The Birmingham age-herald., 1913-02-03
LETTERS TO EDITOR
Inheritance Tax for Alabama
TC the Editor Of The Age-H erald:

Can you spare me space in your col
Umns for a brief discussion of the ques-
ton of an Inheritance or legacy tax?
have noted with satisfaction that the plan
is finding favor with some of Alabama s
political leaders, and certainly in view
cf the present condition of the states
finances, almost any suggestion looking
to the betterment of our tax system might
seen to be in order.
/ cannot recall having seen in any Ala
bama daily an explanation OF the differ
ence between the two forms in which the
tax is levied In other states. In many
CT the states the so-called progressive
or graduated" scheme Of taxation is ap-
piled to legacies, the rate of taxatipn in
creasing with the amount of the bequest.
recognized, further than by exelnpting
altogether the smallest amounts. The
tax rate is either varied according to the
degree of relationship between testator
and legatee; or else not varied at all.
| suspect that the average citizen of
Alabama thinks that the progressive
theory of taxation is known only to those
wealthy, thickly settled, industrial COM
munltieS Oh the lar northeast III Will
not be out of place then to outline tho
systems of Arkansas North Carolina,
and Texas-all of them, be it noted, for
merely slave holding and confederate
states.
ARKANSAS
O) To nearest relatives, rate / pei
cent. exempted 5000; t2) To uncle aunt
etc, 2 per cent, exempted $1,000: CD Be
quests to others as follows: $1,000 to $4,000,
9 per cent; $4,000 to $4,000. per cent;
$50 900 to $4,000 8 per cent; $4,000 and
over, per cent, exempted $1,000.
NORTH CAROLINA
"a Bequests to husband or wife. wholly
exempt; (9 To other near relatives, from
fraction of ] per cent up 20 per cent
according to degree of relationship; ex-
empted. $1,000: go Bequests to others as
follows: $1,000 to s5000 8 per cent; $4,000 to
| $4,000, 7ia per cent: $4,000 TO s25,000, IL
per cent; $4,000 to $4,000, 1915 per cent;
$4,000 and over, 10 per cent; exempt in all
cases. 5000
The inheritance taxes of Texas are
still more minutely graduated. Legacies
are divided into six classes as to amount
into three classes husband, wife, parents
rand children being allowed to inherit un-
taxed according to the degree of rela-
tionship. The rates run as follows:
TEXAS
beducstS ~ slStefs DTOlneIs etc. to .
per cent; exempt. $1,000; to uncle, aunt
| near cousins, g. 4. ., 6, 7. 8 per cent; ex-
empt $1,000; to others, 4, 5ls, Z, S1a, 10 l.
per cent; exempt, $500.
| Now. ] submit that Texas. krlan-
sas and North Carolina are not centers
\ or anarchistic agitation, or even of So
cialism. They are merely consistent
| In their democracy The Alabama leg
| islature is prompt enough in it's endorse
ment of a federal income tax, to be
imposed on the wealth accumulated with
| in our own borders? Let no man cry
| out confscation. The state government
must be run somehow, and new duties
| added functions are forced upon it yearly
Do we favor good roads, compulsory edu-
| cation, or pensions to veterans of the
war? All these good things cost money
and Will continue to cost. Let none cry
paternalism. The, government which of
fers its children 10 years or more OF
free education is paternaL and you cannot
make 1t anything else. Finally, let nc
one question the constitutionality Of pro-
gressive taxation. Such taxes upon IN.
heritance have stood the test of the
supreme court-no easy feat In these
days-and are now enforced in perhaps
20 states of the union. If federal au-
thority had denied the states the right
to discriminate against the swollen for
tunes of the few, we in Alabama woulo
probably be loud and bitter in our de-
nu1ciation. Yet having the right. we care
lessly fail to exercise it. Very truly
yours, NJ. c. BURKE.
| University, January 81. 1918.