The Birmingham age-herald., 1907-12-04

65.0OO0OO. and expenditures, $3,275, 900. 1 The net excess of income over expendl- tures including in the latter the hfty 1 millions expended for the Panama canal, was one hundred and ninety million dol lars for the six years, an average or about thirty-one millions year. This represents an approximation between in- come and outgo which it would be hard to improve. The satisfactory working Of the present tariff law has been chieny responsible for this excellent showing Nevertheless, there is an evident and con stantly growing feeling among our peo- | pie that the time Is rapidly approaching when our system of revenue Legislation l must be revised.
 The Tariff.
 This country is definitely committed to | the protective system and any effort to 1 uproot it could not but cause widespread industrial disaster. In other words, the 1 principle Of the present tariff law could not with wisdom be changed. But In a country of such phenomenal growth as ours 1t is probably well that every dozen l years or so the tariff laws should be care 1 fully scrutinized so as to see that no excessive or improper benefits are con- ferred thereby, that proper revenue Is 1 provided, and that our foreign trade is encouraged. There must always be as a minimum a tariff which will not only l allow for the collection of an ample 1 revenue but which will at least make l good the difference in the labor cost 1 here and abroad, for the we'll being of the wage-worker must ever be cardinal 1 point of American policy. The question l should be approached purely from busi- ness standpoint; both the time and the manner of the change being such as to arouse the minimum of agitation and disturbance in the business world, and l priV fha Dla 1 tactional motives The sole consideration l should be to see that the sum total of l changes represents the public good. This | means that the subject cannot with wis dom be dealt with in the year preceding | a Presidential election, because as a l matter of fact experience has conclu- sively shown that at such time it is l impossible to get men to treat it from the standpoint of the public good. In l my judgment the wise time to deal with the matter is immediately after such 1 election.
 Income Tax and Inheritance Tax. When our tax laws are revised the question of an income tax and an inheri- ;, tance tax should receive the careful at tention of our legislators. In my judgment I both of these taxes should be part of l our system of federal taxation. I speak difhdently about the income tax because 1 one scheme for an income tax was de- clared unconstitutional by the supreme | court; while in addition it is difficult tax to administer in it's practical working and great care would have to be exercised | to see that It was not evaded by the 1 very men whom 1t was most desirable to have taxed, for if so evaded it would of course, be worse than no tax at all as the least desira ble of all taxes is the tax which bears heavily upon the honest as compared with the dishonest man. Nevertheless, graduated income tax of the proper type would be desirable i feature of federal taxation, and it is to De hoped that one may be devised which | the supreme court will declare consti- 1 tutional. The inheritance tax, however, , Is both far better method of taxation | and far more important for the purpose or having the fortunes of the country bear in proportion to their increase in 1 size corresponding increase and burden l or taxation. The government has the absolute right to decide as to the terms l upon which man shall receive a be- quest or devise from another, and this point in the devolution of property is es- ] peclaliy appropriate for the imposition 1 Of 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 prin- clple that is, after a certain amount is reached the bequest or gift, in life or
 
 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 civ illzed nations of the world In Great Britain all the estates worth s5000 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 stranger in blood the government re- 1 celves all told an amount equivalent to 1 nearly fifth of the whole estate In france so much of an inheritance as ex- ceeas slo0OO,0OO pays over a fifth to the state IT It passes to a distant relative.
 The German law is especially inter- estlng to us because it makes the in- neritance tax an imperial measure while allotting to the individual state.; Of the empire a portion of the pro- ceeos ana permitting them to impose taxes In addition to those imposed by the Imperial government. Small in- heritances are exempt, but the tax is so sharply progressive that when the in- herltance is still not very large, pro- Vided It is not an agricultural or a forest land, 1t is taxed at the rate of 20 per cent if 1t goes to distant reIa- l tlves. There is no reason why in the l Onlted states the national government should not impose inheritance taxes in addition to those imposed by the states | anu wien we last had an inheritance | tax about one-half of the states levied such taxes concurrently with the na- 1 tioEal government. making a combined | maximum rate in some cases as high as 20 per cent The French law has one feature which Is to be heartily | commended. The progressive princi- pie is so applied that each higher rate | Is imposed only on the excess above the amount subject to the next lower i rate; so that each increase of rate will | apply only to certain amount above l certain maximum. The tax sh | if possible be made to bear more heavi- ly upon those residing without the country than within it. A heavy progressive tax upon very large for tune Is in no way such tax upon thrift or Industry as like tax would be on small fortune. No advantage comes either to the country as a whole or to the individuals inheriting the money by permitting the transmission in their entirety of the enormous for tunes which would be affected by such tax; and as an incident to its func- tion of revenue raising, such a tax would help to preserve a measurable equality of opportunity for the people of the generations growing to man. hood. We have not the slightest sympathy with that socialistic idea which would try to put laziness, tn rift lessness and inefficiency on a par with industry. thrift and efficiency; which would strive to break up not merely private property. but what is far more important, the home. the chief prop