Ottumwa tri-weekly courier. [volume] (Ottumwa, Iowa) 1903-1916, 1906-12-06
national government has long derived

national government has long derived
its chief revenue from tariff on i'm
ports and from an internal or excise
tax. In addition to these, there is ev-
cry reason why, when next our sys-
TEN of taxation is revised, the national
government should impose a graduated
inheritance tax and, If possible, grad
uated income tax. The man Of great
wealth owes peculiar obligation to
the state because he derives special
| advantages from the mere existence Of
government. Not only should he recog-
nize this obligation in the way he leads
his daily life and in the way he earns
and spends his money, but it should
also be recognized by the way in
| which he pays for the protection the
state gives him. On the one hand, 1T
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 in this kind of taxa
ton, where the men who vote the tax
pay but little of it. there should be
clear recognition of the danger of in
oss5 ttiy SQSll olClA SAVE III u
spirit of entire justice and moderation.
| Whenever we as a people undertake to
remodel our taxation system along the
lines suggested we must make it clear
| beyond peradventure that our aim is to
distribute the burden of supporting the
government more equitably than at
present, that we intend to treat rich
man and poor man on a basis of abso-
lutte equality and that we regard it as
equally fatal to true democracy to do
or permit injustice to the one as to do
or permit injustice to the other
l am well aware that such subject
as this needs long and careful study in
order that the people may become ia
| miliar with what is proposed to be
done, may clearly see the necessity of
proceeding with wisdom and self re-
straint and may make up their minds
just how far they are willing to go in
the matter, while only trained legis-
! lators can work out the project in
necessary detail. But feel that in the
near future our national legislators
should enact law providing for Il
graduated inheritance tax by which a
steadily increasing rate of duty should
be put upon all moneys or other val
uables coming by gift, bequest or de-
wise to any individual or corporation.
1t may be well to make the tax heavy
in proportion as the individual bene-
! flied 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 to any one
| individual after certain point has
been reached. 1t is most desirable to
encourage thrift and ambition, and a
potent source of thrift and ambition
is the desire on the part of the bread
winner to leave his children well off.
This object can be attained by making
the tax very small on moderate amounts
of property left, because the prime OBJ
ject should be to put constantly in
those swollen fortunes which it is GER
tainly of no benefit to this country to
perpetuate.
| Ethical Propriety Unquestioned.
/ 1AClC NttLA OC III luCStlOA VI lAS SlA-
zeal propriety of the government thus
determining the conditions upon which
any gift or Inheritance should be re-
ceiyed. Exactly how far the inher-
itance tax would, as an incident, have
the effect of limiting the transmission
by devise or gift of the enormous for
tunes in question it is not necessary at
present to discuss. 1t is wise that
progress in this direction should be
| gradual. At first a permanent ma
tiOnal Inheritance tax, willie it might
be more substantial than any such tax
has hitherto been, need not approx
mate, either in amount or In the ex-
tent 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 govern
ment. 1t was first imposed by the act
of July 6, 1897, when the makers of the
! constitution were alive and at the head
of affairs. 1t WAS graduated tax.
Though small in amount, the rate was
increased with the amount left to any
individual, exceptions being made in
! the case of certain close kin. A sim
liar tax was again imposed by the act
of July l., 1862, a minimum sum of
$1,000 in personal property being ex-
cepted from taxation, the tax then be-
coming progressive according to the
remoteness of kin. The war revenue
act of June 10, 1898, provided for an
| inheritance tax on any sum exceeding
the value of $4,000, the rate of the
tax increasing both in accordance with
| the amounts left and in accordance
| with the legatee'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 or excise which was both
constitutional and valid. More recent
ly the court, in an opinion delivered by
Mr.. Justice White, which contained an
exceedingly able and elaborate discus
sion of the powers of the congress to
impose death duties, sustained the
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