The Bemidji daily pioneer. [volume] (Bemidji, Minn.) 1904-1971, 1907-12-03

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 a matter Of fact
experience has conclusively shown
that at such a 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 federal taxa
ton. | speak diilidently about the in
! come tax because one scheme for an in
! come tax was declared demonstrations
! al by the supreme court, while in addi-
ton it is difficult tax to administer
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. for il so evaded it would
! Of course be worse than no tax at all,
as the least desirable of all taxes is
the tax which bears heavily upon the
| honest as compared with the dishonest
man. Nevertheless graduated in
| come tax of the proper type would be
desirable feature Of federal taxation,
and it is to be hoped that one may be
devised which the supreme court will
! declare constitutional. The Inheritance
tax, however is both a far better
method of taxation and far more i'm
portant for the purpose of having the
! fortunes Of the country bear in pro-
portion to their increase in size a cor
responding increase and burden Of tax
alton. The government has the abSO-
lutte right to decide as to the terms
! upon which 4 man shall receive q be-
quest Or devise from another, and this
point in the devOlution of property is
especially appropriate for the imposi-
ton of tax. Laws imposing such
taxes have repeatedly been placed
upon the national statute books and as
repeatedly declared constitutional by
| the courts, and these laws contained
the progressive principle-that is. after
a certain amount is reached the be-
quest or gift, in lie Or death, is in
creasingly burdened and the rate Of
taxation is increased in proportion to
the remOteneSs Of blood of the man re-
ceiving the bequest. These principles
are recognized already in the leading
civilized nations Of the world. In Great
Britain all the estates worth $1,000 or
less are practically exempt from death
duties, While the increase is such that
when an estate exceeds $5,000,O0O in
value and passes to distant kinsman
or stranger in blood the government
receives all told an amount equivalent
to nearly fifth Of the whole estate.
In France 50 much of an Inheritance
as exceeds $1OOOO,O0O pays over a
! fifth to the state if it passes to a dis
tant relative The German law is es-
pecially interesting to us because it
makes the Inheritance tax an impe-
rial measure, While allotting to the
individual states of the empire q pOr-
ton of the proceeds and permitting
them to impose taxes in addition to
those imposed by the imperial govern
ment. Small inheritances are exempt,
but the tax IS so sharply progressive
that when the inheritance is still not
very large, provided it is not an agri-
cultural or a forest land, it is taxed at
the rate of 25 per cent if it goes to dis
tant relatives.
There is no reason why in the Unit
ed States the national government
should not impose Inheritance taxes in
addition to those imposed by the
states, and when we last had an inner
itance tax about One-half of the states
levied such taxes concurrently with
the national government, making Il
combined maximum rate In some cases
as high as 25 per cent. The Frencl,
law has one feature which is to be
heartily commended. The progressive
principle is so applied that each high
er rate Is imposed only Oh the excess
above the amount subject to the next
lower rate. so that each increase of
rate will apply only to certain
amount above a certain maximum.
The tax should if possible be made to
bear more heavily upon those residing
without the country than within it. A
heavy progressive tax upon a very
large fortune is in no way such tax
upon thrift or industry as a like tax
would be on a small fortune No adj
vantage comes either to the country as
whole or to the individuals inheriting
the money by permitting the transmits
sion in their entirety Of the enormous
fortunes which would be affected by