The morning journal-courier., 1908-01-02
INHERITANCE TAX
Facts About the Levies in 9th CT Countries and in
 Our States.
REGENT SPECIAL REPORT
Some of the Reasons Why a Fed eral Tax Is Not
 Needed.

The special report on the inherit ance tax laws, prepared by the bureau
 of commerce and labor at the request
 of the President, shows that the in i heritance tax is extensively employed throughout Europe and among the | American States, that the progressive principle In the assessment of this tax has been very generally adopted, and that the consttutionallty of progress sive inheritance taxation has been sus- tained by the American courts This | information Is familiar to the students President in issuing the report at this time is doubtless to inform the public concerning the general use of the in- heritance tax and its alleged constitu- tionality, with view to making pro- paganda for his favorlte project of federal inheritance taxation. By showing that this form of taxation is in general use and that its consttu- tionality has been repeatedly sustained he evidently hopes to create the inn pression that there Is nothing novel or objectionable in his own plan.
 As a matter of fact, there Is a sharp distinction to be drawn between the motives and methods of inheritance taxation in Europe and the plan of inheritance taxation advocated for this country by the President The primary aim of inheritance taxation in Europe an States Is to secure revenue. The expanding needs of government chief ly for military expenditures, create enormous pressure on all available sources of public income. The in 1 heritance tax has been adopted and extended chiefly to meet this need The idea of readjusting the distribu- ton of wealth by this agency has been merely incidental and subsidiary to the revenue object. In short press ing fiscal need is the reason for the general tise of the inheritance tax by European governments, and especially for the extension of the progressive principle.
 In this country the situation is strik- ingly different The national govern ment is not confronted with any ne- cessity for developing additional sources of revenue, although it may soon need additional revenue. This can be secured readily, as in the past, by increasing the internal revenue taxes. When new tax is really nee lei, a of bind an,tlJ Io interstate traffic; this tax 5oull be made to produce a large revenue and would not encounter the set.ous ob- jections that stand in the way If fed | eral inheritance taxation. Under the existing circumstances the anly pur" pose of urging progressive feler; inheritance tax is but tc readjust the natural distribution f wealth. That, however, is a very dangerous princi- | pie to advocate in q lemocratic coun- | try like the United State5 Its ai,p- tioE would open the way . retributvc | taxation of an intolerable character l nd encourage ,he evil of eN-
 ,ravagant expenditui es by congress.
 The fact that the inheritance tax is already employed by thirtv-sjx ..f the American States constitutes of itself weighty reason aga l st .he adoption of this tax by the national govern
 ment except under the m 5st urgent re- enue considerati on5. Until the na-
 tiolal government imperativeiv re-
 qu res this tax as q m ears of revenue
 1t would seem well t1 leave it exciu-
 a.Vely to the Sta e governments. It's
 add ption by the national government
 would violate the 3rincin;e of Separa-
 ton of revenue for the two govern
 ne;tal jurisdictions. State and nation-
 al, which corresponds to the natural
 division of functions between them