The Lexington intelligencer. [volume] (Lexington, Mo.) 1901-1949, 1906-12-08
INHERITANcE AND INCOME TAX.
Both o. These Are Recommended by
the President.

any country, but II is especially difficult in
ours with IT'S federal system OF govern
ment. Some taxes should on every
ground be levied in a small district for
use In that district. Thus the taxation
OF real estate Is peculiarly one for h
immediate locality in which the real es-
tate Is found. Again, there - no more
legitimate tax for any state than a tax
on the franchises conferred by that state
upon street railroads and similar corpor-
ations 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 IAN
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 in merely driving the cor
poration or Individual affected 70 some
other locality or other state. The ma
tional government should Impose q
graduated inheritance tax, and. II pos
sible. a graduated income tax. The man
OF great wealth owes a peculiar obligation
advantages from the mere existence or
government. Not only should he rec
ogniEe this obligation in the way he leads
his daily life and in the way he earns
and spends his money. but Il should also
be recognized by the way In which he
pays for the protection the state gives
him. On the one hand, II Is desirable
that he should assume his full and proper
niihlt VI lIG DuIOtM u AaNdNlOns ph AhC
other hand, II is quite as necessary that
in this kind of taxation. where the men
who vote the tax pay but little of IL,
there should be clear recognition OF the
LANCER OF inaugurating any such system
save In a spirit of entire justice and mod
GRAFTON. Whenever we. as a people, un-
dertake to remodel our taxation system
along the lines suggested, we must make
II clear beyond peradventure that our
aim is to distribute the burden Of sup
porting the government more eQuitably
than at present, that w intend to treat
rich man n poor man on a basis OF
absolute equality, and that we regard u
as equally fatal to true democracy to do
or permit injustice to the one as to do
or permit injustice to the other.
Subject Needs Careful study.
/ am well aware that such a subject
as this needs long and careful study IN
order that the people may become famil-
lar with what Is proposed to be done,
ing with wisdom and self-restraint, and
may make up their minds just how far
they are willing to go in the matter;
while only trained legislators can work
out the project In necessary detail. But
/ feel that in the near future our nation
al legislators should enact a law provid-
ing for a graduated inheritance AK BY
which a steadily increasing rate or duty
should be put upon all moneys or other
valuables coming by gift, bequest or
devise to any Individual or corporation
1t may be we'll to make the tax heavy
In proportion 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 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 breadwinner to leave his chill
dren we'll off. This object can be attained
| nv making the tQN VprV small on mO06F-
ate amounts of property left; because
the prime object should be to put q con-
stantly Increasing burden on the inner
itanoe OF those swollen fortunes which
II is certainly Of no benefit to this coun-
try to perpetuate.
There can be no question of the eth
ical propriety of the government thus de-
termining the conditions upon which any
gift or Inheritance should be received.
Exactly how far the Inheritance tax
would. as an incident, have the erect OF
limiting the transmission by devise or
gift Of the enormous fortunes In question
II is not necessary at present to discuss.
1t is wise that progress In this direction
should be gradual. At first q. permanent
be more substantial than any such tax
has hitherto been, need not approximate,
either In mount or In the extent OF the
increase by graduation. to what such Q
tax should ultimately be.
inheritance Tax Constitutional.
This species OF tax has again and again
been imposed, altho only temporarily, By
the national government. II wal hrsc
imposed by the act of July 6, 1871. when
the makers Of the Constitution wero
alive and at the head OF affairs. 1t was
a graduated tax; tho 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, 1882; a minimum sum Of
q M u, Narunnn1 prnnarfu baip0 aYContnd
from taxation, the tax then becoming
progressive according to the remoteness
of kin. The war-revenue act OF June IL
1898, provided for an inheritance lax On
any sum exceeding the value OF $4,000,
the rate Of tax increasing both In accord.
ance with the amounts left and In &C
cordance with the legatee's remoteness
OF kin. The supreme court has held that
the succession tax Imposed at the time
of the civil war was not a direct tax but
an impose Of excise which was both con-
stitutional and valid. More recently the
court, in an opinion delivered by Mr..
Justice White. which contained an ex-
ceedingly able and elaborate discussion
Of the powers OF the congress to impose
death duties, sustained the constitutions
ality of the inheritance tax feature of the
war-revenue act of 1895.
IL Income Tax COnstltutlonaIF
In its Incidents. and apart from the
main purpose Of raising revenue, an
income tax stands on an entirely differ
ent footing from an inheritance tax, be-
cause It involves no question Of the per-
petuation of fortunes swollen to an un-
healthy size. The question is in its
essence a question of the proper adjust
ment Of burdens to benefits. AS the
law now stands II Is undoubtedly difn-
cult to devise a national income tae
which shall be constitutional. BUA
whether it is absolutely impossible ie an
other question; and If possible II Is most
certainly desirable. The first purely in
come tax law was past by the congress
in 1861, but the most important law deal
ing with the subject was that of 1894.
This the court held to be unconstitu-
tional.
The question is undoubtedly very In
tricate, delicate, and troublesome. The
decision OF the court was only reached
by one majority. II Is the law OF the
land, and, OF course, Is excepted as such
and Loyalty obeyed by all good citizens.
Nevertheless, the hesitation evidently
felt by the court as a whole in coming
TO a conclusion. when considered to-
gether with the previous decisions on
the subject, may perhaps Indicate the
possibility OF deVising a constitutional
income-taK law which shall substan-
italy accomplish the results aimed
at. The difficulty of amending the con-
~stitution is so great that only real me-
cessity can. Justify a resort thereto.
Every effort should be made in dealing
with this subject. vas with the subject
OF the proper control by the national
government over the use OF corporate
wealth in interstate business, to devise
lagfelaffon which without SINH ocffon