Evening star. [volume] (Washington, D.C.) 1854-1972, 1924-12-29
INHERITANCE TAX
| REFORMS SOUGHT
National Association Confer
enCe Views System as
ConfiscatOry.
RY FREDERIC WILLIAM VILE.


Early months of the new year Will
witness the launching of a concerted
effort to bring about reforms in the
6ation's inheritance tax laws. Presi-
Gent Coolidge on several occasions has
urged the necessity of reorganiZing
the dual system of State and Federal
estate taxes. which is almost conf1s
catory in effect. To grapple with the
problem in all it's details, the National
Tax Association has called a con-
ference of 46 States, to be convened
In Washington as soon as possible
otter February !. The prime mover
in the enterprise Is the president of
tha association, Thomas w. Page,
former chairman of the United States
Tariff Commission and professor of
economics at the University of Eir-
Einia.
1t was hoped to hold the conference
during the first week Of February, but
owing to important business pending
before many State legislatures 1t
probably will be impossible to as
kemble IL until after adjournment of
Congress. At one time President
Coolidge intended to invite State
governors, tax commissioners, and at
eorneys general TO confer in Wash
sngton with Federal tax officials on
Inheritance tax matters and core
lated questions 1t is stated at the
White House that no such plan is
Pow on the Presidents program. He
believes a conference is highly de-
tlrable and is certain to give execu-
five support to the National Tax AS
eoctation's scheme.
Meeting for Discussion.
The proposed conference" said
81. Page TO this writer, lis purely
FOR consultation and discussion. To
bring about the repeal of the Fed
eral estate tax is not essentially its
purpose. What is primarily aimed at
j. the discovery of ways and means
For securing relief from the we'll
htgh intolerable situation now ex-
4sting. 1t has become evident that
che time has arrived for action of
somewhat more fundamental char
ecter than mere meeting and discus
zion by those who will attend the
conference. There is imperative need
tor concerted action of a some what
official character. A condition where
BY taxes collected on one estate by
Che Federal Government and per-
paps half dozen State governments
may more than consume the entire
estate IS palpably a chaotic and un-
sust system. 1t can obviously be
eemedied only by the working out of
Fome plan Of uniform and nonover-
tapping taxes on Inheritance.
The following definite alterna-
gives are. therefore, sharply present
ed at this time and demand the seri-
GUS attention of all citizens, who
must necessarily look to the State
and Federal officials in the first in
stance for a solution:
l. Abandonment of inheritance
faxes as a source Of State revenue
,. COLLECTION of such taxes bv the
Federal Government, with distribu-
zion by it of part or all of the yield
among the States.
5. Abandonment of these taxes as
. source of Federal revenue, with a
working agreement among the States
70 accomplish equitable results"
Interest Intensive.
The National Tax Associations pre-
{iminary activities have developed an
Sntensive interest in the conference
program. Alabama and Florida are
the only States in the whole Union
that do not impose inheritance taxes.
in nearly all of the other IS States
there is the liveliese desire to end the
tnudd1e that now permits Uncle Sam
end the various State treasures be-
tween them to mulCt heirs in many
cases out of their whole birthright
1udicrously unfair results ensue. and
endless confusion. At the present
time. the representatives of an estate
often have to pay a tax not only to
Che Federal Government. but a tax
o. varying rates to many different
States in which at certain date
Qecedents property was located On
one share of railroad stock an estate
pay have to pay both Federal estate
taN and an inheritance tax to the
seVeral States in which the road op-
crates. Taxes and expense incident
so determination and payment may
n0der the present system. easily
smount to considerably more than
Che value of tho stock.
David r. Gamble, soap king. who
passed away recently in Pasadena.
was able to leave only 60 per cent
pf his millions to his heirs. The
Federal Governments took about II
per cent in estate tax: Ohio and
california took 10 per cent each. A
Boston millionaire left an estate at
(which no fewer than s States took
~ inheritance-tax walIop. The
great Flsgler estate was preyed up
on by Fl different State tax collectors
8 New York banker, who left an
estate OF more than S40.000,O0o, was
the testator OF only s24.O00.000 by
the time Federal and State tax COM
Nlissioners We're through with it
sistate taxes collected by the Federal
government during the fiscal year
ended June 80, 1924. totaled S1O2966-
sGl. Secretary Mellon once described
ouch taxation as economic suicide"
because the capital fund Of the Nation
g. transferred into the Golfers of the
government and by II used for oper-
sting expenses. Otto ii. Kahn, New
Sork banker and economist assails
Inheritance taxation on the ground
that lit leaves entirely untouched
the wastrel, who never laid by a cent
g. his life. and penalties him who
pra cticed industry, thrift and self
denial"
Copyright 1924