The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1905-12-31
An Epochal Decision.

a FTER three unsuccessful attempts, Minnesota
~ has at last an inheritance tax law that
tracks with the state constitution and will BRING
into the state treasury share OF the fortunes pc
queathed by departing men OF wealth. Inc statute
of 1905 was loosely drawn and target for the
LAWYERS but the supreme court has upheld it in an
opinion that takes broad ground and construes the
legislatures meaning, instead of condemnlng the
law for verbal errors. The opinion by Judge Brown
is strong and clear in it's phrasng, leaving no doubt
as to the mind Of the court and the reasons which
actuated it in reversing three probate judges and
three district judges.
The court holds that the classification Of be-
quests made in the law does not traverse the equaty
provisions Of the constitution. The tax IS equal
among the members of each class, and there is rea-
son for placing higher rate on larger requests.
The legatee who receives 100000 is able to con-
tribute larger share of it to the state that the
who gets 100000 and this is coming to be re,and
more a measure of fairness in taxation. The opin-
ion quotes with approval the statement Of Seligman
on taxation that liability faculty to pay has
come to be the test Of determining the business OF
taxation It is 'not only the basis Of taxation but
the goal toward which society is steadily working
It lies instinctvely and unconscously at the bottom
of all our endeavors at tax REFORM
Judge Brown says in his opinion: "The equity
and fairness of this theory in its broadcast sense
Wnen we feHecC upon the vast lOftuueS dcculudteu
as the result of especially advantageous opportun
tiles and facilities, not possessed by people in gen.
eral, is apparent and obvious. It works njus-
tice harm to those thus fortunately situaed does
not injuriously affect productive industrial agen-
cies, and relieves, in measure, those with lesser
opportunities, to whom taxation is always an ex-
treme burden.'
It is refreshing and encouraging to see SUI
preme court, the bulwark of our constitution and
liberties take such advanced ground on the sub
ject Of taxation. We have taxation amendment
to the state constitution which will be voted on
at the next general election The next step after
that amendment is adopted will probably be the in
tax. law taxing large incomes on the basis
of liability to pay is the logical sequence Of the
inheritance tax decision, and that decision fore
shadows broad treatment by the court toward an
income tax law other designed to reach
"vast fortunes accumulated as the result of espe-
cially advantageous opportunities and facilities"
Our inheritance tax law, as the court has said
works no injustice. It's exemption is liberal, and
its terms fair Morally there no question as to the
right Of the state, which guarantees to heirs the
protection Of the laws and the succession Of prop.
erty, to lay tax the right of succession
The law promises to be great source Of revenue
altho somewhat uncertain We cannot count defin.
itely revenue from such source, and it will be
unWlse for the state to anticipate returns from the
tax in making appropriations. It will, however
bring in millions to the treasury within the next
few years. Added to the railroad taxes and other
special revenues, it will soon wipe out the direct
tax levy tor state purposes, and relieve those etc
whom taxation is always an extreme burden''