Arizona republican., 1906-12-05

that the business of the country can not be conducted without breaking it. l recommend that you give careful and early consideration to this subject. and If you find the opinion of the interstate commerce commission justified. that ] you amend the law so as to obviate the evil disclosed.
 INHERITANCE AND INCOME TAX. | The question of taxation is difficult f in any country, but it is especially dif- fcult in ours with its federal system of government. Some taxes should on every ground be levied in a small dis trict for use in that district Thus the , taxation of real estate is peculiarly one for the immediate locality in which t,e real estate is found Again. there IS no more legitimate tax for any state i than tax on the frnchises 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 10 impose them in one particular state too often results merely in driving the cor poration or individual affected to some other locality or other state. The na- uonal government has long derived its chief revenue from a tariff on imports and from an internal or excise tax In addition to these there is every reason why, when next our system of taxa tion is revised, the national government should impose a graduated inheritance tax, and. if possible, a graduated in- come tax. The man of great wealth owes peculiar obligation to the state. because he derives special advantages from the mere existence of government. Not only should he recognize this obli- gation in the way he leads his daily life and in the way he earns and spends his money. but 1t should also be recog- nized 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. 1t is quite as necessary that in this kind of taxation. where the men who vote the tax pay but little of it, there should be clear recognition of the danger of inaugurating any such sys- tenn save in a spirit of entire justice and moderation. Whenever we. as a people, undertake to remodel our tax ation system along the lines suggested. we must make it clear beyond perad- venture that our aim Is to distribute the burden of supporting the govern ment more equitably than at present; that We intend to treat rich man and poor man on a basis of absolute equal ity, and that We regard it as equally fatal 10 true democracy to do or per init injustice to the one as to do or per- init injustice to the other.
 am well aware that such a subject as this needs long and careful study in order that the people may become familiar 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 legisla- tors can work out the project in neces- sary detail. But feel that in the near future our national legislators should enact a lew providing for a graduated inheritance tax by which a steadily increasing rate of duty should be put upon all moneys or other valuables coming by gift. bequest or devise to any individual or corporation. IL may be well to make the tax heavy in pro- portion as the individual benefited is remote of kin. In any event. in my judgment the pro rata of the tax should increase very heavily with the increase of the amount left to any one individ- ual after a certain point has been reached. It is most desirable to en- courage thrift and ambition and a potent source of thrift and ambition is the desire on the part of the breadwin- ner 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 object should be to put a constantly increas- ing burden on the inheritance of those swollen fortunes which it is certainly of no benefit to this country to per- petuate.
 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- ceived. Exactly how far the inheritance tax would, as an incident. have the eff feet of limiting the transmission by de- wise or gift of the enormous fortunes in question it is not necessary at pres ent to discuss. It is wise that progress in this direction should be gradual. At first a permanent national inheritance tax. while it might be more substantial than any such tax has hitherto been, need not approximate, either in amount or in the extent of the increase by graduation. to what such tax should ultimately be.
 This species of tax has again and again been imposed, although only tenn porarily, by the national government. Ii was first imposed by the act of July 6, 1797, when the makers of the constitution were alive and at the head of affairs. It was a graduated tax. though small in amount, the rate was increased with the amount left to any individual, exceptions being made in the case of certain close kin. A similar tax was again imposed by the act of July 1, 1862. a minimum sum of one thousand dollars in personal prop erty being excepted from taxation. the tax then becoming progressive accord- ing to the remoteness of kin. The war revenue act of June 13. 1898. provided for an inheritance tax on any sum ex- 1.ra .F sa,, hnr nd