The Bottineau courant., 1906-12-07


business Of the country cannot be con.
that you give careful and early consider
alton to this subject. and If you find the
mission justified, that you amend the
law so as to obviate the evil disclosed.
INHERITANCE AND INCOME TAX.
Both of These Are Recommended by
the President.
The question of taxation is difficult in
any country. but it is especially difficult in
ours with its federal system of govern.
use in that district Thus the taxation
Of real estate is peculiarly one for the
tate is found. Again, there is no more
legitimate tax for any state than tax
on the franchises conferred by that state
ations which operate wholly within the
state boundaries, sometimes in one and
sometimes in several MUNICIPALITIES or or
there. are many kinds of taxes which can
only be levied by the. general government
so as to produce the best results. because
impose them in one particular state too
often results in merely driving the cor
poraton or individual affected to- t. some ma
graduated Inheritance tax, and, if pos
slble. graduated income tax me man
to the state. because he derives special
advantages from the mere existence of
government. Not only should he rec
his his d daily W life and din in the @ way he earns
and spends his money, but it should also
be recognized by the way in which he he
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, it is quite as necessary that
who vote the tax pay but little of it,
there should be clear recognition of the
save in a spirit of entire justice and mod
GRAFTON. Whenever we, as people, un-
dertake to remodel aur taxation system
along the lines suggested. we must make
aim is to distribute the burden OF sup
porting the government more equitably
rich man and poor man on basis, Of
absolute equality, and that we regard It
as equally fatal to true democracy to 90
or permit injustice to the one as to DO
or permit injustice to the other.
Subject Needs Careful Study.
I am we'll 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.
may clearly. see the necessity Of proceed,
may make up their minds just how far
they are willing to go. in the matter;
while only trained legislators, can work
feel that in the near future our nation
al legislators should enact law provid-
ing for a graduated inheritance tax by
should be put upon all moneys or other
devise to any Individual or corporation:
in proportion as the individual benefited
is remote of kin. In any event. in my
Judgment the pro rata of the tax should
of the amount left to any one individual
| after a certain point has been reached:
1t is most desirable to encourage thrift
hrft and ambon IS tSe desire on the
part of the breadwinner to leave his chill,
dren we'll off. This object can be attained
ate amounts of property left; because
| the prime object should be to put con-
| stantly increasing burden on the inner
| itance of those swollen fortunes which
try to perpetuate.
There can be no question Of the eth
termining the conditions upon which any
| gift or inheritance should be received.
| Exactly 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
| it is not necessary at present to discuss
| s.
should be gradual. At first a permanent
1 national Inheritance tax. while 1T might
| be more substantial than any such tax
has hitherto been need no not IN t6e
| increase by graduation, to what SUCH
| tax should ultimately be.
| Inheritance Tax Constitutional.
| This species of tax has again and again
| been imposed, altho only temporarily. by
pogsd gsqna py ns Se of dy It. rs
| the makers of the CONSTITUTION were
| alive and at the head of affairs. 1t was
| a graduated tax: tho small mall IN IN amount. amount,
| left to any individual. exceptions being
! made in the case of certain close kin. A
similar tax was oea again III imposed Dy the ne
| 81 900 in personal property being excepted
! from taxation. the tax then becoming
/ progressive according to the remoteness re Ioa IS
; 1898, provided for an Inheritance tax on
| any sum exceeding the value of $4,000,
| the rate of tax increasing both In accord
cordance with the legatee's remoteness
| of kin. The supreme court has held that
| the succession tax imposed at the time
| an impose of excise which was both con-
stitutioral and valid. More recently the
court, in an opinion delivered by Mr..
| ceedingly able and elaborate discussion
| of the powers of the congress to impose
death duties, sustained the constitution
ality of the inheritance tax feature CT the
war-revenue act of 1885,
Ii Income Tax Constitutional3
In it's 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 question of the proper adjust
ment of burdens to benefits. AS the
law now stands it is undoubtedly diff
cult to devise a national income tax
which shall be constitutional But
whether it is absolutely impossible is an
other question:; and If possible 1t 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. It 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
possib bility Of devising constitutional
~; bo11