The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1922-02-04
inheritance Tax
To Conference?
Opposition to Income Meas
ure is Developing Strong
er Every Day

CT Every Lay
Columbia. Jan. 31.-The tax
legislation that is before the gem
cral assembly is coming TO q dctl-
mite head. The inheritance tax
proposal is now further advanced
than any Of the other bills and
will probably have TO so to free
conference on account OF some
confusion connected with the
amendment of Senator Hart. re-
ducing the fees for the handling
of estates OF course. the free
conference committee can change
the bill in whatever way it desires,
but the impression is that the
house will adopt the bill as 1t
came from the senate, as the senate
went over the bill at considerable
pains to clarity it. One interesting
feature Of the inheritance bill is
that where person leaves life in
surance, say to a wife or child
and that beneficiary is specifical-
ly named in the insurance policy,
under the proposed South Caro-
lima inheritance tax law such lnSur-
ance money would not become i
part of the estate and would not be
taxable under the inheritance tax
Law. The federal government in
its inheritance tax law eNempts
$4,000 when received from insur-
ance The state law does not car
~ this exemption, if the insurance
is payable to the estate. The theory
of the South Carolina bill being
that where q specific beneficiary is
named. the insurance money does
not become a part Of the estate, but
that when the beneficiary is an es-
tate, that it is only subject to the
exemptions that apply to any other
inheritance.
The income tax bill seems to
encounter more opposition than
was anticipated. This does not
mean that the bill is destined 20
be defeated but it does mean that
there is decided opposition to the
house bill. These differences may
be adjusted and the bill Lccoiac Il
law.
The bill is now before the fin
ance committee, and they will have
another important hearing this af-
ternoon on the measure. The com
mittcc is working as fast as it can
but it takes time TO unravel the
various kinks. Thus far the las,
important action Of the finance
committee on this particular bill
Is to make so percent cut in tho
rate as passed by the house.
Senator Padgctt. Of Colleton
has prepared and introduced .
substitute plan-the basic principle
of which is to reduce the exemp.
tons. In other words his idea is
that Ill net incomes Of $500 and
upwards should bear proper
tionatc part Of the income tax. His
/ bill has q lower rate than is il
the proposed house bill, beginnin.
1T one-half of l per cent. Funda.
mentally, the idea involved ir
Senator Padgett's bill is that if ar
income tax be just and proper
; there is no good reason why tht
man who has net income of So0t
or 81 200 should not pay his pro.
portionate part as well as the mar
who has larger income and would
| be called upon to- LAY larger tax
This idea H., oeen strongly urged
by former Senator Beattie, Of kcr.
shaw county, who has had consid.
! cradle experience with the fedora
income tax law
The finance committee has no,
yet acted upon the suggestion O.
l! making the proposed ,aw more
general in it's provisions Under
the proposed bill unmarried mer
are called upon to begin paying
,, the tax when they show d net in.
come Of 81, ,000 and married men a
$500. The pending proposition
is to reduce these amounts, say tt
begin with net incomes of $500
J and considerable fight will bt
made to have the law begin Will
; lower exemptions than the hous,
proposition. This promises to bt
the real fight on the house bill
| when it comes before the senate.
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