The Montgomery tribune. (Montgomery City, Mo.) 1892-1910, 1907-06-21
Inheritance Tax.

In my judgment, however, the In
heritance tax is both a far better meth
cd of taxation, and far more important
for the purpose l ave in view-the
purpose of ha wing the swollen ortune
of the country bear in proportion to
their size a constantly increasing bur-
den Of taxation. These fortunes exist
solely because of the protection given
the owners by the public. They are a
constant source of care and anxiety
to the public and 1t is eminently just
that they SHOULD be forced to pay heav-
lily for the protection given them. 1t
is. of course, elementary that the ma
ton has the absolute right to decide as
to the terms upon which any man
shall receive a beQuest or devise from
another. We have repeatedly placed
such laws on our own statute books.
and they have repeatedly been declared
constitutional by the courts. I believe
that the tax should contain the pro-
gressive principle. Whatever any in
d%ividual receives, whether by gift. be-
quest. or devise. in life or in death.
should. after a certain amount Is
reached, be increasingly b~urdened; and
the rate of taxation should be in
creased in proportion to the remote
ness of blood of the man receiving
from the man giving or devising. The
principle of this progressive taxation
of inheritance has not only been au-
thoriatively recognized by the legisla-
ton of congress-, but 1t Is now un-
equivocally adopted in the leading CIV
ilized nations of the world-in, for in
stance, Great Britain, France and Ger
many. 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
army have adopted the principle. In
Great Britain all estates worth SIS. 900
or less are practically exempt from
death duties. while the increase is
such that when an estate exceeds
SIS, 900, 900 in value and passes to a dis
tant kinsman or stranger in blood the
government receives nearly Is per
cent. In France, undey the progressive
system, so much of an inheritance as
exceeds SO, 900, 600 pays over 20 per
cent. to the state IL 1t passes to a dis
tant relative, n five per cent. IL II
passes to q direct heir. In Germany
very small inheritance are exempt, but
the tax Is so sharply progressive that
al inheritance not in agricultural or
forest lands which exceeds $3.50. 900
If 1T goes to distant relatives. Is
taxed at the rate of about 20 per cent
The German law is of special interest
because 1t makes the inheritance tas
an imperial measure, while allottine
to the individual states of the empire
a portion of the proceeds and permit.
ting them to impose taxes in additioy
to those imposed by the imperial gov.
eminent. In the United States the ma
tional government has more than once
imposed inheritance taxes in addition
to those imposed by the states. anc
in the last instance about one-half OF
the states levied such taxes concur.
rently with the national government
making a combined maximum rate. II
some cases as high as rs per cent.
and. as a matter Of fact, several Aatsi
adopted Inheritance tax laws for thu
first time while the national law wal
still in force and unrepealed. TIL,
French law has one feature which, Is Il
be heartily commended. The progress
sive principle is so applied that eacl
higher rate Is imposed only on the .ex
cess above the amount subject : Il
the next lower. rate. This plain I
peculiarly adapted to the working on
Of the theory of using thSssdnherit
ance tax for the purpose at sVrnitinl
the size of Unbeatable fortunes. sine
the progressive increase In the rates
according to this mode, may Tie, car
ried to its logical conclusion in x
maximum rate of nearly ,l0O pc
cent. for the amount In, .sssxcess .
a specified sum, without ''being cep
hscatory as to the rest Of ( b Inherit
ance; for each increase h. gate woui
apply only TO the amount above a car
tain maximum