The Sauk Centre herald., 1907-12-05


even the wisest legislation on the sub
ject can Cniy accomplish certain
amount. No legislation can by any
possibility guarantee the business COM
munity against the results of specula
tive folly any more than it can guaran-
tee an individual against the results of
his extravaganza. When an individual
mortgages his house to buy an auto
mobile he invites disaster. and when
wealthy men Or men who pose as such
or are unscrunulously or foolishly eager
to become such indulge in reckless
speculation. especially if it is accom-
panied by dishonesty. they jeopardiZe
not only their own future. but the fu-
ture of all their innocent fellow citi-
Zens. for they expose the whole busi-
ness community to panic and distress
Can't Revise Tariff Now
This country is definitely committed
to the protective system. and any eff
fort to uproot it could not but cause
widespread industrial disaster In
other words. the principle of the pres
ent tariff law could not with wisdom
be changed. But in country Of such
phenomenal growth as ours il is prob
ably we'll that every dozen years or so
the tariff laws should be carefully scru-
tinized so as to see that 10 excessive
or improper benefits are conferred
thereby. that proper revenue is provid
ed and that our foreign trade is en-
cOuraged There must always lie as a
minimum q tariff which will not only
allow for the collection of an ample
revenue. but which will at least make
good the difference in cost of prOduc-
ton here and abroad--that is. the diff
ference in the labor cost here and
abroad. for the well being of the wage
worker must ever be cardinal point
of American policy. The question
should he approached purely from q
business standpoint. both the time and
the manner of the change being such
as to arouse the minimum of agitation
and disturbance in the business world
and to give the least play for selfish
and factional motives. The sole con-
sideration should be to see that the
sum total of changes represents the
public good. This means that the sub
ject cannot with wisdom be dealt with
In the year preceding a presidential
election. because as matter of fact
experience has conclusively shown that
at such time it is impossible to get
men to treat it from the standpoint of
the public good. In my judgment the
wise time to deal with the matter is
Immediately after such election.
Income Tax and Inheritance Tax.
When our tax laws are revised the
question of an income tax and an in
heritance tax should receive the care
full attention OF our Legislators. In
my Judgment, both of these taxes
should be part of our system of fed
eral taxation l speak diffidently about
the income tax because one scheme for
an income tax was declared uncOnsti-
tuti0lal by the supreme court, while in
addition it is difficult tax to admin
lister in its practical working, and great
care would have to be exercised to see
that it was not evaded by the very
men whom it was most desirable to
have taxed. Nevertheless q graduated
income tax Of the proper type would
be desira BILE feature Of federal taxa
ton, and it is to be hoped that one
may be devised which the supreme
court will declare constitutional.
The Inheritance tax. however, is
a far better method Of taxation. The
government has the absolute right to
decide as to the terms upon which a
man shall receive bequest from an
other, and this point in the devolutiOn
Of property is especially appropriate
for the imposition of tax. Laws i'm
posing such taxes have repeatedly been
placed upon the national statute books
and as repeatedly declared constitu-
uonal by the courts, and these laws
contained the progressive principle
that is. after certain amount is reach
ed the bequest or gift in life or death
is increasingly burdened and the rate
Of taxation Is increased in proportion
to the remoteness of blood of the man
receiving the bequest. These principles
are recognized already In the leading
civilized nations Of the world
Germany's Inheritance Tax.
The German law is especially inter
esting to us because it makes the in
heritance tax an imperial measure
while allOting to the individual states
of the empire a portion of the pro
ceeds and permitting them to impose
taxes in addition to those imposed by
the imperial government. Small inher-
itances are exempt, but the fax is so
sharply progressive that when the in,
heritance is still not very large pro
vided 1t is not an agricultural or for
est land. it is taxed at the rate Of %
per cent if it goes to distant relatives
There is no reason why In the United
States the national government should
not impose Inheritance taxes in addi,
ton to those imposed by the states.
and when we last had an inheritance
tax about one-half of the states levied
such taxes concurrently with the ma
tional government, making a combined
maximum rate In some cases as higE
as 25 per cent
To Tax Nonresidents Higher.
The tax should If possible be made
to bear more heavily upon those resid-
ing without the country than within 1t.
A heavy progressive tax upon a very
large fortune is IN no way such a tax
upon thrift or industry as like tax
would be on a small fortune. No ad-
vantage comes either to the country