The daily telegram. [volume] (Clarksburg, W. Va.) 1901-1926, 1911-09-15
Is the Bee lon Made by
Governo bel at Con-
ference oday
TAXATION
As Well as roper Inheri-
lance Tax S stem is Dis
cussed 4 Him.

SPRING LAKE, ept. 15--The d.
rect tax system outllved its use
fulness for state eds and can be
superseded or MAD nominal by the
inheritance tax. sd 3 l5y other sources
OF state revenue ich can be fairly
and equally coiiee d. IN the opinion
Of Governor Eduta F. Noel, of Mis-
sisstppi. who add sed the Govern
ors' Conference hel today. Governor
%oel spoke TO the St. "The InherI-
/ t,rnce TAX ana Stat Comfy
sIts incidental feet." said Gov
ernor NSei. seferr 3 10 the inheri-
lance tax. -.througl5e sradations nc-
cordInE to kfnshIp BID progression as
to amounts, inevitably tends to regu-
late wealth by furn.s hing motives for
distribution In SUM that escape all
or serious taxation, Ind by discouras-
ing wills to stranges or to collateral
kindred. II such hxation be made
so Onerous as to approximate confis-
cation it would de4eat its own pur-
pose because those At whom it would
directly aim. by change of residence
and skilIfuI and secret methods of
evasion could and would altogether
escape IT'S burdens
Governor Noel's address was de-
voted chiefly to an outline OF condI-
tIons in various states. He said in
part:
Our state legislatures determine
who can make wills; how they shall
be made. what properly may be, or
may not he, so disposed of; and who
shall. or who shall not, he beneficiar-
les. Along with this authority over
property and persons, within its bor-
ders. goes the UNREASONABLE right
of the state to collect Inheritance taxes
on all transfers of properly. incident
to death. Acquisition OF property by
will or inheritance. under our gov
eminent, is neither natural, nor a
constitutional right, but is a privilege
created and controlled by law.
'.Au properly. or interests in prop
erty. transferred by death. or in con-
temptation of death. is subject to tax
alton. If tangible property. then
in the state where situated, and
II intangible property, such as
money on hand or Deposit notes.
stock or bonds. in the state containing
the domicile of the decedent, or in
which such property may have been
technical local situs, for instance, as
to corporate securities. stocks and
bonds, the state granting the charter
and in which record transfers are TO
he made.
THE tax laws OF different states.
both as to classes of property and of
benefclaries taxed, are widely vari-
ant. resulting in occasional hardships.
through double taxation. All beneh-
ciaries are taxed in twenty-five states
and only those that are collateral in
sixteen states.
Among the states. as to charges
and exemptions. there are wide diver
gencies. Thirteen states, Delaware,
Iowa, Kentucky. Maryland, Mississip-
ri. New Hampshire. New Jersey,
North Dakota. Ohio, Pennsylvania.
Texas, Vermont, and Virginia, exempt.
wholly. MneaI benefciaries. In some
Of the other states this exemption APP
plies solely to husband and wife. In
the states that tax lIneals, their tax,
both minimum and maximum, is gen
orally much less than that imposed
on collateral beneficiaries; for in
stance, in wyoming, the lIneaI tax.
in excess of exemption. is two per
cent and the collateral five per cent.
In those SlsAleS llhhltiB L&A'eAt'OAA -
as to the degrees of kinship and pro-
gressive as TO amounts, similar pro-
portion prevails. In California. which
has the highest. both methods consid-
cred. the maximum charges against
lineals range from one per cent to
Ave per cent and collaterals, from five
to twenty-five per cent.
The maximum in few other
states is as high as five per cent for
IineaI and fifteen per cent for collat-
eraI. benefciaries, only Kansas has
both. A few states have fixed charges.
as to collateral benehcIaries. Utah
and Minnesota have the same ex-
emption, $40. 100000 and lie same
charges to both classes of benefclar-
les. that of Utah being five per cent.
fixed. and Minnesota progressing from
one and one-half per cent to five per
cent. The usual progressive charge is
from one per cent to three per cent
for Hneal. with scarcely four agreeing
on collateral, beneficiaries. With vary
ing mlnimums. six of the latter, col
lateral, have a maximum of fifteen per
cent. two - per cent and three 10
per cent; the largest minimum being
~ per cent In North Carolina.
THE states and their subdivisions
are hard pressed for available sources
of revenue, prevalent methods OF in
heritnnce taxation being welcomed as