Iowa County democrat. [volume] (Mineral Point, Wis.) 1877-1938, 1907-12-05


no excessive or improper benefits are
conferred thereby, that proper reve-
nue. is provided, and that our foreign |
trade is encouraged. There must al
ways be as a minimum tariff which
will not only allow for the collection
of an ample revenue but which will
at least make good the difference III
cost Of production here and abroad;
that is, the difference in labor cost here
and abroad, for the weu1being OF the
Wage-Worker must ever be cardinal
point of American policy. The question
should be approached purely from
business standpoint; both the time
and the manner of the change being
such as to amuse the minimum Of agi-
tation and disturbance in the business
world, and to give the least play for
selfish and fractional motives. The
sole consideration should be to see
that the sum total of change repre-
sents the public good. This means that
the subject can not with wisdom be
dealt with in the year preceding a
presidential election, because as a
matter Of fact experience has conclu-
sively shown that at such a time it is
impossible to get men to treat it from
The wise time to deal with the mat
the standpoint of the public good.
ter is Immediately after such cleo
ton.
| income 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 fed
eral taxation. | speak diftidantly about
the income tax because one scheme
for an income tax was declared IN
constitutional by the supreme court;
while in addition it is a difficult tax
to administer IN it's practical working,
and great care would have to be exer-
c:sed to see thai it was not cyaded by
the very men whom it was most de-
sirabIe 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 heaV-
lilly upon the honest as compared with
the dishonest man. Nevertheless, a
graduated income 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 constitu
tional.
The inheritance tax, however, is
both far better method of taxation
, and far more important for the pur
= pose of having the fortunes of the
country bear in proportion to their in
crease in size a corresponding in
crease and burden of taxation. The
government has the absolute right tc
decide as to the terms upon which
man shall receive bequest or de
wise from another, and this
" LoinL in the devolutiCn of prep
erty Is especially appropriate for tbs
imposition of a tax. Laws imposing
such taxes have repeatedly been
placed upon the national statute books
ard as repeatedly declared constitI-
|
tanned the progressive principle, that
is, after a certain amount is reached
the beuuest or gift, in life or death
Is increasingly burdened and the rate
of taxation is increased in proportion
to the remoteness of blood of the man
: receiving the bequest. These principles
= are recognized already in the leading
: civilized nations of the world. In
Great Britain all the estates worth
l $4,000 or less are practically exempt
from death duties, while the increase
is such that when an estate exceeds
five millions of dollars in value and
passes to a distant kinsman OF
l stranger i'll blood the government re
ceives all told an amount equivalent
to nearly a fifth of the whole estate
as exceeds $10,000,000 pays over q
fifth to the state if it passes to a dis
: tant relative. The German law is es
! pecially interesting to US because il
makes the inheritance tax an imperia.
measure while allotting to the individ
Iual states Oh LQ6 empire pOI LlOL
of the proceeds and permitting them
to impose taxes in addition to those
imposed by the imperial government
| Small inheritances are exempt, but the
l tax is so sharply progressive thai
2 when the inheritance is still not very
+ large, provided it is not an agricul
i tural or a forest land, it is taxed a.
: the rate of 25 per cent if it goes tc
? distant relatives. There is no reason
l why in the United States the nationa
: government should not impose inherl
lance taxes in addition to those i'm
posed by the states, and when we last
had an inheritance tax about one hall
| of the states levied such taxes con
currently with the national govern
l ment, making a combined maximum
. rate, in some cases as high as rs pei
cent. The French law has one feat
ure which is to be commended. The
progressive principle IS so applied
that each higher rate is imposed only
, on the excess above the amount sub
tject to the next lower rate; so thai
each increase of rate will apply only
to a certain amount above a certain
maximum. The tax should il possible
be made to bear more heavily VI u