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

eAAS
or wife, lineal issue and ancestors, ar
included in this term. Furthermore, II
I some of the States only personal prop
erty is taxed and only thirteen out o.
thirty-six States last year have seen nj
to make the tax progressive in some de-
gree, and in most cases the progression
is applicable only to collateral heirs
In some States, like Illinois, West Vir-
ginia and Wyoming, direct heirs are
granted exemptions of from $4,000 to
s25,OOO.
liz view of these imperfections, 1T
still speaks we'll for the tax in our COM
mOnwealth that on the average 1t may
be depended upon to produce annually
between $S,OOO,OOO and $9,OOO,OOO, and
that few years ago the yield was ap-
proximately equal to one-tifth OF the
total income derived from State corpor-
alton taxes. In States like New York,
PENNSYLVANIA and Illinois, mild as its
present form may seem, the tax has pro-
duced in single years as high as nine
teen per cent, thirteen per cent. and
eight and One-half per cent respectively
of the total tax receipts in those States.
These figures suggest the significance OF
this tax in the United States, if only
the States would turn to it more aggres-
sively as convenient and unObjectiOn-
able revenue producer. Little objection
could be raised, in view of the surpris- |
ing growth of this method of taxation |
all over the world, and the almost unan-
imous endorsement of the tax, if all
the American commonwealth would
proceed:
How To Levy Tax.
~ To tax both real and personal
estates since both contribute to the heirs
ability to help the government, and since
he back tax theory advanced in favor
If realty as compared with personality is
of just application.
"(2) To tax estates passing to direct
leirs Including only surviving wife or
lineal issue and ancestors), as
veil as to collateral heirs, with an inter-
Mediate class for brothers and sisters,
ncles and aunts, and their descendants.
''(3) To make the exemption for di-
ect heirs amount to, say $4,000, appli-
able to the share received by each heir,
ather than the entire estate, so as to +
ause no hardship in any case; and to
rant a very much smaller exemption, r
~ of from $500 to $3.50 for admins
'ative reasons, to persons who are not S
rect heirs.
"(4) To make the rate progressive in A
le case of direct as well as collateral
,irs; the rate ranging say from one to n
Te per cent. where direct heirs are in
lived, and from three to ten per cent. n,
the case of uncles, aunts and their
and from five to fifteen or n,
'enty per cent. where the property
sses to collateral heirs. The progress NJ
IN might be so arranged as to make
e maximum rate apply when the share Ba
,eived by any heir exceeds $5OO,0OO.
le gradation in rates might be so ad Int
'ted that in the case of direct heirs,
would be one per cent. on the excess Tn
er deducting the exemption from
1000 two per cent. on shares amount Crt
! to between $4,000 and $50 900, three
cent between $4,000 and 100000, CIR,
If per cent between 100000 and
! $780, 1000, and five per cent. on the ex- Va
S above $5OO,OOO. The rate, how
r, to avoid injustice, should apply Bat
each case only to the excess after
uction of the exemption of $4,000 Bae
the case of direct heirs, and a much
aller exemption, say $500 and $3.50, Spa
he case of the other classes of heirs.
For Education. The
(5) In view of the willingness and
uency with which the possessors of AND
e estates contribute to institutions of Aho
ming and charity, l would like to sug-
that this tax be imposed as much l"l
possible with the understanding that AND
proceeds be not used for ordinary
,nses, but instead be devoted to some
ial service of interest to all the citi-
!. Every State has numerous insti-
ons to support. Why could not the III
eeds of this tax be devoted to the the
< of education and more particularly dlsal
he maintenance of our universities -
higher institutions of learning?"
J regards the appropriation of the ..,o,
nue. Doctor Huebner was strongly s. :.
he opinion that the inheritance tax 80
Id be reserved wholly for the use ,oua
he several States and that the re-
ing of the Federal government into .L1--
field of taxation, as it did during -.
Spanish American War of 1898. is -
ly unnecessary from fiscal stand
!, unproductive of any good, and "a =,
d be the cause of much inconveni-
and positive harm. The Federal