The Manitowoc pilot. [volume] (Manitowoc, Wis.) 1859-1932, 1906-06-28
INHERITANCE TAX
LAW SUSTAINED
SUPREME COURT DECIDES ACT AT
FECTING MANY ESTATES
CONSTITUTIONAL.
AD VAlOREM LAW is UPHELD.
Method of Taxation Of Railroads Is Valid,
but State Is Ruled Against In
Penalty Cases

Method OF Taxation OF Railroads is V ala,
but State Is Ruled Against in
Penalty Cases.
MADISON, Wis, June o. Special
The state supreme court, late yesterday
afternoon, handed down decisions declar-
ing the Inheritance tax law constitution
al, and also upheld the ad yalorem and
the civil seryice laws.
The decision in the railroad penalty
cases went against the state, the court
deciding that the state could not recover
any $4,000 penalties, claimed as for
FIXTURES against the railroads for filing
false and untrue reports OF gross earn
ings for purposes OF taxation under the
old license fee system.
Justice Wiuslow wrote the opinion in
the inheritance tax case.
The constitutionality of this law, and
Of any similar law, the court says, is
now attacked upon the following general
grounds:
That the right to take property by In.
hcritancc or by will is n natural right pro
tectcd by the constitution, which cannot
be wholly taken away or substantially i'm
paired by the Legislature.
That the constitution Of this state limits
the power of taxation to property only, and
that this tax is an excise levied upon right
or privilege and hence unconstitutional.
That even If the Legislature has power
under the constitution, to levy such a tax,
this law violates the constitutional require
mrnt that the rule Of taxation shall be uni
form.
Text of Decision
The opinion in part is as follows:
with the first Of these propositions we
agree. We ar" fully aware that the con
trary proposition has been stated by the
great majority Of the courts Of this Couu-
try, including the supreme court Of the
United States The unanImity with which
It is stated IS perhaps only cqualed by the
UIuCity OF reasoning by which 1t Is support
cd. In its simplest form 1t is thus stated
"Ihc right 10 take property by devise or
descent Is the creature Of the law and not
a natural right"
The faIIocy Of the idea that the govern
mcnt creates or wthhods property rights
at will is very APPARENT That there are
Inherent rights existing In the people prior
to tn" making Of any of our constitutions
is a fact recognized. So we arrive at the
conclusion that the general principle OF
Inheritance taxation may be justified under
the power Of reasonable regulation and tax
alton Of transfers Of property.
Tax Law Scope.
The second contention Is that taxes can
only be levied on property. SO we meet
the question whether any taxes other than
taxes upon property can be constitutionally
levied IN Wisconsin. There are no express
words In tho constitution limiting taxation
to property taxation.
Consideration Of the third point brings
us TO the third point Of the argument, aud
I'm fact partly answers it, namely, the OBJ
lection that the tax here In question VIC
lates the rule OF uniformity. in view OF
our construction Of section / OF article 3,
of our constitution, by which we hold that
It applies simply to property taxation, the
question seems to be free from reasonable
doubt.
The progressive feature Of the act involves
greater difficulty, by this feature Increased
rates Of taxation are imposed rs the amount
of the bequcst increases. 1t is said that
this Is rank discrimination, that there Is
no difference in situation justifying diff
ference In classification, and that classified
ton OF persons cannot be based on mere
differences in ability to pay. 1t IL some.
what persuasive to note that railroad "
censc taxes have been levied Unon the pro
fressiye plan, Increasing as ne earnings
per mile Increase since 1876. without ques
ton, and that street railroads and electric
lighting companies are now subject to
Ike progressive rate OF taxation.
We nrc content to follow the decisions OF
the United States supreme court and hold
that the progressive feature does not yo-
late the constitution.
Therefore, the demurrer Is sustained ana
judgment Diminishing the complaint ordered.
OF Great Importance.
The case of Nunncmacher, as trustee
against the state of Wisconsin involved
the validity Of chapter IA, laws of 1908,
which provides for a tax on the transfer
of real and personal property under the
interstate laws Of this state when any
person dies possessed of property while
n resident of this state. Since the enact
meut of this law there has been paid
into the state treasury sums Of money