The Sentinel=record., 1911-09-16
DIRECT TAX
 SYSTEM DEAD
GOVERNOR NOEL, OF MISSISSIPPI. Pl. SAYS THE SYSTEM HAS
 OUTLINED USEFULNESS.
Should be Superseded by inheritance Tax, and Other Sources of State
 Revenue More Easily Collected.

SbFhg Lake, Sept l14.-The iii ref bx systEm has outlived it's usefulness for state needs and can be. superseded or mace nominal by the inheritance tax. aided by other sources of state revenue which can be fairly and equally collected. in the opinion of Governor Edmond F. Noel of Mississippi, Who addressed the Governors Conference here to- day. Governor Noel spoke to the text "The Inheritance Tax and State Comity."
 "I.'s incidental effects" said Gov ernor Noel, referring to the inherit ance tax, through gradations ac- cording to kinship and progressive as to amounts, inevitably tends to regu- late wealth by furnishing motives for distribution in sums that escape all or serious taxation and by discour- aging wills to strangers or to col lateral kindred. If such taxation be made so onerous as to approximate confiscation it would defeat it's own purpose because those at whom it would chiefly aim. by changes of res idence and skillful and secret meth ods of exasion could and would al- together escape its burdens. ?
 Governor Noers address, was de- voted chiefly to an outline of con ditions in various states. He said in part:
 "Our state legislatures determine who can mahe wills; how they shall be made what property may be; or may not be, 80 disposed of; and who !. saall, or who shall not be beneficiar- ies. Along with this authority over property and persons, within it's bor- ders, goes the unquestionabe right of states to collect inheritance taxes on all transfers of property, incident 10 death. Acquisition of property by will or inheritance, under our gov ernment, is neither a natural, nor a
 
 constitutional right, but is a priv iege, created and controlled by law,
 All property or interests in the property, transferred by death, or in contemplation of death, is subject to taxation. If tangible property then in the state where situated; and if 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 tech nical local suites, for instance, as to corporate securities, stock and bonds the state granting the charter, and in which record transfers are to oe made.
 "The tax laws of different states, both as to classes of property and of beneficiaries taxed. are widely var iant. resulting in occasional hard ships. through double taxation. All beneficiaries are taxed in twenty-two states and only those that are col lateral in 16 states.
 Among the states, as to charges md exemptions, there are wide diver- gencies. Thirteen states, Delaware, Iowa. Kentucky. Maryland Missouri New Hampshire. New Jersey, North Dakota, Ohio, Pennsylvania, Texas. Vermont and Virginia. exempt, who'll lv nneal beneficiaries. In some 2i the other states this exemption ap- plies solely to husband and wife Ill the states that tax lineals, their 'aN' to,b mlnmum and maximum is Se'i- ofaiiv much less than that impoSea on co. iaiefal benefio.aries; Tor IL s4ancr. in Wyoming, the llneal 'aA in excess 0. exemption is two re' can. and tae collateral five per fehS In taose states having taxation, me ,,,des as to the degree of kinsho q ,a rre r.asl i've as to amounts, sun liar ,rcputon prevails In califor nIa which has the highest both ih T'h~ ais considered, the maximum caa'5es aeainsr lnt ls range from one per cen, to five per cent and colla'e'lis fsom [ to 25 per cent.
 ~The lu ir.cp IT few o'iFi 4..;es is as hih az : per cent ''i liueal nai nsv cent for colla' ''ei' I4tar bstefiei res. oa.f %ansas mas A few 5 ate, .,Hve fiNed charges Y u cata.erm bssef'9ipf es u'an . = = Misnesra aavs the sefe eAemps'''