The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1906-12-05


some other locality or other State. The
National Government has long derived it's
chief revenue from tariff on imports
and from an internal or excise tax. In
addition 10 these there Is every reason
why, when next our system Of taxation
is revised, the National Government
should impose a graduated inheritance
tax. and, II possible, a graduated income
tax. The man of great wealth owes a
peculiar obligation to the State. because
he derives special advantages from the
only should he recognize this obligation
In the way he leads his daily life and
money, but 1t 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.
1t 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 danger
OF inauguratng any such system save
In spirit OF entire justice and modera-
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
supporting the Government more equit-
ably than at present, that We intend to
treat rich man and poor man on basis
OF absolute equality; and that we regard
TO do or permit injustice TO the one
as to do or permit injustice 10 the
other.
Needs Careful Study.
am well aware that such a subject
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-
strant and may make up their minds
Just how far they are willing to go In
the matter; while only trained legisla-
t,,
sary detail. But | feel that in the near
future our National legislators should
enact a law providing for a graduated
inheritance TAX by which steadily IN
creasing rate OF duty should be put upon
all moneys or other Naluables coming by
gift, bequest. or device TO any Individual
or corporation. 1t may be we'll to make
the tax heavy in proportion as the indi-
vidual 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 10
any one individual after certain point
has been reached. 1t Is most desirable
to encourage thrift and ambition. and n
potent source OF thrift and ambition is
the desire on the part Of the breadwin-
ner to leave his children well of 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 increasing
burden on the inheritance of those swol-
| len fortunes which II Is certainly OF no
htlfll W lDlS country W D'lHSNbd''.
Reviews Inheritance Tax.
There can be no question of the ethi
cal propriery Of the Government thus
any gift or Inheritance should be re-
ceived. Exactly how far the inheritance
tax would, as an incident, have the ef-
feet Of limiting the transmission by de-
wise or gift OF the enormous fortunes
in question ii is not necessary a present
TO discuss. It is wise that progress In
this direction should Se gradual. AT first
permanent National inheritance tax.
while It might he more substantial than
| any such tax has hitherto been, need not
approximate, either In amount or In the
what such tax should ultimately be:
This species Of tax has again and
! again been imposed. although only tenn
porarily. ny the National Government. II
was first imposed by the net of July g
1907. when the makers OF the Constitu-
ton we're aliTe ana at the head of af-
fairs. It was a graduated tax; though
small In amount the rate was increased
with the amount left to any individual
exception being made In the case OF GER
tain close kin. A similar tax was again
imposed by the act Of July |. 1859; a
minimum sum Of one thousand dollars
In personal property being excepted from
taxation, the tax then becoming pro
gressiye according TO the remoteness OF
kin. The war-revenue act OF June H.
| 1898. provided for an inheritance tax on
any sum exceeding the value Of ten
J lnpuSand dollars, lne Tdle OF tue. LaN III
creaslng both In accordance with the
amounts left and In accordance with the
leGatees remoteness Of kin. The Su-
preme Court has held that the success
Civil war was not a direct tax, but an
mpost or excise. which was both consti-
tutIonal and valid More recently the
court. In an opinion delivered by Mr. Jus
tice White, which contained an exceed
ngly able and elaborate discussion OF the
powers OF the Congress 10 impose death
duties. sustained the constitut!onality OF
the inheritance tax feature of the war
revenue act OF 1895
Income Tax Desirable.
In its incidents. and apart from the
main purpose Of raising revenue, an in
come tax stands on an entirely different
footing from an inheritance tax; because
II involves no question Of the perpetua-
tion OF fortunes swollen TO an unhealthy
size. The question is I'm It's essence a
S"sSS9n % OF the proper ADJ OF
stands IT Is undoubtedly difficult to de
wise n National income tax which shall
be constitutional But whether II is alb
solutely impossible is another question
and If possible II Is most certainly dcsir-
able. The first purely income-tax law
was passed by the Congress Of 1861, but
subject was that Of 1898. This the court
held TO be unconstitutional.
The question Is undoubtedly very in
tricate. delicate, and troublesome The
decision of the court was only reached
by one majority 1t is the law OF the
land, and OF course Is accepted as such
and Loyalty obeyed by all good citizens
Nevertheless, the hesitation evidently
felt by the court as d whole in coming
TO a conclusion. when considered together
with the previous decisions on the sub
ject. may perhaps indicate the possibility
OF devislng n constitutional income-tax
Law which shall substantially accomplish
the results aimed at. The difficulty OF
amending the Constitution is so great
that only real necessity can Justify a re-
sort thereto. Every effort should be
made in dealing with this subject as
with the subject OF the proper control
by the National Government over the
use oi corporate wealth I'm Interstate
business. to devise Legislation which with
out such action shall attain the desired
end. but If this fails. there VIII ulti-
rnutGly he no alternative IN n cnnStii,,