Rock Island Argus., 1906-12-04
INCOME TAX DISCUSSED.
Both This and Inheritance Tax Strongly
Advocated.

|
Advocated.
The question of taxation is difficult
in any country, but it is especially diff
ficult in ours with its federal system Of
government. Some taxes should on ev-
cry ground be levied in small dis
trict for use in that district. Thus the
taxation of real estate is peculiarly
one for the immediate locality in which
the real estate is found. Again, there
is no more legitimate tax for any state
than Il tax on the franchises conferred
| by that state upon street railroads and
| similar corporations which operate
wholly within the state boundaries,
| sometimes in one and sometimes in
| several municipalities or other minor
divisions of the state. But there are
| many kinds of taxes which can only
be levied by the general government so
| as to produce the best results. because,
| among other reasons. the attempt TO
| impose them in one particular state too
often results merely in driving the
corporation or individual affected to
some other locality or other state. The
national government has long derived
! its chief revenue from a 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. Il grad
uated income tax. The man of great
! wealth owes Il 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 theSProtection the
state gives 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 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
augurating any such system save in
spirit of entire justice and moderation.
Whenever we as people undertake to
remodel our taxation system along the
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 basis of abso-
r1ute 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.
I 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 Il law providing for a
graduated inheritance tax 10y 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
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 a certain point has |
been reached. 1t is most desirable to |
encourage thrift and ambition, and a !
potent source of thrift and ambition I
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 a constantly in !
creasing burden on the inheritance of !
those swollen fortunes which it is GER !
tainly of no benefit to this country to /
perpetuate.
Ethical Propriety Unquestioned.
There can be no question of the eth |
ical propriety of the government thus !
determining the conditions upon which !
any gift or Inheritance should be re-
ccived. 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 il 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, while it might
be more substantial than any such tax
has hitherto been. need not approxi-
mate, either in amount or in the ex
tent of the increase by graduation. to
what such a tax should ultimately be.
This species of tax has again and
again been imposed, although only
temporarily, by the national cavern