Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1907-12-03

Ject cannot WIN wisdom be dealt with
In the year preceding a presidential
election, because, as 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. l speak diffldently about the in
come tax because one scheme for an in
come tax was declared unconstitution-
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 1t was not evaded by the very
men whom it was most desirable to
have taxed, for if 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 a graduated in
come tax of the proper type would be
a 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
hnvVrnNrnr &c hot 70 hot
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 n cor
responding increase and burden of tax
alton. The government has the abso-
lutte right to decide as to the terms
upon which q man shall receive be-
quest or devise from another. and this
point in the devOlution of property is
especially appropriate for the imposi-
ton of n 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
certain amGcnt is reached the be
quest or gift, in life 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 5000 or
less are practically exempt from death
duties, while the increase is such that
when an estate exceeds 100000 IN
value and passes to a distant kinsman
or stranger in blood the government
receives all told an amount equivalent
to nearly a fifth of the whole estate
In France so much of an Inheritance
as exceeds S10,O00000 pays over a
fifth to the state If it passes to 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 Il 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 1t is not an agri
cultural or 4 forest land, it is taxed at
the rate of % 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
4,
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 % per cent. The French
law has one feature which is to be
heartily commended. The progressive
principle is SO applied that each high
er rate Is imposed only on the excess
above the amount subject to the next
lower rate, so that each increase of
rate will apply only to Il 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
a 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
such a tax, and as an incident to it:
function of revenue raising such tai
would help to preserve measurable
equality of opportunity for the people
of the generations growing to man
hood. We have not the slightest sym
patty with that socialistic idea which
would try to put laziness, thriftlecs
ness and inefficiency on par with in
dustry, thrift and efficiency, which
would strive to break up not merel!
private property, but, what is far mor
important. the home, the chief pro-
upon which our whole civilization
stands. Such theory, If ever adopt
ed, would mean the ruin of the entir
co1ntrv-a rI1in which wOuld hpo