Gilpin observer., 1907-06-13

public lands question lies with the
homemaker, with the settler who lives
ON his land and that the government
control of the mineral fuels and the
public grazing lands is necessary and
inevitable. Each of these conclusions
represented a movement of vast i'm
pOrtance which would confer large
benefits upon the nation, but which
stood by itself. They are connected
together into one great fundamental
problem-that of the conservation of
all our natural resources. Upon the
wise solution of this, much of our fu-
ture obviously depends.
Even such questions as the regula-
tiOn of railway rates and the control
of corporations are in reality subsidi-
ary to the primal problem of the
preservation in the interests of the
whole people of the resources that ma
ture has given us. If we fail to solve
this problem, no skill in solving the
others will in the end avail US very
greatly.
Now as to the matter of taxation.
Most great civilized countries have an
income tax and an inheritance tax.
In my judgment both should be a part
of our system of federal taxation. l
speak diffidentaly about the income
tax because one scheme for an income
tax was declared unconstitutional by
the Supreme Court by five to four
vote; and in addition it is difficult to
tax to administer in its practical work
:ngs, and great care would have to be
exercised to see that it was not evaded
by the very man whom it is most de-
sirable to have taxed, for if SO evaded
it would of course be worse than no
tax at all, as the least desira' lie of all
taxes is the tax which bears heavily
upon The honest as compared with the
dishonest man. Nevertheless, a grad
uated income tax of the proper type
would be a desirable permanent fea-
lure of federal taxation, and l still
hope that one may be devised which
the Supreme Court will declare con-
stitutional.
"In my judgment. however, the in
heritance tax is both a far better
method of taxation, and far more i'm
portant for the purpose have in view
the purpose of having the swollen
fortunes of the country bear in proper
tion to their size a constantly increas-
ing burden of taxation. These for
tunes exist solely because of the pro
lection given the owners by the public.
They are constant source of care and
anxiety to the public and it is emf
nently just that they should be forced
to pay heavily for the protection given
them. lit is, of course, elementary
that the nation has the absolute right
to decide as to the terms upon which
any man shall bequest or devise from
another. We have repeatedly placed
such laws on our own statute books.
and they have been repeatedly been
declared constitutional by the courts.
| believe that the tax should contain
the progressive principle.
whatever any individual receives,
whether by gift, bequest or devise. in
life or death, should, after a certain
amount is reached. be increasingly
burdened. and the rate of taxation
should be increased in proportion to
the remoteness of blood of the man
receiving or devising.
The principle of this progressive
taxation of inheritances has not only
been anthoritatively recognized by the
legislation of Congress. but it is now
unequivocally adopted in the leading
civilized nations of the world-in, for
instance, Great Britain, France and
Germany. Switzerland led off with the
imposition of high progressive rates.
Great Britain was the first of the great
nations to follow suit, and within the
last few years both France and Ger.
many have adopted the principle. In
Great Britain all estates worth $4,000
or less are practically exempt from
death duties, while the increase is
such that when an estate exceeds So.
100000 in value and passes to a dis
tant kinsman or stranger in blood the
government receives nearly eighteen
per cent. In France, under the pro
gressive system, SO much of an inheri.
tance as exceeds $10,000,000 pays over
twenty per cent. to the state if it
passes to distant relative. and five
per cent. If it passes to direct heir.
In Germany very small inheritances
are exempt. but the tax is so sharply
progressive that an inheritance not in
agricultural or forest lands which ex.
ceeds $250000, if it goes to distant rel.
atives. is taxed at the rate of about
twenty-five per cent. The German law
is of special interest, because it makes
the inheritance tax an imperial meas
ure. while allotting to the individual
states of the empire a portion of the
proceeds and permitting them to i'm
pose taxes in addition to those imposed
by the imperial government.
Inheritance Tax Law.
In the United States the national
government has more than once i'm
posed Inheritance taxes in addition to
those imposed by the states. and in
the last instance about one-half of the
states levied such taxes concurrently
with the national government, making
a combined maximum rate, in some
cases as high as twenty-five per cent,
and, as a matter of fact, several states
adopted Inheritance tax laws for the
first time while the national law was
still in force and unrepealed. The
French law has one feature which is