The Washington herald., 1907-06-11

nYe to four vote and in aduluoh' IL II /
difficult tax to administer In its practical |
workings. and great care would have TO
be exercised TO see that it was not eYaded
by the very man whom It is most desir-
able to have taxed. for If so evaded II /
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. a graduated income
tax Of the proper type would be a desra-
bic permanent feature Of Federal taxa
ton. and | still hope that one may be de-
yised which the Supreme Court VIII de-
clare constitutional
TN my judgment. howeve., the inner
itance tax Is both far better method OF
taxation, and far more important for the
purpose | have in view-the purpose OF
having the swollen fortunes of the coun-
/ try bear in proportion to their size q cSn-
stantly increasing burden OF taxation.
These fortunes exist solely because Of the
protection given the owners by the public.
They are a constant source Of cate and
anxiety TO the public and t IS cminentlY
just that they should hc forced To pay
heavily for the protection given them. IL
is, of course. elementary that the nation
has the absolute right to decide ms 20 the
terms upon which any man shall receive
I bequest or devise from another. We have
repeatedly placed such laws on our own
statute books. ana they have repeatedly
/ been declared constitutional by the courts
Progressive Tax Best.
/ Il believe that the tax should contain
I the progressive principle Whatever any
/ individual receives, whether by gift be-
quest or devise. IN lie OF IN death, should
/ after n certain amount is reached, be i'm
/ creasingly burdened. and the rate Of tax
alton should be Increased In proportion
/ 90 the remotcncss Of blood OF the man
receiving from the man giving or devils
/ ing The principle Of this progressive tax
alton ~ inheritance has not only been
/ iauthoritatiycly recognized by the legisla-
/ tion Of Congress. but 1t Is now uneqgiyo-
c5lly adopted In the leading civilized
nations of the world-in FOR instance
Great Britain. France, and Germany.
/ Switzerland Ted on with the imposition Of
/ high progressive rates. Great Britain was
/ the first Of the great nations 20 follow
suit. and within the last few years both
/ France and Germany have adopted the
principle. In Great Britain an estates
worth 5000 or less are practically exempt
/ from death duties. while the increase is
/ such that when an estate exceeds &,G1g1
l IN value. and passes q "a distant kins-
/ man or stranger ln blood, the government
/ receives nearly Is per cent In France.
under the progressive system. SO much of
! an inheritance as exceeds $loW009 PAYS
over % per cent % the state II IT passes
I 90 a distant relative and . per cent 81
/ 10 passes 60 q direct heir. Tn Germany
. very small iuheritanCcs are exempt bu-
the tax Is so sharply progressive that an
+ inheritance not I'm agricultural or forest
lands which exceeds $1,000 if % goes 90
distant relatives, Is taxed az the rate 0i
about . per cent
/ The German law is Of special interest.
/ because It makes the inheritance tax an
/ imperial measure. while allotting 90 the
. individual states of the empire "a portion
. ~ the proceeds and permitting them %
. impose taxes tn addition 90 those imposed
hv the imper I government In the
/ United States the national government
. has more than once imposed inheritance
. taxes IN addition ~ those imposed hy the
. States. and i'm the last instance about
/ one-h4lf of the States levied such taxes
/ concurrently with the national govern
mcnt making combined maximum rate.
/ fu some cases. as high as ~ per cent,
/ and. as @ matter Of fact. several States
! adopted inheritance tax laws l0r the first
I time while the national law was sflu -
/ force and unrepe1led. The French law
has one feature which is - u@ heartily
/ commended.
WouId Limit Sire of Fortunes.
"Thc progressive principle Is so applied
that each higher rate Is imposed only on
/ the excess above the amount subject %
the nest lower rate. This plan is pc
cuH8rly adapted 20 the working oGt of
the theory Of using the inheritance tax
for the purpose of limiting Che size ~ IN
hor.tahla fortunes. since the progressive
increase IN the rates. accCrilnC % this
mode. may be carried 20 ts logical con
clus.o0 in a maximum rate Of nearly 100
per cent for the amount in excess OF a
specified sum. without being confscatory
as % the rest OF the liheritance, for each
+ increase i'm rate would apply only 10 the
amount above n certain maximum.
Il DO not believe that any advantage
comes either 10 the country MS whole or
GO tho individuals inheritlng the money
by permitting the transmission in their
entirety of such enormous fortunes as
have been accumulated I'm America. The
tax could De made 20 bear more heavily
upon persons residing out OF the country
than upon those residing within 10. Such
/ a heavy progressive tax is. of course, I'm
no shape or way a tax ON thrift - tu-
dus.Ty. for thrift and industry would have
ceased 10 possess any measurable inn
port8uce In the acquisition Of the swollen
fortunes Of which I speak long before
the tax would in any way seriously af-
feet them. Such tax would be one OF
the methods by which we should try %
preserve a measurable equality of Oppor-
tUuitv for the people Of the generation
growing to manhood As Lincoln pointed
out. there are some respects In which
men are obviously not equal; bat there
is mo- reason why there should not be an
, equality os self-respeCt and of mutual re-
sUcct. an equality of rights before the
law. and at least an approximate equality
in the conditions under which each man
, obtains the chance to show the stuff that
is in him when compared with his fell
lows