The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1903-02-25
THE INHERITANCE TAX.


already reached that point AS this State
has more corporations and licenses be-
come more valuable, the day of that COM
ing will be FASTENED. In the State of
New York this ideal condition has already
about been reached. The State of North
Carolina has in the last few years, large
ly increased the indirect license and in
come taxes, and the more one studies the
report of the State Taxation Commission
the more he sees that, while the time is
not ripe for it in this State, that report
foreshadows the future taxing policy for
the State government in many respects.
When the revenue bill came before the
House, there was some opposition to the
inheritance tax, but it passed. Several
strong speeches were made in favor of
it, Hon. r. A. Doughton, Chairman of
the Committee made a very clear and
able presentation of the question. 1t is
so excellent that we give it below:
IT is NO NEW THING.
The system or policy of taxing in
heritances is not of modern origin. Laws
relating to this tax were in force among
the Romans. and perhaps Teven earlier
They have existed in Enelhn for more
THAI a century with uniform success
They exist today in Germany, Austria
France, Switzerland. Holland, Russia.
Italy, Spain, Portugal, Greece, Denmark,
Sweden, Australia, Canada and other fcr-
eign States and colonies.
In this country it has proven very
popular. For nearly eighty years ii has
been the law in Pennsylvania. North
Carolina was among the first States to
adopt it. 1t was adopted here in 1886,
and worked well until 1860. Then came
the war and ii seems not to have been
enforced after 1868, and in 1883, it was
omitted from the revenue law. 1t was
re-enacted in 1897 and 1901 And it is
now the law not only in North Carolina.
but in New York. Massachusetts,, Maine,
Ohio, Illinois, California, Connecticut,
New Jersey, Pennsylvania, Maryland,
Virginia, West Virginia, Delaware Ten
ne sseee and in fact in the great majority
of the States.
in 1926; Louisiana adopted it in 1923;
Virginia in 1874; North Carolina in 1916;
Maryland in 1862 and so on.
1T is A JUST TAX.
The fact that so large a part of the
most civilized and enlightened States of
the world approve it woull ordinarily
be sufficient proof not only of the wis
dom but of the justice o: such a law
But there are other rea sons. In our
State the law applies only to personal
and, as is well known, this
class of property escapes taxation more
than any other. 1t is therefore but
just that this class of property should
be subjected to this tax to the relief
of real property, which, in the very ma
ture of things, cannot be concealed. 1t
is quite certain that a great deal of
never pays any tax to the State
except in this way. Ii is not only just
and wise but it is lawful and not a con-
fscation as some may say. After all,
the right to take this class of property
by will is a mere privilege of the NUM-
cipal law, to be changed, modified or
in the discretion of the State,
and not a natural right. Where there is
no will the child gets his dead fathers
personal property only because the State
says he shall.
IT Is NOT BURDENSOME.
No tax can be less burdensome and
interfere less with the productive AMI
industrial agencies of society. 1t does
not take from a man that which he has,
but merely retains a small per cent for
making it possible for. him to get speedily
and certainly that which he has not and
never has had
Over ten years ago England wss rails
ing 500, eco 900 revenue by this means, and
is now raising a much larger sum.
New York last year raised S4,000.ooO,
or fourth of its entire State revenue
in this way.
From 1876 to 1860 North Carolina rails ed
a considerable sum by this means; and
now, although the law has been in
force only very short time and applies
only to personal property. we are getting
SA240.69 year from this tax.
IN KEEPING WITH AMERICAN IDEAS.
There never was a time in the history
of the world when the power of aoney
in skilful hands was so great as the
presents or when the use of that power
was made so conspicuous The new
forces ct its command are augmenting
il with wonderful, rapidty. Already the
sceptre has passed from the sword to the
house. The fact that one jndi-
vidual may monopolize hundreds Of ILL
lions of the wealth of the nation AMI
pass il at last by will to another, with
alb it's possibilities. is growing tot.rce
of uneasiness among all classes of So
ciety. Hence it is that in at least che
of the States, Illinois, it has been seri-
ously proposed to absolutely limit the
amount which one person can inherit
from another. Whether this is wise or
not will admit of discussion, but at any
rate, the inheritance tax at moderate
rate is a wise way to keep on the statute
books and before the people the fact
that no matter how powerful and rich
an individual may get he holds his
wealth and transmits it at his death
only by sufferance of the State.
THE RATE MODERATE AND LOGICAL.
Our rate is very moderate as COM
pared with that of other States and