The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1902-01-10

MINNEAPOLIS JOUR;
idly growing sentiment In favor of an in
come tax. whether it shall be ultimately
adopted or not, suggests reason for
legislative freedom in revenue measures.
1t is believed that the bill amendatory
of Article 8 of the constitution. framed by
the commission and appearing in the app
ipendix, will, without danger to the public
welfare, restore to the legislature neces-
sary powers of which it is now unwisely
deprived It's provisions have been adopt
ed after q careful study of the constitu-
tions of many states and nearly every
feature has been adopted from one or more
of such constitutions. Wisconsin,. whose
industrial forces are not essentially diff
ferent from our own, has, during it's en-
tire statehood, existed under constitu-
ton whose only provision restrictive of
the powers Of the legislature is as fol-.
lows:
"The rule of taxation shall be. uniform
and taxes shall be levied upon such prop
erty as the legislature shall prescribe
The constitution Of New Jersey imposes
no other limitation than the following
Property shall be assessed for taxes
under general laws and by uniform rules,
according to it's true value"
While the commission has given to the
subject conflded to it much study and
thought, it realized far more fully at the
close than at the commencement Of it's
1abors that the subject presents problems
whose solution must be worked out by
future thought and experience. It is to a
permanent tax commission rather than
one whose life was compassed by less than
ten months that the work should be car
ried on. The legislature should be free
to give it's sanction by appropriate legis-
lation to those wise reformatory meas
ures which such a body may recommend
for It's consideration.
FOREST RESERVE.
Gentlemen deeply interested in the sub
ject Of forest reserve presented with great
force and earnestness the Importance of
immediate action by the state looking to
the preservation Of our rapidly disappear
ing forests.
AS an efficient means to that end, it was
urged that all non agricultural lands &C.
quired by the state in the enforcement of
it's revenue laws be reserved for forest
purposes.
It did not require argument to- convince
the commission of the great economic
value to the state of forest areas within
its borders. But conceding their value
and the Importance Of early and judicious
action by the legislature with view to
their preservation, it seemed quite beyond
the power Of the commission to incorpor-
ate within revenue bill any provisions
with respect to forests. -,
I The preservation of forests is a sub
ject wholly foreign to the contemplation
Of the law by which the commission was
created, and could not, therefore, be prop
erly embraced within any measure it
| might frame. Whatever policy the state
| may adopt with respect to forests must be
| expressed in independent legislation.
INHERITANCE TAX.
Taxation Of estates of decedents has
| been in vogue in this country for many
years. ut is found in almost every coun-
| try; and the more democratic the coun-
try, the more developed is the tax (Sel-
| tgman). Its first appearance on this side
| the waters was in 1926 when the state OF
Pennsylvania enacted law taxing such
! estates. Several states have followed
/ with similar laws in more recent years.
The first attempt at this species Of tax
alton by this state was the act of 1885,
which was held invalid because the taxes
| sought to be imposed by it were not
equal within the constitutional mandates
Assuming evidently that it was requisite
in order to properly legislate upon the
! subject, that the constitution must have
given express authority, the Legislature
submitted the amendment which !. was
adopted in 1896, reading as follows:
| "And provided further that there ma,
be by law levied and collected a tax upo1
all inheritances, devises, bequests, lega
cies and gifts Of every kind and descrip
ton above fixed and specified sum, O
any and all natural persons and corpora
! tions. Such a tax 'ab54en such exempted
sum may be uniform, COR # may be grad
I ed or progressive, but Shall not exceed
a maximum tax Of per cent?
The Trainer Of the amendment appar.
| emily misconcetved the power of the legis.
lature as it then existed and was mos
unfortunate in the language employed
There can be no doubt that the power tt
! tax the estates or property of decedents
then existed, so long as the method
adopted conformed to the rule Of equal.
/ ty. Strangely enough, the amendmen,
displays on the part of It's Trainer a mis-
conception also of the character Of The
legislation of other states. With few
! exceptions the tax is imposed by those
states either directly upon the estates Of
tdecedents, or upon the transfers of thu
property of the decedents, while the
amendment in question requires it to b.
imposed upon "all inheritances, diveses
requests, legacies and gifts The con
stitution had been more wisely framed ]
it. had simply provided that the Legislature
tax upon the estates of decedents Unde
! tax upon the estates Of decelents. Unde
the present form Of the constitution
it is impossible to allow an exemption o
$4,000, as at present, and realize adequate
? revenue from the tax, as the exemption
must apply to every Inheritance, devise
bequest, legacy and gift. To illustrate
A decedent having an estate Of $4,000 ha
only to devise and bequeath it to fiv
Of his lineal descendants in equal amount
in order to wholly defeat the tax. IT, o.
the other hand, the tax were impose
upon the estate, a single exemption
would be permissible and $4,000 OF tn
estate could be taxed. !.
The legislature Of 1897 attempted t.
frame law under the present form of tn
constitution, but made two grave mis-
takes: 1t imposed the tax only upo1
personal property when it should hav
|'been imposed also upon real property. l
Imposed 1t upon the entire Inheritance
devise bequest, legacy and gift of $4,000
! when it should have been.upon the exces
| above that amount. For these reason
the statute was held invalid by the su
,preme court in the case Of Drew vs.. Fiji
l79 Mimi, u.s..
At the last session Of the legislator
a further attempt was made to legislat
upon the subject; but, as yet, the validit
OF the act has not been adjudged by tn
courts: without expressing any opln1o
as to its compliance with the constltu
ton, the Commission deemed 1t adv1saDl
to radically change some Of it's provisions
The provisions of the bill relating TO n
subject are embraced within Title XVII
lit will be found by comparing those pro
visions with the act of 1901, that the
,.ec. Co.., - =, Tho. fol1owinq Darticu