Alma record. (Alma, Mich.) 1878-1928, 1907-12-04

ritories
Yet we must also remember that
even the wisest legislation on the sub
ject can only accomplish a certain
amount No legislation can 10y any
possibility guarantee the business com
munity against the results of specula
tive folly any more than II can guaran-
tee an Individual against the results of
bis extravngance. When an individual
mortgages his house to buy an auto
mobile he invites disaster. and when
wealthy men or men who pose as such
or are unscrupulously or foolishly eager
% become such indulge In reckless
speculation. especially II il Is accom-
panied by dishonesty they jeopardize
not only their own future. but the fu-
ture OF all their innocent fellow citi
zens, for they expose the whole bust
ness community TO panic ana distress
Cane Revise Tariff Nov.
This country IS definitely committed
70 the protective system. and any ef
Gori to uproot Il could not but cause
widespread industrial disaster m
other words. the principle Of the pres
ent tariff law could not with wisdom
be changed Eut I'm country of such
phenomenal growth as OUTS il Is prob
ably we'll that every dozen years or SO
the tariff laws should De carefully scrH
t.hiled so as i0 see thlt no excessive
or Improper benefits are conferred
tlereby. that proper revenue is pr0Nil
Ell and that our foreign trade is en-
outraged There must always be as
minimum a tariff which VIII uol only
allow for the collection of am ample
revenue. but which win at least make
good the difference 10 cost OF produc
ton here and abroad is. the DIR
ference IN the labor cost here and
abroad. for the well being Of the wage
worker must ever be a cardinal point
Of American policy. The question
should be approached purely from
business standpoint both the time ana
the manner of the change being such
as TO arouse the minimum of agitation
ana disturbance in the business world
and 70 give the least play for selfish
ana factioual motives The sole con
sideraiion should De 10 see that the
sum total Of changes represents the
public good This means that the sub
iect cannot with wisdom be dealt with
In the year preceding n presidential
election. because as a matter Of fact
experience has cOnclusively shown thai
at such a time Il is impossible 70 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 IN 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 ditfidently about
the income tax because one scheme for
an income tax was declared unconsti-
tutional by the supreme court while in
addition IL Is "a difficult tax TO admin
lister in its practical working. and great
care would have to be exercised TO see
that II was not evaded by the very
men whom il was most desirable To
have taxed. Nevertheless "a graduated
income tax of the proper type would
be desirable feature OF federal taxa
tlon, and Il is to be hoped that one
may be devised which the supreme
court will declare constitutional
The inheritance tax. however. is
a far better method OF taxation. The
government has the absolute right TO
decide as to the terms upon which a
man shall receive a bequest from an
other. and this point In the devolution
OF property Is especially appropriate
for the imposition of tax. Laws im-
posing such taxes have repeatedly been
placed upon the national statute books
and as repeatedly declared constitu-
tional by the courts. and these laws
contained the progressive principle
that Is, after certain amount Is reach
ed the bequest or gift In life or death
is increasingly burdened and the rate
OF taxation is Increased In proportion
to the remoteness or blood OF the man
receiving the bequest. These principles
are recognized already In the leading
civilized nations OF the world
Germanys inheritance Tax.
The German law Is especially inter
esting TO us because It makes The in
heritance tax an imperial measure
while alloting to the individual states
OF the empire a portion Of the pro
ceeds and permitting them TO impose
taxes in addition TO those Imposed by
the imperial government Small inner.
itances are exempt, but the tax is 80
sharply progressive that when the in
heritance is still not very large. pro.
vided II is not an agricultural or a for
est land, II is taxed at the rate of -
per cent II II goes TO distant relatives.
There is no reason why in the United
States the national government should
not impose inheritance taxes In addi-
ton to those imposed by the states.
and when we last had ap Inheritance
tax about one-half OF the states levied
such taxes concurrently with the ma
tional government making a combined
maximum rate In some cases as high
as % per cent.
To Tax Nonresidents Higher.
The tax should If possible be made
10 bear more heavily upon those resid-
Ing without the country than within IT,
A heavy progressive tax upon very
large fortune is In no way such tax
upon thrift or industry as n like tax
would be on a small fortune. No ad
vantage comes either to the country
as whole or to the individuals inner