University Missourian. [volume] (Columbia, Mo.) 1908-1916, 1908-10-28


S. Huebner, assistant professor of tn
Wharton School of Finance and Com
merce, at the Second International Con
ference on State and local taxation a
Toronto, Canada. As the University o
Missouri is maintained, in large part, b!
a tax upon collateral inheritances, tn
address of DR.. Huebner reported in th'
Old Penn. Weekly, is of local interest
Recommends Tax.
Doctor Huebner strongly recommend
ed the inheritance tax as a convenient
revenue producer, which can be admin
istered with great ease and cheapness
and which is justified in view of the
recognized right of the State to regulate
inheritance to the extent that the public
welfare may demand. Exception was
taken to the idea, which in recent years
has received SO much popular support,
that the inheritance tax should be used
as means of recovering from the heir
by way of taxation an amount of prop
erty equivalent to the taxes which have
been evaded by the decedent during his
life time. Such plan was considered
impossible of application since it would
be futile to attempt to measure the
evasion of general property tax dur
ing life, since this would necessitate trac-
ing all the changes in the form and
value of the estate during the life of the
decedent, and would be bound to punish
the innocent with the guilty.
Decided exception was also taken by
Doctor Huebner to the proposition, so
frequently advanced, even in a recent
Presidential message, that the inheri-
tance tax should be used as means of
the general distribution of
wealth. "To accomplish much,' he said,
along this line through the use OF an
Inheritance tax would require at least
he adoption of a fifteen to thirty per
ent. rate on property passing to direct
IS well as to collateral heirs, since the
,reat mass of property passes to imme-
late relatives.
Law Would Defeat Itself.
Aside from the improbability of ever
any State Legislature to take
uch drastic action, it would certainly
hof Ia of 1
self and would lead to the withdrawal c
fortunes to State more Intent in its
'eatment, and if necessary to with
rawal from the country altogether. i
uch tax to be practical must be ap-
led without reference to individuals.
I'd the innocent accumulation of a for G.
HE would suffer with the dishonest Z
le, and legitimate industry and honest G
vestment would receive severe set u
lck. Just as it is impossible to use p
e inheritance tax to secure retributiOn q
the State for the evasion of property e'
xes, because it is impossible to fol- st
" for any considerable period, the re
rying changes in form and value of ca
estate, so it is impossible to justly a
,ulate the size of fortunes as between ii'
IN and man, because in hardly an in I'll
lnce can it be shown to what extent pc
arge estate is not honorably obtained III
In whatever way we regard the pro- VI.
'al of using the inheritance tax for I"
ial reform we cannot help reaching u"
conclusion that it is a clumsy method u"
best. Put the rate high enough to Us
npen a mans natural ambition to
fortune beyond a certain
mt, or make it impossible for him to ;pI
nsfer more than a certain amount to In,
sc that are nearest and dearest to for
J, and you do more harm than good by for
iting the enterprise which has made I'm
country what it is. M,
Questionable Fortunes. me
Many large fortunes in this country, Ill
true, have a very questionable foun- vi
ion. Some of tbem bovo tbr;,,od the
Oh. SOiuc vi tlieH nave lnr1VeU
ugh the dishonest management of MA
Others through the ruth 'ne
mOnopolization of articles which the cell
lie must consume, or through the es''
lisition of valuable franchises for a one
e song; still Others by obtaining GER 'r''
favOrs, such as rebates on trans 'eei
i,o.,
alton lines. Still another class of ''ei'
unes, in my opinion, the majority e'e'
: had their inception in the general sNe
rol of the security market and by per
lie of the fact that owners or mana ''al
of large corporations have inside III
nation. Approximately $4,000, ,OOO- Hall
Of American wealth is represented in es'a
Ks and bonds, which are freely dealt s.ra
l our great exchanges Many of the OF
rs here represented are seen to rise es'a
a sky-rocket in booms of prosperity, AS
in turn to drop as suddenly. Within Ne"
short space of two years, beginning OF
July, 1906, we have seen security exec
IS listed on the New York Exchange 'mr'
rise approximately $4,000, 900 900 re'e'
alue, then drop approximately S4,- I'VE