Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1917-02-08
VANISHING STATE REVENUE
How the Party in Power is En-
crOaching on States.
sources OF Stntc Income Ucing Taken
for Federal observation-disclosures
Taxes and So
on.

In view of the fact that Congress APP
parenty proposes to encroach further up
on the rights of the states by increasing
the federal inheritance tax and by i'm
posing another tax to he known as cor
porsite excess" v is interesting to note
what Senator Dillingham; wrote the com
missioner of taxes, as of date February
.S, 1915.
The citizens of Vermont are. or ought
to be vitality interested in these matters.
and we publish the correspondence in full.
The letter of Commissioner Plumley is as
follows:
Hon William L. Dillingham;,
United States Senator,
Washington, ID. G.
Dear Senator Dillingham;:
NY attention has been called to the fact
that there has been introduced in the
House Of Representatives by Mr.. SABBATH,
1H. y. Seg) bill which would authorize
tax on gifts, legacies and inhertances.
am opposed to this and all similar meas
ures. and rs commissioner OF taxes OF
the state OF Vermont I feel it my duty
TO suggest that the State OF Vermont can
not well surrender any source of revenue;
to call your attention to the fact that
the tax upon inheritances has always been
regarded as strictly and naturally a
fully request that you use your influence
and cast your vote against any legisla-
ton looking toward the imposition of a
federal inheritance tax.
Very respectfully yours.
(Signed) CHARLES A. PLt'MI.EY.
Commissioner.
To this letter Senator Dillingham; re
piled as follows:
Washington. y. C., Feb. n. 1916
Hon Charles A. Plumey,
Mortified, Vt.
Ny dear Piumley
! am just now in receipt OF your letter Of
the 24th instant and find it refreshing to
have a citizen of your prominence share
the feeling have long entertained against
any encroachment BY the general gov
eminent uron the reserved rights OF the
States. or upon those fields Of taxation
heretofore solely occupied by them and
which arc necessary to their existence.
| regarded it a mistake when the States
ratified the constitutional amendment con-
ferring upon the general government the
power to impose taxes upon incomes, be-
lieving, as ! did. that the time was near
when the States with their rapidly in
creaSing expenses would find it necessary
TO resort to this method of taxation for
State purposes. AT the time this was
done the people were assured that the fed
eral government would only resort to its
use in case Of war or other great national
eXigency; but 10 sooner was the power
secured than il WIS exercised in a time
Of profound peace to meet current ex-
penses. AS Il result of this action Yer
mont, in addition to her State and mum
cipal taxation. has been compelled TO
contribute directly to the expenses OF the
general government pretty nearly $3.50 00'
annually. II, in addition to this, her peo-
pie must be subjected to a federal tax on
Iegacies and inneritaIrces they may well
regard such action az oppressive.
1t is most unfortunate that Vermont,
as we'll as the otner States, should be
subjected to these federal taxes at a
time her people are burdened with obi
cations incident TO the demand OF the
times for better government better
schools, better streets and highways,
modern water and sewer systems, etc.
Z is the more regretablc when we remem-
Der the long series of years when it was
demonstrated that the government Of the
United States could be administered so
rs to pay all of its current obligations and
have remaining in her treasury an an
nual surplus, without resorting to these
direct methods OF taxation.
I quite agree with you that "A halt
should be called along the lines you men
ton and I would be glad to carry your
suggestions into other new and danger
Gus fields OF federal legislation which en-
danger the rights Of the people to local
selfgovernment
Sincerely yours.
(Signed) w. +. DIILLNGfLAM
In his biennial report on pages four,
/ i've and six. the commissioner of taxes
publishes the above correspondence and
concludes his comments on the situation
by saying
| Replies were received from all the
members OF the delegation expressing Il
decided opposition to the imposition of 4
federal tax.
The federal government having seen n.
to impose tax upon inheritanccs, al
though the law as passed does not affect
estates valued under IS 900. has adopted
policy, which, carried 10 its logical con-
clusion. may eventually compel Vermont
to reduce its rate to such an extent as to
very materially reduce its revenue. or to
abandon this form OF taxation entirely -
4 In this connection it is interesting tc
know that the revenue derived from col
lateral inheritances during the last hi
enniai period amounted to $lS2SOi 20
which is an increase OF substantially 81,