING DEBATE
THE VOTE WAS THIRTEEN FOR
AND TWENTY-FIVE AGAINST.
a Committee Appointed to Act With
the Senators in Entertaining the
Visiting Idaho Legislators-Re-
ports From Committees.

The lower house of the Legislature
yesterday, by an overwhelming vote,
rejected a bill providing for an income
tax and an inheritance tax. But ten
Democrats and three Populists voted
for it, and the negative vote was made
up of % Democrats and two Repub-
licans. The debate upon the measure
occupied the greater part of the after
noon and the objections urged were
confined chiefly to the form Of the bill,
and were not wholly directed against
the principle of an income tax.
The bill was house bill No. 10, by
Kenner, and before the debate opened
Thomson expressed desire, in sar-
castle way, that Shepard inform the
house whether it was constitutional.
1T is customary. when asking a
lawyer for advice, to deposit retain
ing fee,' replied Shepard
KENNER DEFENDS IT.
Kenner, the author of the measure,
made a brief statement Of the pro-
visions of the bill 1t provided for a
graduated tax on the excess OF all IN
comes above 1000, the rate ranging
from per cent UP to per cent, and
for a tax on the excess of all inner
itances above 81, 600, the rate ranging
from per cent up to per cent. he
thought the revenue that would be de-
rived from these sources would equal
the interest on the entire bonded in
lebtedness of the state The supreme
Court of the United States had. by
majority of one, reversed its own de-
cision and decided that the federal law
taxing incomes was unconstitutional,
but this decision could not affect
state law, as the decision was based on
.ie-fo Of 7,n fnfnT n
-stitution not applicable to states. This
tax was specially authorized by pro-
vision of the Utah state constitution
The purpose was to collect revenue
from sources from which none had
been collected hitherto. AS to the in
heritance tax, the beneficiarles OF the
legacies had contributed nothing to the
wealth of the state. The legacy was
something they had not earned. 1t
came to them as a gift and the state
protected them in the enjoyment OF
their inheritance. There was no rea-
son why they should not contribute
something to the support of the state.
It was simply a question of equity
whether the people who enjoy large in
comes and inheritances should not con-
tribute something to the support of the
state that protects them.
Lennon was not opposed to an in
come tax. nor to a tax on large
legacies. as proposed by the bill.
Mangan offered an amendment to
overcome this objection. which raised
the minimum legacy to $4,000, and pro-
vided for a graded tax, commencing at
2 per cent on $4,000, and increasing to
10 per cent on $4,000 and more.
Shepard thought the bill was consti-
tutional, but he had other objections
to the measure. He regarded an income
tax as form of double taxation. for
those who were taxed on incomes
would also be taxed on their property.
Persons of moderate means would bear
the brunt Of such a tax, as the men of
large incomes would evade the tax. He
also believed an inheritance tax would
be a double tax. He Offered an amend
ment, by inserting the word net be-
fore the word income. as the law should
apply only TO net incomes.
Sloan favored an income tax and said
he would support the bill if it was ap-
piled to net incomes. The law should
be so framed as to reach the class of
people intended to be reached
Kenner cOntended that the word
met" was superfiuous. The word in
come" meant the surplus gains, after
paying all expenses.
A HOT ONE FROM SLOAN
Sloan replied that he believed Kenner
had gotten his dictionary mixed UP
with his doctrine ana covenants. The
latter provided that man should pay
20 per cent of his income.
Murdoch offered, as an amendment,
a new income tax schedule, fixing the
rate at l Der cent on incomes from
81, 900 to $1,000; , per cent on $1,000 to
$40 600: 3 per cent on $4,000 to $40, 000
per cent on all above $40 900. Kenner
accepted the amendment.
Greer moved to strike out all of sec
> ,.a1p - I'll,
Thoreson spoke in favor of the in
heritance tax, and Sloan opposed it.
The latter dio not believe, when a man
provided the means to prevent his
children from becoming a burden upon
the state that the state shoulf punish
the children because he died.
Murdoch did not believe the legisla-
ture should undertake to accomplish
too much at one time. It would be
doing well enough if it succeeded in
establishing the income tax.
Romney favored the inheritance tax
and was unable to see how it would
work an injustice TO any one The
man who inherited $4,000 could not
object to the payment of $500 to the
state. But he was opposed to an in
come tax, and believed its effect would
be that the interest on stocks and
bonds would be paid elsewhere than in
Utah.
Greer lHOuSul lndI Wnen a man mad
accumulated a fortune he had a right
TO distribute it wherever he pleased, |
and it was none of the states business.
Kenner declared that none of the OBJ
jections that had been raised had any
bearing on the question, and the MEM
bers who raised them did not under
stand the provisions of the measure.
The bill simply asked a very little for
the state where very much was given
to the legatee. The inheritance tax
was one of the most equitable systems |
of taxation that could be devised. It |
was not the person that the tax was
levied upon, but the inheritance. He |
demanded to know whether the men, |
bers were not elected on a platform
that pledged them to an income tax.
Creer's amendment TO strike out the |
Inheritance tax provision was defeated |
by a vote Of Is TO 10.
Sloan offered an amendment fixing |
the rate at l per cent on all estates |
exceeding $50. 00o, which was rejected.
Ray offered a substitute for the Man /
gan amendment, fixing a new inherit |
tance tax schedule, which was adopted /
1t was as follows: $1,000 to $40, 1000, |
per cent; $4,000 to $40, 600, 2 per cent; |
500, 600 to $50, 000 per cent: 1000 to /