Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1906-12-05

DECEMBER 8, 1906.
uatcd inheritance tax. and. II possible,
wealth owes q peculiar obligation to the
state, because he derives special advantages
Not only should be recognize this obliga,
ton I'm 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
I'm which he pays for the protection the
state gives him. On the one hand, II Is de-
sirable that he should assume his full ana
proper share Of the burden Of taxation; on
the other hand. IL Is quite as necessary
that In this kind Of taxation, where the
men who vote the tax pay little OF II, there
should be clear recognition of the danger
OF inaugurating any such system save IN
spirit Of entire Justice and moderation
Wherever we, as a people, undertake 70
remodel our taxation system along the lines
suggested, we must make II clear beyond
peradvent that our aim is to distribute
the burden Of supporting the government
more eQuitably than at presents that we
intend to treat rich man and poor man on
regard it as equally fatal 10 true democ-
racy to do OF permit injustice TO- the one
as to do or permit injustice to the other'
Needs Careful study.
/ am well aware that such subject as
this needs long and careful study IN order
that the people may become familiar win
what is proposed to be done, may eieaIg
dom 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 national legislators should
enact a law providing for graduated m
heritance tax by which a steadily increas-
ing rate OF duty should be put upon gu
moneys or other .valuables coming by glIt'
or devise, to any individual or corporation
II may be well TO make the tax heavy IN
proportion as the individual benefited Is
remote of kin. In any event, in my tudg-
mput the rata of the should IN
crease very heavily with the increase of the
amount left to any one indivldual aitel
most desirable to encourage thrift and ans
bition, and a potent source Of THRIFT ana
ambition is the desire on the part 81 t6e
breadwinner to leave his children wei on
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 swollen
fortunes which It is certainly Of no beneht
to this country TO perpetuate.
Right of the Government.
There can be no question OF the ethical
propriety of the government thus determin-
ing the conditions upon which any gitt or
how far the inheritance tax would, as
an Incident have the effect 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 a permanent national
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 temporarily,
by the national government. 1t was first
imposed by the act of July g, 1897, when the
makers Of the constitution were alive and
at the head of affairs. 1t was a graduated
FAX; though small in amount, the rate
was Increased with the amount left to any
individual, exceptions being made In the
was again imposed by the act of July l,
1862; minimum sum Of $1,000 In personal
property being excepted from taxation, the
tax then becoming progressive according
to the remOteness Of kin. The war revenue
act Of June 70, 1898, provided for an in
heritance tax on any sum exceeding the
value of $1,000 the rate of the tax in
Creasing both in accordance with the
amounts left and in accordance with the
legatees's remotCness Of kin. The supreme
court has held that the succession tax i'm
posed at the time OF the civil war was not
direct tax, but an impost or excise, which
was both constitutional and valid. More
recently the court, in opinion delivered
by Mr.. Justice White, which contained an
OF the powers of the congress to impose
death duties. sustained the constitutionality
of the inheritance tax feature of the war
! revenue act of 1895.
Income Tax Aspects.
In its Incidents and apart from the main
purpose of raising revenue, an income tax
stands on an entirely different footing from
an inheritance tax; because II involves no
question Of the perpetuation OF fortunes
swollen to an unhealthy size. The guess
ton is in its essence a question of the
proper adjustment Of burdens to benefits.
As the law now stands II Is Undoubtedly
difficult to devise a national income tax
which shall be constitutional. But whether
IL Is absolutely impossible is another ques-
ton; and II possible II is most certainly
desirable. The first purely income tax law
was passed by the congress In 1851 but tine
most important law dealing with the sub
ject was that Of 1894 This the court held
10 be unconstitutional.
The question Is undoubtedly very in
tricate, delcAteaand troublesome. The de-.
cision of the court was only reached by
one majority. 1t is the law of the land.
and of course Is accepted as such and 10y
ally obeyed by all good citizens Never.
theless. the hesitation evidently felt by the
court as whole in coming TO a conclu-
sion. when considered together with the
previous decisions on the subject, may per-
haps indicate the possibility of devising
| a constitutional income tax law which shall
substantially accomplish the results aimed
at. The difficulty Of amending the constl-
tuition Is so great that only real necessity.
can Justify resort thereto. Every effort
should he made in dealing with this sub,
jeCt, as with the subject Of the proper con-.
troll by the national government over the
use of corporate wealth in interstate busi-'
such action shall attain the desired end;
no alternative to a constitutional amend
ma