Arizona republican., 1911-09-16
Noel Says It Has 0ut|IVed
 Its Usefulness
QUOTED THE STATE LAWS
Says the Inheritance Tax Would be Made Largely Ineffective Through An temortem Disposition of Property.

SPRING LAKE, September 15.-Th
 direct tax system has outlived it
 usefulness for state needs and cal
 be superseded or made nominal b.
 the inheritance tax, aided by othe
 sources of state revenue which cal
 be fairly and equally collected, il
 the opinion of Governor Edmond r
 Noel of Mississippi, who addressed
 the Governors conference here today Governor Noel spoke to the text
 The Inheritance Tax and State Com
 ity"
 Its incidental effect" said Cover
 nor Noel, referring to the inheri'
 tance tax, through gradations ac- cording to kinship and progression as to amounts, inevitably tends t' regulate wealth by furnishing motive: for distribution in sums that escap, all or serious taxation, and by dis couraging wills to strangers or t' collateral kindred If such taxation b, made so onerous as to approximate cCnfiscation it would defeat it's owI purpose because those at whom il would directly aim, by change of res idence and skillfuI and secret method. of evasion could and would altogethcl escape its burdens"
 Governor Noers address was devot- ed chiefly to an outline of condition:
 in various states. He said in part
 our state legislatures determin, who can make wills; how they shal be made; what property may be; ol may not be, disposed of; and wh, shall or who shall not be beneficiar- ies. Along with this authority Ovel property and persons, within it's bOr- ders. goes the unquestionable righ of states to collect inheritance taxe, on all transfers of property. incident to death. Acquisition of property by will or inheritance. under our gov crnment. k neither d natural, nor q constitutional right, but is a privilege created and controlled by law
 All property. or interests in prop crty, transferred by death, or in con- temptation of death, is subject tc taxation. If tangible property, then the state where situated; and if i'm tangible property, such as money on hand or deposit, notes. stock or bonds in the state containing the domicii, of the decedent, or in which sucI rroperty may have been technical local situs, for instance, as to corpor- ate securities, stocks and bonds, the state granting the charter. and in which record transfers are to be made
 The tax laws of different states, n e fn ,a1n g.T sav-tt .g taxed, are widely var iant, resulting in occasional hardships. through double taxation. All benefi- ciaries are taxed in twenty-two states and only those that are collateral in sixteen states.
 Among the states, as to charges and exemptions, there are wide di- Thirteen states, Delaware. Iowa, Kentucky, Maryland, Missouri. Dakota, ohio. Pennsylvania, Texas. Vermont and Virginia, exempt, who'll y, lineal beneficiaries In some of the other states this exemption ap- plies solely to husband and Wife In the states that tax lineals. their tax, both minimum and maximum is generally much less than that i'm posed on collateral beneficiaries; for instance. in Wyoming, the lineal tax. in excess of exemption. is two per cent and the collateral five per cent. In those states having taxation, grades as to the degree of kinship and pro- gressive as to amounts, similar pro- portion prevails. In California which has the highest. both methods con- sdered, the maximum charges against Iineals range from one per cent to five per cent, and collaterals, from five to twenty-five per cent.
 The maximum in few other states is as high as five per cent Tor lineal and fifteen per cent for beneficiaries, only Kansas has both A few states have fixed charges, as to collateral beneficiaries. Utah and Minnesota have the same HXemption. $1O,OOO. and the same 'harges to both classes of benefic- aries. that of Utah being five per ,cnt, fixed, and Minnesota progressing rom IF per cent to per cent The Isual progressive charge is from one per cent to three per cent for lineal with scarcely four agreeing on col ateral beneficiaries. The varying ninimums, six of the latter collateral lave a maximum of fifteen per cent, wo twelve per cent and three ten ,er cent; the largest minimum being I12 per cent, in North Carolina.
 The states and their subdivisions Ire hard pressed for available sources ,f revenue, prevalent methods of in leritance taxation being welcomed as | God send This burden begins as he living expenses of the deceased owner ends; and, usually, not direct y upon the estate, but upon certain who, considering the ex- captions, are making but a reasonable to government for access If unearned wealth. The tax is sim 'le, easily understood and computed. difficult to evade. collected with small outlay and supervision, and in the