Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1907-06-14

vast natural resources of the water
ways Of the United States. Clearly 1t
Is impossible for the waterways COM
mission to accomplish its great task
without considering the relation Of
streams to the conservation and use OF
all other natural resources.
AS illustrative Of the importance
which he attaches to this subject the
president declared that even such ques-
tions as the regulation of railway rates
and the control Of corporations are In
reality subsidiary to the primal prob
lem Of the preservation in the interests
Of the whole people Of the resources
that nature has given us. II we fall
to solve this problem no skill in solving
the others will in the end avail US very
greatly.
An Inheritance Tax.
Taking up the matter Of taxation,
Mr.. Roosevelt stated that most great,
civilized countries have an income tax
and an inheritance tax and declared
that, in his judgment, both should be
part Of our system Of Federal taxation.
AS to the first he spoke briefly and diff
fidently, in view of the decision Of the
supreme court declaring unconstitu-
tional one such scheme Of taxation,
and because of its difficulties in the
way Of administration. AS to the lat
ter he declared that 1t would serve the
purpose of having the swollen for
tunes Of the country bear in propor-
ton to their size constantly increas-
ing burden Of taxation.
These fortunes" he continued, "ex-
ist solely because Of the protection CIV
en- the owners Of the public. They are
a constant source Of care and anxiety
to the public, and 1t Is eminently just
that they should be forced to pay
heavily for the protection given them.
1t is, of course, elementary that the
nation has the absolute right TO decide
as to the terms upon which any man
shall receive a bequest or devise from
another. We have repeatedly placed
such laws on our own statute books,
and they have repeatedly been declar-
ed constitutional by the courts. be-
lieve that the tax should contain the
progressive principle. Whatever any
Individual receives, whether by gift,
bequest, or devise, in life or in death,
should, after a certain amount Is
reached, be increasingly burdened; and
the rate of taxation should be increas-
ed in proportion to the remoteness OF
blood of the man receiving from the
man giving or devising. The principle
Of this progressive taxation Of inhert-
tances has not only been authoritative
ly recognized by the legislation of.con-
gress, but 1t is now unequivocally
adopted in the leading civilized ma
tions Of the world-in, for instance,
Great Britain, France and Germany.
Switzerland led off with the imposi-
ton Of high progressive rates. Great
Britain was the first Of the great ma
tions to follow suit, and within the last
few years both France and Germany
have adopted the principle. In Great
Britain all estates worth five thousand
dollars 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 or stran-
ger in blood the government receives
nearly 13 per cent.
As Il Is In France.
"In France, under the progressive
system, so much Of an Inheritance as
exceeds ten millions Of dollars pays
over 20 per cent to the state IL 1t
passes to distant relative. and per
cent If 1t passes to a direct heir. In
Germany very small inheritances are
exempt, but the tax is so sharply
progressive that an inheritance not In
agricultural or forest lands, which ex-
ceeds two hundred and fifty thousand
dollars, IL 1t goes to distant relatives,
is taxed at the rate Of about rs per
cent
"The German law is Of special inter-
est, because 1t makes the inheritance
tax an imperial measure, while allot-
ting to the individual states Of the en-
pire a portion Of the proceeds and per-
mitting them to impose taxes In ad-
dition to those imposed by the fmpe-
rial government. In the United States
the national government has more
than once imposed inheritance taxes In
addition to those imposed by the
10 inc
one-half Of the states levied such taxes
concurrently with the national gov
ernment, making q combined maxi
mum rate in some cases as high as
rs per cent and, as a matter Of fact,
several states adopted inheritance tax
laws for the first time while the ma
tional law was still in force and unre-
pealed.
A commendabIe Feature.
"Tbe French law has one feature
which Is to be heartily commended.
The progressive principle is so applied
that each higher rate is imposed only
on the excess above the amount SUD-
iect to the next lower rate. This plan
dudplCo ~ tAiS
out of the theory Of using the inheri-
tance tax for the purpose Of limiting
the size of inheritable fortunes, since
the progressive increase in the rates.
according to this mode, may be car
ried to it's logical conclusion in max
imum rate of nearly 100 per cent for
the amount in excess Of a specified
sum, without being confiscatory as TO
the rest Of the inheritance; for each
increase in rate would apply only to
the amount above a certain maximum.
1 do not believe that any advantage
comes either to the country as a whole
or to the individuals inheriting the
money by permitting the Transmission
in their entirety of such enormous for
tunes as have been accumulated IN
America. The tax could be made 10
bear more heavily upon persons resid-
ing out of the country than upon those
residing within it. Such a heavy pro-
orassive tax Is of course, in no shape