Evening star., 1925-03-22
BY RICHARD y. HARVEY.

In his address before the Bankers
Secretary Mellon said I'VE approach a
fiscal year with an estimated surplus OF
1914, 100000" and tax reform is now an
issue which holds the public interest and
demands an early and honest attempt
at settlement"
To what phase of taxation can this
reform be better applied than to the
oppressive and outworn Federal tax
upon estates? To many estates the
assessment has, indeed, been a death
tax, causing dissolution of the hopes
of the eXpectant heirs.
Every one believes that some day
he may find a pot Of gold at the end
of his particular rainbow. And why
should not this bit of good fortune
take the form of a legacy from an
uncle in India or from some other
unlock ed-for source?
But in this instance the hopeful
citizen of the United States has not
allowed for the Inheritance tax. If
the Federal and State transfer taxes
combined amount to 100 per cent of
his gift, nothing Will be left except
ing the remembrance of a kind but
futile intention TO confer 81 benefit on
him.
However remote the hope of such
a gift may be, 1t does exist, and so to
each of us the imposition of heavy
death taxes has d personal interest,
for it may make that hope vain
thing.
Left still I'm Debt.
The assumption that the Govern
ment may take all Is not a mere fic-
ton or only a horrible possibility.
There are instances on record where
just this thing has occurred. When
the founder of the leading scale
works of Chicago executed his will
the property was large. In consid-
GRAFTON Of legacies approximating g
s2,000,00o to each of his two sons, he
required payment Of the estate tax
by them. In the end, when settling
his estate, the laws of two States and
Of the Federal Government assessed
the death tax at more than $4,000, 600.
leaving his sons still in debt after
their legacies had been entirely
wiped out.
In his address before the National
Tax Association at It's session at the
New Willard. February 10 and 90.
President Coolidge felt impelled to
deal with this important subject.
After stating the injustice of too
generous taking by the State and
Federal governments, Mr.. Coolidge
concludes: "All this means not only
an actual amount of tax which may
under particular circumstances exceed
100 per cent Of the value of the
stock, but the expense, delay and in
convenience of getting clearances of
the States who claimed a right to
tax the property is a serious burden
to the heir who is to receive the
stock"-in case where the estate con-
sists Of shares in a corporation.
Reform Held Vital.
The "clearances" referred to by the
President are the waivers by State
officials, releasing the shares and per-
hitting a transfer to be registered
on the books Of the company. Where
numerous States claim some taxable
interest in the estate, the expense Of
obtaining the necessary consents fire.
quently amount to nearly as much as
the tax itself-thereby constituting
in effect a double tax not intended
by the makers when fixing the
amount of the tax. The injustice of
this is apparent; and the mere men
ton Of 1t is enough to show the need
of a speedy and far-reaching reform
in estate-tax legislation and practice.
While the death tax IN some form,
State or Federal, has no doubt come