New-York tribune., 1906-12-05

for the protection the state gives him. On the
ono hand it is desirable that he shoula - Sssu,e sum.
his full and proper share of the burden or AKA
ton; the other hand. it is quite as necessaI.
that in this kind Of taxation, where .ie Ii ,a
VINO vote the tax pay out li.ss Q. ~ ~ inaugural
ing any such system save i'm splIi' @ vi ~ ns n
justice and moderation. WheneVer, ,io,, Me, pster I
people undertake to remodel our taxalo sS Sste' ia
along the lines suggested. we must MAKE II cl.S
beyond peradventure that our ann 10 .o oSeii
butte the burden OF supporting the goVefninehs.
more eouitahly than at present; that we fntena
10 treat rich and poor man on q 49, y.
absolute equality and that we 70 door permit
injustice to the to do or permit in1us'ee
to the other. ,,,e
needs long and careful study in order that th'
people may become familiar with What Is pi.
posed to be done may clearly sse it at raS,roint
of proceeding with wisdom and seH-re ram. am
and may make up their minds just now lar tiiSS
are willing go in the matter; wnlle ohiy
trained legislators can work out the proJect IN
necessary detail But feel that in the near nut
TIRE national legislators should enact q law
providing for graduated inheritance TAX ny
which steadily increasing rate OF duty shoolo
be put upon all moneys other valuables cont
ing ny gift. Request devise TO any individual
or corporation - may be Wen TO ma sHe .he taS
heavy In proportion as the individual benehted
IS remote of kin In any event III my Judgment
the pro rata OF the tax should Increase very
heavily with the increase OF the amount left TO
any one individual after certain point has been
reached 1t is most desirable to encourage
thrift and ambition, and potent source OF
the hreadwinner TO leave his children we'll off
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 tho icheri-
tance of those swollen fortunes viii III it is GER
tainly OF no benefit to this country to perpet-
uate
There can be no question of the ethical pro-
priety of the government thus determining the
conditions upon which any gift or inheritance
should be received Exactly how far the in
herftance tax would incident. have the
effect of limiting the transmission by devise or
gl1t OF the enormous fortunes in question 1t Is
not necessary at present to discuss. 1t is wise
that progress in this direction should be gradual
AT first a permanent national Inheritance tax
whle II might be more substantial than any
such tax has hitherto been need not approxi-
mate 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 ma
tional government 1t first imposed by the
act of July g. 1897, when the makers of the Cor
sututlon were alive and at the head Of affairs
1t was graduated tax: though small IN amount
the rate increased with the amount left to
any individual. exceptions being made In the
case of certain close kin similar tax was
again imposed by the act of July l. 1862 a
minimum: sum of $1,000 in personal property
being excepted from taxation the tax then be-
coming progressive prog according to the remoteness mess
OF kin. The war revenue act of June 13 1898,
provided for an inheritance tax on any sum ex-
ceeding the value of $4,000. the rate of the
tax increasing both in accordance with the
amounts left and in accordance with t6e
iegatee's remoteness of kin. The Supreme Court
has held that the succession tax imposed at the
time of the Civil War was not direct tax, but
an impost excise, which boil, constitu-
tional and valid More recently the court, in
an opinion delivered by Mr.. Justice White,
which contained exceedingly able and elab-
crate discussion OF the powers of the Congress
TO impose death duties, sustained the constitu-
uonality of the inheritance tax feature of the
war revenue act of 1898.
In its incidents, and apart from the main pUr
pose of raising revenue an income tax stands
OY N ron a N IT,
ance tax because it involves no question of the
perpetuation of fortunes swollen to IN
healthy size The question is in its essence
question of the proper adjustment Of burdens
TO benefits. AS the Law stands 1t is
doubtedly difficult to devise national income
tax which shall be constitutional But whether
it is absolutely impossible is another question;
and if possible 1t is most certainly desirable
The first purely income tax law passed by
the Congress in 1861 but the most important
law dealing with the subject was that of 1894.
This the court held to be unconstitutional.
The question is undoubtedly verf intricate.
delicate and troublesome The decision. of the
court only reached by one majority. 1t is
the law OF the land and or course Is accepted as
such and loyalty obeyed by all good citizens
Nevertheless, the hesitation evidently felt by
the court a whole in coming to a conclusion,
when considered together with the previous de-
csions on the subject may perhaps indicate the
possibility of devising constitutional income
tax law which shall substantially accomplish the
results aimed at The difficulty of amending
the Constitution is great that only real neces-
sty justify resort thereto. Every effort
with the subject of the proper control by the
national government over the use of corporate
wealth in interstate business, to devise legisia-
ton which without such action shall attain the
desired end; but If this fails there Will ulti-
mately be alternative to constitutional
amendment.
1t would he impossible to overstate Though
it is, of course, difficult quantitatively to meas
ure) the effect upon nations growth to great
of what may he called
Technical and In organized patriotism, which
dustra TRAINING. necessarily includes the sub
stitution of a national feel
ing for local pride. with as resultant
a high ambition for the whole country. No
country develop its full strength so long as
the parts which make up the whole each put a
of loyalty to the whols This is true of sections
and it is just true of classes The industrial
and agricultural classes must work tosethef'
CAPITALISTS and wageworkerS must work to-
gether. If the best work of which the country Is
capable is to he done 1t Is probable tnat a
thoroughly efficient system Of education comes
next the influence of patriotism in bringing
about national success of this kind
Our federal form OF government, so fruitful of
advantage TO people in certain ways, in
other ways undoubtedly limits our ma tional ef-
rectiveness It is not possible, for instance for
the national government to take the lead in
technical industrial education. to see that the
public school system of this country develops on
all lis technical industrial, scientific and COM
mercial sides. This must be left primarily to
the several states Nevertheless. the national
government has control of the schools Of the
District OF Columbia. and it should see that
these schools promote and encourage the fullest
dev veloprent OF the scholars in both commercial
and industrial training The commercial train
ing should in ono of its branches deal with for
eign trade. The industrial training is even
more importan-. 1t should be OF our prime
objects nation. far as feasible, constantly
to work toward putting the mechanic. the wage
worker who works with his hands, on higher
plane of efficiency and reward. to increase
his effectiveness in the economic world and the
dignity. the remuneration and the power of his
position in the social world Unfortunately. at
no OF I'm no