Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1906-12-05
INCOME TAX DISCUSSED.
Both This and Inheritance Tax Strongly
Advocated,

Both This and Inheritance Tax Strongly
Advocated.
The question Of taxation Is difficult
in any country, but 1t is especially diff
| ficult in ours with its federal system Of
| government. Some taxes should on ev-
cry ground be levied in small dis
| trict for use in that district. Thus the
taxation of real estate is peculiarly
one for the immediate locality in which
| the real estate is found. Again, there
| Is no more legitimate tax for any state
than tax on the franchises conferred
by that state upon street railroads and
similar corporations which operate
wholly within the state boundaries,
sometimes in one and sometimes In
several municipalities or other minor
divisions Of the state. But there are
many kinds Of taxes which can only
be levied by the general government so
as to produce the best results, because,
among other reasons, the attempt to
impose them in one particular state too
often results merely in driving the
corporation or individual affected to
some other locality or other state. The
national government has long derived
| its chief revenue from Il tariff on i'm
| ports and from an internal or excise
tax. In addition to these. there is ev-
| cry reason why, when next our Sys-
| tenn of taxation is revised. the national
| government should impose graduated
| Inheritance tax and. If possible, 4 grad
| uated income tax. The man Of great
| wealth owes 4 peculiar obligation to
| the state because he derives special
| advantages from the mere existence of
| government Not only should he recog-
niZe this obligation in the way he leads
his daily life ard in the way he earns
and spends his money. but it should
also be recognized by the way in
| which he pays for the protection the
| state gives him. On the one hand, it
| is desirable that he should assume his
! full and proper share Of the burden of
| taxation; on the other hand, it is quite
as necessary that in this kind Of taxa
ton, where the men who V, ; the tax
| pay but little of it, there should be
clear recognition Of the danger of in
augur;tins, any such system save in
| spirit Of entire justice and moderation.
Whenever we rs Il people undertake to
remodel our taxation system along the
lines suggested we must make it clear
| beyond peradVenture that our aim is to
distribute the burden of supporting the
government more cquitably than at
present, that we intend to treat rich
man and poor man on q basis Of aDs0-
lutte equality and that we regard 1t as
equally fatal to true democracy to do
or permit injustice to the one as to do
or permit injustice to the other.
am we'll aware that such Il subject
as this needs long and careful study In
order that the people may become ia
miliar with what Is proposed to be
done. may clearly see the necessity Of
proceeding with wisdom and self re-
straint and may make up their minds
just how far they are willing to go in
the matter, while only trained legiS-
lators can work out the project in
necessary detail. But feel that in the
near future our national legislators
| should enact law providing for 4
graduated inheritance tax by which n
steadily increaSil" rl!r Of duty should
be put upoa all m'IryS or other val
uables conf. by :s:ft bcuuoSt or de-
wise to any individual or corporation.
| 1t may be well to make the tax heavy
In proportion as the individual bene-
. Ii To-, IN,
my Judgment, the pro rata of the tax
should increase very heavily with the
increase of the amount left to any one
| individual after a certain point has
been reached. 1t Is most desirable to
encourage thrift and ambition. and a
potent source Of thrift and ambition
is the desire on the part Of the bread
winner to leave his children well off.
This object can be attained by making
the tax very small on moderate amounts
of property left, because the prime OBJ
ject should be to put constantly In
creasing burden on the Inheritance Of
those swollen fortunes which it Is GER
tainly of no benefit to this country to
perpetuate.
Ethical Propriety Unquestioned.
There can be no question of the eth
ical propriety of the government thus
determining the conditions upon which
any gift or Inheritance should be re-
ceivcd. Exactly how far the inner
itance tax would. as an incident, have
the effect of limiting the transmission
by devise or gift of the enormous for
tunes in question it is not necessary at
present to discuss. 1t is wise that
progress in this direction should be
gradual. At first a permanent ma
tional Inheritance tax, while 1t might
be more substantial than any such tax
has hitherto been, need not approx
mate, either in amount or in the ex-
tent of the increase by graduation, to
what such tax should ultimately be.
This species Of tax has again and
again been imposed, although only
temporarily. BY the national govern