Abilene weekly reflector. [volume] (Abilene, Kan.) 1888-1935, 1911-04-13
INHERITANCE TAXES.

b. E
the amendment OF the New York in
heritance tax law lends exceptional
Interest and timeliness to a subject
OF universal Importance. Almost
half the states Of the Union passed
inheritance tax laws in 1909 or 1910
and whereas but recently only
state or two enjoyed such laws, now
1 only ten are without them. The
fact Is that the legislatures have inni-
tated one another with an intelli-
gence worthy Of sheep or demagog-
ues. and a bIunder in one state. has
been repeated in another before the
courts have had an opportunity to
save the people from the protection
Of their friends. Most Of such legis-
lation is based on the idea that con-
ditions prevailing when the law is
enacted will be continued, and the
effect of the law is calculated on
that basis. Experience has shown
that nothing could be further from
the truth.
Gov. Dix in his message recited
the testimony of competent persons
to the effect that 100000, 900 Of
capital had fled from the state to
escape these taxes; and since the
governors message was published the
fact has come out that 800 safe
deposit boxes have been surrendered
by those DESTROYS Of placing their
property beyond the tax-gatherer.
And the significant thing Is that such
fugitive wealth Is not censured by
public opinion as ''eyading taxation"
In any obnoxious sense.
The explanation is the severity Of
the laws, the crudeness Of their con-
ception and their violation Of the
basic economic principles Of taxa
ton. Until the appearance Of this
compilation. there was no means Of
knowing just how bad these laws
are. 1t has been thought that New
York's confiscation Of a quarter Of
an estate was maximum. But Ok
lahoma takes more than 100 perl
cent under certain conditions, leav-
ing the estate owing something after
total confiscation. There is an ex-
PLANTATION and defense in Oklahoma
which New York cannot urge. New
York intended to levy exactly the
tax It did, and was disappointed toll
learn that 1t Is possible to make the
tax so heavy that It yields less than
a lower rate. Oklahoma merely for
got to carry out the schedule Of its
tax, which is made TO increase at the
rate Of one-tenth OF / per cent for
each 500 Of excess over the exemp-
itlon Of 5000. The rate becomes
100 per cent at $4,000. and the in
crease on the excess runs without
limit. On the assumption that clti-I
zen Of New York should die leaving
u, 600, 900 IN an Oklahoma corpora
'tlon, his tax in Oklahoma would be
S1.951,sS0, and he would have s4S,-|
O7O left with which to pay New
York's tax Of e41s.745 on the same
estate. The only parallel for this
confiscatlon Of more than the total
Of the estate IL the fine Of $40 for
carrying concealed weapons. being
an the cash which was found In the
pockets Of q dead man. along with q
revolver.
Most Of ~ are not millionaires,
but most Of US have something, or
have expectations. Accordingly the
most popular plan to likely to bel
Of evasion. The easiest IL that al
ready indicated BY Gov. ix-flight.
A counsel Of perfection Is that the
laws should b. 90 amended that du-
plIcasIons Of taxation might Be avoid
Cd. and that nomething Ike modern
tlon might be prdotiesd By states inI
such close nslehhorhood. for exam
pie, us New York and New Jersey.
some Investors keep their securities
IN such q Vay that transfers may bs|
Unnecessary. with their consequent
revolstons 10 the iar.glthofer. s1ne'
81 the largest estates PIT their own
o1hlp into corporations formed tor
ne purposo-a rorl o. holding con-
pany. different from fho ptpuiat
conception o. that sort o. ucsll1y|
m1lolactor IN cone Gases lcelters
hals rsnounco1 ltllr ls1u1..1. aElr1
|nr ia1f ~ rlia's stoaIi ~ o.
Iauls1 ~ I,on.1 IIisaals
~. rsz1s $500 Il f'f14 .r| N.