The Greenville journal. [volume] (Greenville, Ohio) 1850-1918, 1907-06-20

nallOnAl forests VIII lUlnll the larger
purpose for which they were created.
All who have thOughtfully studied the
subject have come to see that the solu-
tion of the public lands question lies
with the home maker, with the settler
who lives on his land and that gov
ernment control Of tho mineral fuels
and the public grazing lands is neces-
sary and inevitable. Each of these
conclusions represented a movement
of east Importance which would confer
large benefits upon the nation, but
which stood by itself. fhey are con-
nected together into oEs great fund.-
mental problem-that of the COLI
servation of all our natural resources.
Upon the wise solution of this, much
OF OAR future obviously depends. Even
such questions as the regulation of
railway rates and the control of cor
porations are in reality subsidiary to
the primal problem of the preservation
in the interests of the whole people of
the resources that nature has given us.
If We fail to solve this problem, no
skill in solving the others will in the
end avail us very greatly.
Now as to the matter of taxation.
Most great civilized countries have an
income tax and an inheritance tax.
In my judgment both should be part
of our system of federal taxation.
speak difiidently about the income tax
because one scheme for an income tax
was declared unconstitutional by the
supreme court by a five to four vote;
and in addition it is a difficult tax to
administer in it's practical workings,
and great care would have to be eXer-
ciSed to see that it was not evaded
by the very man whom it is most de-
sirable 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, q gradu-
ated income tax of the proper type
would be desirable permanent fea-
ture of federal taxation, and l still
hope that one may be devised which the
supreme court will declare constitu-
tional.
Inheritance Tax.
In my Judgment. however, the in
heritance tax is both far better meth
cd of taxation, and far more important
for the purpose l have in view-the
purpose of having the swollen fortunes
of the country bear in proportion to
their size a constantly increasing bur-
den of taxation. These fortunes exist
solely because of the protection given
the owners by the public. They are a
constant source of care and anxiety
to the public and it is eminently just
that they should be forced to pay heav-
lily for the protection given them. 1t
is. of course, elementary that the ma
ton has the absolute right to decide as
to the terms upon which any man
shall receive bequest or devise from
k.N.I N1,., n
such laws on our own statute books,
and they have repeatedly been declared
constitutional by the courts. l believe
that the tax should contain the pro-
gressive principle. Whatever any in
dividual receives, whether by gift, be-
quest, or devise, in life or in DEATH
should, after a certain amount is
reached be increasingly burdened; and
the rate of taxation should be in
creased in proportion to the remote
ness of blood of the man receiving
from the man giving or deVising. The
principle Of this progressive taxation
of inheritance has not only been au-
thoriatively recognized by the lcgisla-
ton of congress, but it is now un-
equivocally adopted in the leading civ
ilized nations of the world. in, 70" in
st2r"e, Great Bfitain, France and Ger
many. Switzerland led off with the
imposition of high progressive rates.
Great Britain was the first of the great
nations to follow suit, and within the
last few years both France and Ger
amny have adopted the principle. In
Great Britain all estates worth $4,000
or less are practically exempt from
death duties. while the increase is
such that when an estate exceeds
1000. 900 in value and passes to dis
tant kinsman or stranger in blood the
government receives nearly Is per
cent In France, under the progressive
system, so much of an Inheritance as
exceeds $l0,000,000 pays over 20 per
cent. to the state il it passes to a dis
tant relative, and five per cent. If it
passes to n direct heir. In Germany
very small inheritance are exempt. but
the tax is so sharply progressive that
an Inheritance not in agricultural or
forest lands which exceeds $2oO,OOO,
if it goes to distant relatives, is
taxed at the rate of about - per cent.
The German law is of special interest,
because it makes the Inheritance tax
an imperial measure, while allotting
to the individual states of the empire
a portion of the proceeds and permit
ting them to impose taxes in addition
to those imposed by the imperial gov
ernment. In the United States the ma
tional government has more than once
imposed inheritance taxes in addition
to those imposed by the states, and
in the last instance about one-half OF
the states levied such taxes concur
rently with the national government
making q combined maximum rate, IN
some cases as high as 25 per cent;
and. as a matter of fact, several states
adopted inheritance tax laws for the
first time while the national law was
still in force and unrepealed. The
French law has one feature which is to
he heartily commended. The progress
sive principle is so applied that each
higher rate is imposed only on the eX-
cess above the amount subject tc
the next lower rate. This plain is
peculiarly adapted TO the working out
of the theory of using the inherit
arce 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
maximum rate of nearly 100 pei
cent. for the amount In excess oi
a specificd sum, without being con-
fiscatory as to the rest OF the inherit
ance: for each increase in rate would
apply only to the amount above GER
tain maximum.
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