The Washington times., 1925-07-17
BANKERS FIGHT
INHERITANCE
TAXES
1nlustices in Present Statutes
on This Subject Are
Cited
BY RICHARD HATTON.


ment in regard to the question OF
q reduction of the surtaxes, there
is q very general sentiment among
financiers in Washington regarding
the injustice of the inheritance tax
as at present applied. Among the
same line of argument advanced
by many bankers here is a recent
report of the Chamber of Com
merce OF the United States in
which the statement is set forth
that not only do the existing laws
place a burden sometimes amount
ing to practical confiscatton On
estates, but there are innumeraoie
delays and anoyances, sometimes
years being required before an es-
tate can be closed.
'As Is well known" says the
Chamber of Commerce statement,
inheritance and estate taxation in
this country has become exceed
ingly complex and at times eX'
State laws. The States, like all
governmental units, are not in
clined to overlook possible sources
of revenue. There has grown up
among the States an unhealthy
competition relative to death taxes
for under the present confused
situation, there is always the pos
sibility that IL one State, because
Z Of public policy, refrains from tax
ing or taxes but lightly the sue
cessiop of property, another State
may levy and collect tax on the
same succession"
This, it is contended, is not only
obviously unfair but, also, "the
public policy which the first State
has attempted to put into opera
ton is largely or entirely frus-
trated and in addition the State
has lost revenue"
Revenue Main Object.
1t is farther stated that under
such conditions the psychological
attitude Of State legislatures and
administrators is very likely to be
to attempt to secure the maximum
revenues from death taxes without
much regard TO the effect produced
on the public welfare by such
taxes"
That the inheritance tax may APP
proarh confi-cqLion is seen in the
fact that various bases have been
some States using more than one.
The result IL that there il constant
overlapping and duplication Of tax
alton. Many instancen Of this kind
were pointed out by Washington
bankers today and, as stated by the
United States Chamber of Com
merce, 1.-The estate may consider
itself fortunate If it does not pay
death dues in more than one State
and not infrequently 1t pays taxes
In four or five different taxing
jurisdictions
1t is pointed out that only four
times in history has the United
States levied an inheritance tax and
Judging wholly from lie stInd-
point OF revenue returns. it is
doubtful whether the death taxes
levied by the United States Gov
eminent ever justified themselves"
Policy Of u. 8.
1t will be noted that at no time
prior to the world war did the
United States levy Death dues over
q period longer thai eight years.
The farther fact is noted that not
only has the present estate tax law
established a record for longevity,
but the taxes have been steadily
increased through revision and re.
comment that the 1924 act. which
materially increased the rate was
passed by Congress after the war
emergency, which caused the orig
Inal enactment Of an inheritance
] tax law had ceased. Moreover.
there was surplus in the Treasury
and predictions Of even a greater
accumulation.
The argument is made that the
Federal estate tax laws should be
repealed at once because eft is a
WeIl-known fact tina: a tax law once
placed on the statute books is diff
cult to remove: also. il the law re-
mains in operation over any con-
siderable period of time. it becomes
accepted as a permanent feature Of
the taxing system and it's removal
becomes correspondIngly difficult -
Ihe growing sentiment in favor
OF repeal Of the inheritance tax
law by the Federal Government has
been strengthened by recent state
ments regarding the financial con.
dition of the country and the nros.
poets for a continuation of a Treas
ury surplus which would appear
without the addition Of the inherit:
ance tax
Right of Succession.
Iouching upon the Right Of
Succession" the Chamber II Com.
merce declares in its memorandum:
I'm addition to the facts that the
Federal estate taxes have been re-
garded jas emergency taxes only
i. and that such taxes are in principle
not well adapted for emergency
purposes, 1t should also be noted
that death taxes are taxes levied
on the right of succession Under
our system Of government, this
right is entirely controlled ami
determined by the State Government
and not by the National Govern.
nlcnt. Under such conditions the
United States Government can have
no strong logical claim to tax this
right"
That multiple taxation results
from the present confused condition
Of the inheritance laws is the view
OF many Washington bankers who
are daily brought into contact with
cases of duplication and injustice,
and the general sentiment here j.
that the time is ripe for a general
consideration of the whole inherit.
ance tax situation, possibly, by both
tho Federal and the State authoc.
tiles.