The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1907-06-12
THE INHERITANCE TAX IDEA.

In outlining his views concerning ar
inheritance tax before the National Edi-
torial association at jamestown Mon
day, President Roosevelt went further
than he ever has before and demonstra-
| ted that 1t Is his idea to use this
means to prevent the accumulation OF
such great fortunes as Rockefeller,
Carnegie and some others possess.
The Popuiists-some of them-used TO
assert that the rich are growing richer
while the poor are becoming poorer. and
that the time would come when a few
rich men would own nearly all the
wealth. The Industrious poor have not
been growing poorer in these latter
days of prosperity, but the wealth OF
the enormously rich has been increas-
ing so rapidly that their great fortunes
have become an actual menace to the
nation.
President Roosevelt has therefore
devised this inheritance tax idea-or
borrowed it perhaps-to keep down
the growth of these excessive fortunes
and to disseminate them in case they
do become excessive. He would have
the tax progressive, that is, the per-
centage growing larger as the fortune
becomes greater, but he does not state
exactly where he would draw the line
between the different classes. He does
point out, however. where the lines are
drawn in some European countries. In
Great Britain, for instance, Inherit
ances of less than $1,000 are practically
exempt from taxation, but from that
point UP the tax increases until it is
IS per cent on a fortune or $5,OOO,OOO
under certain conditions, or almost one
fifth of the whole. Fortunes of that
size are by no means rare in this coun-
try. In France, if a fortune of &c.
oOO. 900 is bequeathed to a distant rela-
tive. two millions of the amount would
20 to the government for taxes. In
Germany the rate of progression is
even greater.
The president would have the rate
small on the lower figures, but he makes
1t evident that he would increase it to
upwards Of 100 per cent as the figures
increase. This. he points out, would
practically prohibit excessive inherit
ances without being confiscatory of
those of more moderate size.
For instance, the first $4,000 might be
exempt. From that to 100000 might
be taxed small fraction.
On the next 100000 the tax should be
larger. This would allow an Inherit
ance of a million dollars without a
burdensome tax On that portion of
the inheritance that is between one
and five millions the tax might be
made per cent; between five and ten
millions, 10 per cent; between ten and
twenty millions. % per cent; between
twenty and fifty millions, so per cent;
between fifty and one hundred millions.
rs per cent; and. above one hundred
millions, 90 per cent.
On a scale of this kind the tax on
an inheritance of a million dollars
would be small; that on a million
dollar estate would be a little over
5000, 900; on 10 millions it would be a
little over $700.0 on 25 millions it
would be So 200, 900; on so millions, $1S,-
200. OOO and on 100 millions the tax
would amount to nearly half. or $45,-
700. 900; while on a fortune of the sup
posed size of John d. Rockefeller's, a
half billion, the tax would amount to
s4O5, zoo, 900, so that the heirs would in
herit a little less than 100 millions,
practically limiting fortunes to that
size.
A plan of this kind, as the president
points out, would not tend to suppress
thrift and industry, for there would
still be an incentive to accumulate
moderate fortune. It would, however,
remove to a great degree the incentive
to build up an excessive fortune. The
result would naturally be that men
would cease striving to pile up wealth
after they have accumulated a few
but would use 1t for the bene-
fit of their fellows. If they should
keep on amassing great wealth, most
OF the excess would eventually revert to
the people by means of the inheritance
tax.
This plan would work no hardship, |
for it is a well known fact that ex-
cessive fortunes frequently ruin those |
who inherit them.