Crittenden press. [volume] (Marion, Ky.) 1879-1907, 1906-12-06
INHERITANCE AND INCOME TAX.
Both Of These Are Recommended by
the President.

10th OF These Are Recommendeu by
the President
The question OF taxation is difficult in
any country, but II is especially difficult IN
ours with It's federal system Of govern
ment Some taxes should on every
ground be levied m a small district Tor
use IN that district Thus the taxation
eft rodl estate Is peculi irly one loi the
immediate locality In which The i"al '~-
tate - found Again, there Is no more
lcgitimate tax for any state than tax
ou the franchises conferred by tbtt state
upon street railroads and similar corpor-
atoms which operate wholly Within inc
state boundaries. sometimes in one anu
sometimes in several municipalities or
other minor divisions Of the state. BUT
there are many kinds OF taxes when can
only he levied by the general government
SO as to produce the best results, because
among other reasons, the attempt 10
often results in merely driving the cor
poraton or individual affected 70 some
other locality or other state me ma
uonal government should impose
graduated Inheritance tax. and. II pos
SIble. "a graduated income tax. The man
of great wealth owes peculiar ohllgauon
20 the state. because he derives. speclai
ADVANTAGES from the mere existence OF
government. Not only should he rec
oguize this obligation in the way he leaus
his daily life and in the way ne earns
and spends his money hut it should also
be recognized by the way In which ne
pays for the protection the state gives
MN. ON the one ndnu II - htSlI dol'
that he should assume his full and proper
share of the burden Of taxation, on the
other hand, IL is quite as necessary that
IN this kind Of haNution, whore the men
who vote the tax pay but little Of II,
there should be clear recognition OF inc
danger Of inaugurating any such system
save i'm spirit OF entire justice and mod
Grafton. Whenever We, as people, un-
dertake to remodel our taxation system
along the lines suggested. we must make
il clear beyond peradventure that our
rim - g.. LET ril "a 10 ID
porting the government more equitdhlN
than at present; that we intend To treat
rich man and poor man on hdsls, ot
absolute equality. and that we regard IL
as equally fatal to true democracy TO 10
or permit in Justice to the one as to do
or permit injustice to the other
subject Needs Careful study.
I am well aware that such a subject
as this needs long and careful study IN
order that the people may become tamil-
Jar with what is proposed to Ice done.
may clearly see the necessity OF proceed,
ing with wisdom and selt-restraint, dud
may make up their minds Just how TAR
they are willing TO go IN the matt-r,
while only trained legislators can Work
out the project i'm necessary detail tut
feel that i'm the near future our hauol,-
al legislators should enact a law proNid
ing for a graduate inheritance tax 10y
which steadily increasing rate OF duty
should be put upon all moneys or other
valuables coming by gift, bnQucSt, or
devise to any individual or corporation.
II may be we'll to make the tax heavy
in proportion as the individual ben'hteu
Judgment the pro rata Of the tax should
Increase very heavily with the increase
of the amount left TO any one lhdlVldual
after a certain point has been reached
1t is most desirable to encourage thrift
and ambition, and a potent source OF
thrift and ambition II the desire on the
part of the breadwinncr to leave his chll-
dren well on. This object can he attained
by making the tax very small on lnoder-
ate amounts OF property LETT; because
the prime object should be to put a con
stantly increasing burden on the inner
itancr of those swollen fortunes wihch
it is certainly OF no benefit 70 this coun-
try 10 perpetuate.
icaI prouriety Of the government thus de-
termining the conditions upon which any
gift or Inheritance should nc reserved,
would as an incident, have the enect OF
limiting the transmission by devise or
gift OF the enormous fortunes IN question
Il is not necessary AZ present IN DISCUSS
IL is wise that progress IN TINS dlrecuon
should he gradual AZ hr=t a pernhhent
national inheritance tax, while " Inltht
he more substantial than any such tax
has hitherto been, need not approximate.
either IN amount OF in tho extent or the
increase by graduation. 10 what such VI
tax should Ultimately pc
Inheritance Tax Constitutional.
This species Of tax has again and again
the national government, u was hrst
Imposed ny the act Of July 8. 1881. when
the makers Of the COnstituton were
alive and At the head OF anairS lt was
a graduated tax; tho small IN amount.
the rat. was increased with the amount
left to any mdividual EXCEPTIONS beng
made ia the case .nf certain 'lusr KIN, \
similar tax was again imposed 10y the
act Of .IIN !. 1852, minimum sum on
Il ,H1 in personal property hv!ng eAcepteI
from t1Nauon. M '"h , We . Ue'n MS.
of kin The war-reVsuuc act az June l3,
1895. pro, ldcd for an inheritance lax on
any sum exceeding inc yaIue n' NV,No'
the rate OF tax increasing bpth IN dctorh
lncc with the amouats lett and ir ac-
cordarcp with the legat-C's reWnteness
ar kin. The supreme court mas Ge'd that
the succession tax imposed at the ume
II the civil war was not direct tax oot
AN impose ~ excise which was both con"
stitutioma and valid More recently the
c.urt IN an opinion delivered Dy MI
Justice White which contained an rA-
,.crlingly able and elaborate discussion
of thc powers ot the congress 10 impose
death duties sustained the constitution
atty of the inheritance tax Feature or the
War-reNeuue act al lsN'
L. Income Tax COnstitutioAnIt
Ia It's Incidents and apart from the
main purpose of raising revenue, an
income tax stands on an euurel% amer
cause II involves no question OF the per
petuation of fortunes swollen 10 an I'M
healthy Size. The question rs IN It's
essence a question of the proper adjust
mrnt III burdens TO benefits. AS the
law now stands II II undoubtedly dlth-
cult 10 devise 4 national income tax
which shall be constitutional. But
whether IL is absolutely impossible IL an
other question: and II possible II H. most
certainly desirable. The fret purely IN
come tax law was past ny the congress
In 1861, hut the most important law deal
ing with the subject was that or 1891.
This the court held to be nmconstitu-
tiOnal. .,
rho question is undoubtedly very in
tricate delicate. and troublesome. The
decision of the court was only reached
nv one majority. II is the Law " the
land. and OF course. IN excepted as such
and Loyalty obeyed by all good citizens.
Nevertheless the hesitation evidently
felt by the court as whole IN coming
10 a conclusion, when considered to-
xether with the previous decisions on
The subject. may perhaps indicate the
possihiIity az devising constitutions
income tax law which shall substsn-
tally accomplish the reSults aimed
m The ditIiculty Of amending the con-
ytitutiou - 50 great that only real me-
cessity can Justify resort thereto.
Every effort should he mad" IN dealing
with this subject, o. with the subject
~ The prnper control by the national