The Idaho Republican. [volume] (Blackfoot, Idaho) 1904-1932, 1906-12-07
INHERITANCE AND INCOME TAX.

INHERITANCE AND INCOME TAX.
Both Of These Are Recommended by
the President.
any country, but it is especially difficult in
ours with its federal system Of govern
ment. Some taxes should on every
ground be levied in a small district for
use in that district. Thus the taxation
Of real estate is peculiarly one for the
immediate locality in which the real es-
tate is found. Again, there Is no more
legitimate tax for any state than tax
on the franchises conferred by that state
upon street railroads and similar corpor-
ations 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 a in merely driving the cor
other, locality or other state. The ma
tional government should impose
graduated Inheritance tax, and. II pos
sible, q graduated income tax. The man
to the state, because he derives special
advantages from the mere existence of
government. Not only should he rec
ognize 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
share of the burden Of taxation; on the
other hand. it is quite as necessary that
in this kind of taxation, where the men
who vote the tax pay but little Of It,
there should be clear recognition OF the
danger of inaugurating any. such system
save In spirit of entire justice and mod
GRAFTON. Whenever we, as people, I'M
dertake 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 sup
porting the government more equitably
than at present; that we intend to treat
rich man and poor man on basis OF
absolute equality, and that we regard It
or permit injustice to the one as to do
or permit injustice to the other.
Subject Needs Careful Study.
am we'll aware that such 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
out the project in necessary detail. But
al legislators should enact law provid-
ing for graduated inheritance tax by
which a steadily increasing rate of duty
should be put upon all moneys or other
devise to any Individual or corporation.
1t may be well to make the tax heavy
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 certain point has been reached
1t is most desirable to encourage thrift
and ambition, and potent source OF
thrift and ambition is the desire on the
part of the breadwinner to leave his chill
dren we'll Off This object can be attained
by making the tax very small on moder-
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
1t is certainly Of no benefit to this coun-
try to perpetuate.
There can be no question Of the eth
ical propriety of the government thus de-
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.
1t is wise that progress in this direction
should be gradual. At first a permanent
national inheritance tax, while it might
be more substantial than any such tax
has hitherto been, need not approximate,
either in amount or in the extent of the
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 |
he not /
imposed by the act of July s, 1877, when
the makers of the Constitution were |
alive and at the head Of affairs 1t was |
q graduated tax; tho small IN amount,
left to any individual, exceptions being
made in the case of certain close kin. A |
similar tax was again imposed by the
act of July l, 1862; minimum sum OF
Il 900 in personal property being excepted
from taxation, the tax then becoming
according to the remoteness
Of kin. The war-revenue act or June IL,
1898, provided for an inheritance tax on
any sum exceeding the value OF $4,000,
The rate of tax increasing both In accord
ance with the amounts left and in &C
,ordance with the legatee's remoteness
If kin. The supreme court has held that
If the civil war was not direct tax but
IN impose of excise which was both con-
,titutional and valid. More recently the
,ourt, in an opinion delivered by Mr..
JuSIlC6 w Hllc, WHICH COutoihCu oil ga
,eedingly able and elaborate discussion
If the powers of the congress to impose
leath duties, sustained the constitution
llity of the inheritance tax feature Of the
act Of 1885,
Ii Income Tax COnstitutiOnaIs
In it's incidents, and apart from the
main purpose of raising revenue, an
ncome tax stands on an entirely differ
mt footing from an inheritance tax, be-
ause it involves no question of the per-
,etuation of fortunes swollen to an I'M
,ealthy size. The question Is In it's
ssence a question of the proper adjust
nent of burdens to benefits. AS the
aw now stands it is undoubtedly diff
ut to devise a national income tax
which shall be. constitutional. But
whether it is absolutely impossible is an
ertainiy desirable. The first purely in
ONE tax law was past by the congress
n 1861, but the most important law deal
ne with the subject was that of 1894.
his the court held to be unconstitu-
ional.
The question is undoubtedly very in
ricate, delicate, and troublesome. The
ecision of the court was only reached
" one majority. 1t is the law of the
and, and, Of course, is excepted as such
nd Loyalty obeyed by all good citizens.
the hesitation evidently
cit by the court as a whole in coming
0 conclusion, when considered to-
ether with the previous decisions on
he subject, may perhaps indicate the
disability of devising constitutional
law which shall substan-
tally accomplish the results, aimed
I'M. 20 ft1n fta