The Dawson news. (Dawson, Ga.) 1889-current, 1925-11-03
PREDICTS ESTATE TAX
WILL NOT Be REPEALED
PATE MAY BE LOWERED, BUT
leaders SEE POINT AS
FOCUS OF A FIGHT.
FLORIDA BOOM IS A FACTOR

Come of Greatest Fortunes of Coun-
+ry Are Involved in Issue. Meeting
0f Governors Will Be Held This
Month to Urge Repeal.
WASHINGTON, D. C.-Despite
enormous pressure being brought to
hear from the white house, from the
treasury, the governors Of many states
and by the commercial interests OF
more than a score of states, it seemed
unlikely today that the congressional
trainers of the new revenue act will
remove the present federal tax on in
heritances.
The rate of such tax may be low
ered but both Representative Green
,republican), of Iowa, and Represent
alive Garner, Of Texas, the majority
and minority leaders Of the powerful
vays and means committee, were pos
hive Thursday the tax will be retain
ed.
Great Sums Involved.
The whole taxation fight appeared
yeerng more and more Thursday to-
ward making the inheritance tax the
local point OF the conflict. Practical
agreement has been reached on a max
mum surtax of 20 per cent, and a
substantial cut in the lower brackets.
Some OF the greatest fortunes in
America are involved in the inherit
ance tax issue.
Oddly enough, the Florida real es-
tate boom indirectly has become a
considerable factor in the controversy
The state of Florida adopted an
amendment to its constitution provid-
inc that the state will never impose a
tax on inheritances. The amendment
was shrewdly drawn to attract wealth
to the state as a place OF permanent
residence, and assure it OF non-inter-
4 ference alter death.
Rightly or wrongly, this invitation
4 TO wealth to come to Florida and be
secure from dsintegration is credited
i in no small way with the remarkable
& Development that has taken place
& there AT least, it has been an import
ant contributing factor to drawing
s capital cut of the north and into the
y state.
Now it is the belief OF congression-
4 al leaders that if the federal tax on in
Il bertances is removed, number OF
4 states will be attracted by the Florida
4 example and pass similar amendments
TO their constitutions as bid for cap
i ral Investment. Chambers OF COM
II merce and business organizations IN
many states have recently been COM
planning OF the Florida immigration"
\ Of people with money.
Once remove the federal inherit
ance tax and You'll find states, partic-
llarly the new ones, falling all over
+ themselves to enact similar constltu-
q tonal amendments, said one member
& Of the committee.
u While it is probable that some OF
Il the agitation for repeating the lnher-
s. tauce tax comes from sources inter
8 ested for the Florida reason, on the
Z other hand there is an insistent de-
mand from a majority OF state repre-
E Sentatives that the government go out
& Of the inheritance taxing business so
T that the states can obtain more reve-
s. nue. Tor their treasures A meeting OF
governors and state representatives
Il will be held in New Orleans this
& month to organize an interstate move
s mcnt to this end.
Ford as Example.
Agitation for the repeal OF the tax
comes also from the possessors OF
great industrial fortunes.
The example of Henry Ford Will
81 provide much argument when the new
tax bill reaches the floor OF congress
Tor open debate.
Ford's is a going concern" the as
sets Of which are roughly estimated
at billion dollars Assuming that
q Ford himself owned most OF this at
the time of death the government
III would step in and take almost halt OF
It, The repealers claim that this
would virtually wreck great indus
& try throw thousands out OF employ
men, or else lead the government IN
81 10 position as that OF a recelvership
IN the protection Of its interests
That the levying of inheritance tax
les should be left entirely to the states
81 based, fundamentally, OF course, on
The belief that federation in this field
y aggravates a situation Of veXatlon'
8 con;usion and chaos resulting from
The multiple and overlapping inherit
I dnce TAX claims OF various states.
Taxed by Three Jurisdictions.
In thirty-eight state ii resident
dles Ieaving stock in domestic cor
operation the shares are taxed by three
oIitercnt jurisdictions; namely, (ll the
s'ate OF domicile, ~ the state OF IN
corporation, and CD the federal gov
trnment.