Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1907-06-10

feature Of federal taxation. and still
hope that one may be devised which the
supreme court will declare constitu-
tional.
In my Judgment, however, the In
heritance tax Is both a far better
method of taxation, and far more i'm
portant for the purpose have in view
the purpose of having the swollen
fortunes of the country bear in pro-
portion to their size constantly in
creasing burden Of taxation. These
fortunes exist solely because OF the
protection given the owners by the
public. They are constant source
of care and anxiety to the public ana
it is eminently just that they should
be forced to pay heavily for the pro-
lection given them. 1t is, OF course
elementary that the nation has the ap-
solute right to decide as to the terms
upon which any man shall receive q
bequest or devise from another. we
have repeatedly placed such laws on
our statute books. and they have re-
peatedly been declared constitutional
by the courts / believe that the tax
should contain the progressive prln-
ciple. Whatever any individual re-
ceives, whether by gift, bequest. OF
devise, in life or in death, should, after
a certain amount is reached, be IN
creasingly burdened; and the rate OF
taxation should be Increased in pro-
portion to the remoteness Of blood OF
the man receiving from the man
giving or devising, The prin-
cfple of this progressive taxation
=. ,Nt
thoritatively recognized by the legisla-
tion of congress- but 1t is now un-
e,quivocally adopted in the leading
civilized nations Of the world--ln, TOT
instance Great Britain, France, ana
Germany 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
many 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 S5,000,0Oo
In value and passes to a distant kins-
man or stranger in blood, the govern
ment receives nearly 18 per cent. In.
France, under the progressive system;
so much Of an inheritance as exceeds
10, ,0OO, 900 Of dollars pays over 20 per
cent to the state II 1t passes to dis
tant relative, and per cent if it passes
to direct heir. In Germany very
small inheritances are exempt, but the
tax Is SO sharply progressive that an
inheritance not in agricultural or for
est lands which exceeds $250,0o0, il 1t
goes to distant relatives, Is taxed at
the rate Of about % per cent. The
German law Is of special interest. be-
cause it makes the inheritance tax an
IMPERIAL measure, while sallotting to
the individual states Of the empire a
portion Of the proceeds and permitting
them to impose taxes in addition to
those imposed by the imperial govern
ment. In the United States the na-5
tiona1 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 concurrently
with the national government, making
a 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 be heartily commended. The pro-
gressive principle is so applied that
each higher rate is imposed only on
the excess above the amount subject
to the next lower rate. This plan is pc
culiarly adapted to the working out of
the theory of using the inheritance tax
for the purpose of limiting the size of
inheritable fortunes, since the pro-
gressive increase in the rates, accord
ing to this mode, may be carried to its
logical conclusion in a maximum rate
Of nearly one hundred per cent for the
amount IN excess Of specified sum.
without being confiscatory as to the
rest Of the Inheritance: for each in
crease in rate would apply only to the
amount above a certain maximum.