The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-12-15
TEE INHERrrANcB rAx.
Remarhs On the Rresiosns''
LSnG mango neeammcndafion.

unenmeu0un WenBaFAa On inc R~reefoent's
Lens mango Reeammendatiea-
From an h,fsrvtsv gRA Rsprsssnfaftvs NeCdH tp ~
Springfield Rspsntcan.
The recommendation in the Presidents
message OF q graduated Inheritance tax
has perhaps the effect Of raising q moot
question The President does not state
that we need more revenue; indeed, we
are low having a comfortable surplus. II
the revenue were needed the proposition
would be practical. As il In now the sug-
gestion is not fiscal. but social. II h ap-
parently not TO raise q needed revenue, but
for the socialistic purpose OF limiting the
size OF fortunes. shall not discuss whether
IL Ia wise nc the present time for the national
Government TO enter on that field, only %
far a to say that II the plan were once
embarked upon there would be an inevt-
table tendency TO lower the limit OF size OF
the inherftances subject 70 the high rates.
How far this tendency would go Ia Of oourse
q mere matter Of conjecture. But viewed
a. q fiscal proposition an inheritance tax
In undoubtedly an uno~bjectionable way
OF raising revenue, although I do not mean
to say that 1t should be employed for pur-
poses Of national revenue. Under
-ybJeru tnS ubDeg exptnblVt tuuCt1Oho VI
government are exercised by the States
and municipalities. They bear the enor-
mously expansive burdens OF public edu-
cation, protection against fire, oonstruo-
ton OF roads, maintaining police forces
and courts which have jurisdiction over far
the greater number Of controversies, while
the chief function Of the national Govern
ment is to provide for common defence, .
provision which nature had already gener-
ously made for US by giving a. bulwarks thu
two oceans and part Of the advantage Of
which We inoonsiderately threw away. Be-
fore the Spanish war the cost Of the national
Government. not including post once az
p~enditures, was about Is per capita, and
there h no need for material increase over
that cost. The States are prohibited from
levying customs duties. That fountain OF
revenue Is entirely reserved to the national
Government, and they u have some
important sources to which they may resort
in order to carry on their work. The in
heritanoe tar Is q very proper instrument
for the State TO employ. OF course II the
national Government should also levy an
inheritance tax and raise even twice the
amount IL now raises by taxation, there Ia
no oOuDJ uAHy Ways WOuAu 70 uoNA5cu tpk
expanding Il.
Il do not, OF course, assume to more than
hint at someo Of the important considerations
wh.ch we must bear in mind in deciding
whether We shall impose this tai Blu
think the question should be carefully
studied. We are having an era Of Ill con-
sidered Legislation. The prevention Of re-
bates, for instance, was put forth as the
ground for commission rate making when
it Is now perfectly manifest that there Is
no logical connection between the two
subjects, and that the statute books already
contained a law against rebates which only
needed enforcement TO prove its great
efficiency. A rational economic discussion
is what IL wanted. and especially do We
need to divest ourselves Of the notion for
the time being that the world is full Of graft
which it is the purpose Of h law TO do
away with. II we approach the question
from that hysterioal plane We shall reach
no sound economic conclusion.