Grant County herald. [volume] (Lancaster, Wis.) 1850-1968, 1907-12-04
PRESIDENTS MESSAGE
Continued from fifth paGe:A

Continued from fifth pageA
rort TO ui,r0or it could not out c''''->.
widespread Industrial disaster In
otter words. the principle of the pres
ent tariff law could not with wisdom
lc changed. But in country of such
phenomenal growth as ours it is prob
ably vol that every dozen years or so
the tariff laws should be carefully scru-
tinted 50 rs to see that no excessive
or improper benefits are conferred
thereby that proper revenue is provid
ed and that our foreign trade is en-
cOuraged There must always be rs
minimum a tariff which viii not only
allow for the collection of mn ample
revenue, but which will ut least make
good the difference in cost of produc-
ton here and abIOad-that is, the diff
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 Il
business 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 to give the least play for selfish
and factional motives. The sole con-
sideration should be to see that the
sum total of changes represents the
public good. This means that the sub
ject cannot with wisdom be dealt with
In the year preceding a presidential
al hnr0nC0 n
experience has conclusively shown that
at such time it is impossible to get
men to treat 1t 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 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. l speak diffidently about
the income tax because one scheme for
an income tax was declared unconsti-
tutional by the supreme court, while in
addition it is difficult tax to admin
lister in its practical working, and great
care would have to be exercised to see
that 1t was not evaded by the very
men whom it was most desirable to
have taxed. Nevertheless a graduated
income YAK of the proper type would
be desirable feature of federal ia IA
ton, and it is to be hoped that one
may be devised which the supreme
court will declare constitutional
The Inheritance tax, however, is
far better method of taxation. The
government has the absolute right to
decide as to the terms upon which a
man shall receive q bequest from an
other, and this point in the devolutiOn
of property is especially appropriate
for the imposition of a tax. laws i'm
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 a 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 of blood of the man
receiving the bequest. These principles
are recognized already in tie 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 I'm addition to those imposed by
the imperial government Small inner
itances are exempt, but the tax is so
sharply progressive that when the in
heritance is still not very large, pro
vided it is not an agricultural or a for
est land, It's taxed at the rate of %
per cent if it goes to distant relatives.
There is no reason why i'm 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 an inheritance
tax about one-balf of the states levied
such taxes concurTently with the ma
tional government, making q combined
maximum rate I'm some eases as high
as % per cent
To Tax Nonresidents Higher.
The tax should if possible be made
to bear more heavily upon those resid-
ing without the country than within it.
A heavy progressive tax upon a very
large fortune Is in no way such a tax
upon thrift or industry as a like tax
would be on a small fortune. No adj
vantage comes either to the country
as a whole or to the individuals inner
fling the money by permitting the
transmission in their entirety of the
enormous fortunes which would be af
fected by such tax. and as an incl
dent to its function of revenue raising