The herald and news. [volume] (Newberry S.C.) 1903-1937, 1907-06-21

peatedly been declared constitution
al by the Courts. I believe that the
tax should contain the progressive
principle. Whatever any individual
receives, whether by gift, bequest, or
devise, in life or in death, should, af-
, ter Il certain amount is reached, be
; increasingly burdened; and the rate
Of taxation should be increased in
proportion to the remoteness of blood
Of the man receiving from the man
giving or devising. The principle of
this progressive taxation of inheri-
tances has not only been authorita-
! lively recognized by the legislation
of Congress, but it is now unequivo-
cally adopted in the leading civilized
nations of the world-in, for Instance,
Great Britain, France and Germany.
Switzerland led off with the imposi-
tion 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 Ger
many have adopted the principle. In
Great Britain all estates worth five
thousand dollars or less are practi-
cally exempt from death duties, while
the increase is such that when an
estate exceeds five millions Of dol
lars in value and passes to distant
kinsman or stranger in blood the Gov
ernment receives nearly Is per cent.
AS it 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 if it
passes to n distant relative, and 5
per cent if it passes to direct heir.
In Germany very small inhcritances
are exempt, but the tax is so sharply
progressive that an inheritance not in
! agricultural or forest lands, which en-
cecds two hundred and fifty thous-
and dollars, if it goes to distant rela-
tives, is taxed at the rate Of about
25 per cent.
"The German law is of special in-
terest, because it makes the inheri-
tance tax an imperial measure, while
allotting 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 Government. In the United
: States the National 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 Ma
, tional Government, making COM
! bined maximum rate, in some cases
as high as rs per cent; and, as a mat
! ter Of fact. several States adopted
inheritance tax laws for the first
time while the national law was still
In force and unrcpealed.
A Commendable Feature.
"The French law has one feature
which is to be heartily commended
The progressive principle is SO appli,
ed that each higher rate is imposed
only on the excess above the amount
subject to the next lower rate. This
plan is peculiarly adapted to the
working out Of the theory Of using
the inheritance tax for the purpose
Of limiting the size of Unbeatable
fortunes, since the progressive in,
crease in the rates, according to this
mode, may be carried to it's logica
conclusion in maximum, rate Of near.
ly 100 per cent for the amount in
excess Of a specified sum, without be.
ing confiscatory as to the rest OF
the inheritance; for each increase in
rate would apply only to the amount
above certain maximum, I do moi
believe that any advantage comes
either to the country as a whole Or to
the individuals inhcriting 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 tc
bear more heavily upon persons re,
siding out of the country than upon
those residing within it. Such heavy
progressive tax is, of course, in nc
shape or way tax on thrift or in.
dustry, for thrift and industry have
ceased to possess any measurable
Importance in the acquisition of the
swollen fortunes Of which I speak
long before the tax would in any way