The Washington times., 1925-02-19
COOLIDGE RAPS
ESTATE TAX

CONTINUED from First Page)
Governments imposition in the
revenue act of 1924 Of an estate
tax, the highest bracket of which
was raised from 20 to 40 per cent,
the executive charged Congress
with having sought social legisla-
ton in the guise of taxation"
Calls States Grasping.
Turning to the States. Mr.. Cool
idge declared there existed com:
petition between States to reach
through the Inheritance tax every.
thing which by any constructions
can be brought within the grasp
of the tax gatherer.'
The overlapping of Federal and
State inheritance taxes, he said,
has resulted in a situation that
amounts to virtual confiScation-
wherein in many cases the total
taxes levied may even exceed the
total value of the estate.
The President reiterated the be-
lief he expressed last year when
he signed the revenue act that the
Government should withdraw from
this field of taxation. He pointed
out that In the past the Government
had sought revenue from estate
taxation only in the time OF war
emergency and that 1t always had
withdrawn when the emergency
ceased to exist
Referring to the action Of Con
gress in not only continuing but
actually increasing the rate on this
form Of taxation, the President said:
disguised Socialism"
eff, we are to adopt socialism, it
it should be presented to the people
of this country as socialism, and
not under the guise Of law to col
lect revenue. The people are quite
able to determine for themselves
the desirabililty of a particular
public policy and do not ask to
have such policies forced upon them
by indirection.
PERSONALLY, l do not feel that
large fortunes properly managed
are necessarily a menace to out
institutions and therefore ought to
be destroyed. On the contrary,
they have been and can be Of great
value to our development"
On the subject Of State avarice
in collecting taxes from heirs to
estates, whether large or small. Mr..
Coolidge showed how 1t was pos
sible for one certificate Of stock
to be taxed seven or eight times.
to an amount which, under par
ticular circumstances might exceed
100 per cent Of the value OF the
stock.
Further, to pay inheritance and
estate taxes in cash, he said. eX-
ecutors must submit to what
amounts to forced sales Of property
in many cases.
IT venture to say" he declared.
that for executors to pay a 40 per
cent tax they would have to realize
in cash, in the ordinary large estate,
probably go per cent Of the appraised
value of the estate"
Three Prime Dangers.
Three prime dangers were listed
by President Coolidge as the prob
able outcome of any long continu-
ance of the present order Of double,
and excessive taxation Of estates:
First, a tendency ito lower values
throughout the country by reason OF
forcing upon the market securities
which cannot readily be absorbed,
thus lowering the very level Of values
upon WHICH LIluOEIIdHCO cIIN CSI"SC
taxes are actually based.
Second, a removal Of "the in
spiration to work in order to build
up a>business or create a property"
Third, through continued Federa!
activity in this field, forcing OF
the States into making up their
losses from this source by higher
taxes in other fields.
On the third point, President
Coolidge said:
Already the taxes levied by the
State upon land are so high as to
menace the, prosperity OF the
farmer. For the sake Of the
revenue which the Federal Govern
ment receives lrom this source
being in the last fiscal year only
| $103, 000, 900 out of $4,000, 0O0, 900,
total internal revenue taxes for
that year-the Federal Government
should he careful to see that in.
| directly it is not taxing the very
persons whom 1t most wishes to
relieve"