The Bon Homme County independent. [volume] (Tabor, S.D.) 1904-1913, 1910-05-05
One View Of Inheritanee Taxes.
From the Wall Street Journal.


We are likely to hear a good deal
about federal and state inheritance
taxes in the coming year. This source
of revenue is a tempting enc, and al
though there is a lively possibility of
conflict between the federalist and the
upholder of states rights, some Iegisla-
ton Of the kind seems to be more or
less probable. There is in fact, an
opportunity to do a great deal of mis-
chief from sheer Ignorance of the
principles involved in taxation gener-
ally.
The fairest of all taxes, and prob
ably the least popular, is the income
tax. Its incidence can be scientifically
distributed so that 1t shall not press
unduly upon the shoulders of any par
Jticular class. 1t is far superior to our
state property tax, and the collection
of il in England has. shown that the
possibilities Of evading 1t are relative
ly small. Next to the income tax,
probably the fairest method of collect
ing revenue is by import duties, placed
where their burden can be easiest
borne and will be least likely to affect
the nations productive capacity. Taxes
upon real estate values would prob
ably come next, and these tend to dis
tribute their burden; altho by no means
to the extent of taxes upon income or
duties upon imports.
1t will be seen that these methods
of raising money for carrying on the
public business are sound In the respect
that current expenses are being paid
for out of current income. This con-
dition is just one and political exper-
fence has shown that it is also uti-
mately Indispensable. The inheritance
tax Is always unsound in the essential
respect that. the nation which collects
1t for current expenditure is living out
of it's capital and not its income. This
fact Is already beginning to dawn upon
English chancellors Of the exchequer
who are finding that some of the larg-
est estates in England have been re-
duced below what may be called eff
cheney point by deaths Of the Inherit
ors in rapid succession, and the con-
seQuent drain upon the resources Of
even the greatest estates.
The wealth of a nation is the wealth
of the individual citizen multiplied by
the number of him, apart from matters
in the way OF undistributed public
lands and such public utilities as are
operated for the general benefit. The
wealthiest man in the world is, whether
he likes 1t or not, a source of wealth
to an enormous number of other peo-
pie. He can not hide his talent in
napkin. Under modern conditions his
wealth must be employed in commerce
and industry, and to tax the returns
therefrom is entirely proper. But for
the state to take that wealth piece
meal and spend it upon current ex-
penses is policy of very doubtful wis
dom.
We are after all only tenants for life
We are entitled to the income Of the
lordly heritage our fathers left us. We
are, in fact, morally bound to hand on
to our sons that heritage improved in
so far as we are able. We are not en-
titled to eat up the principal from
which our income is drawn. An inner
itance tax is an easy one to collect. All
the machinery is already there, and
most that is involved is a deduction in
y t,:nf, before a will Is admitted to pro-
Gate. The fact that such tax is easy
to levy is, however, by no means an
unmixed good. Our politicians waste
enough for us as 1t is, and their ca
pacity In that way is inexhaustible
The Iacl that the wealthy would pay
most heavily is extremely tewnting to
the superficial recsoncr, but the n5.
cessity that the true principles involved
should be understood is therefore only
the greater.