The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1932-03-23
HUGE ESTATES
MADE TARGET
IN TAX DRIVE
Foes Of Sales Levy Widen
Scope of Fight; Shift
Burden on Rich.
Continued From Page u

Democrats has widened its scope TO
shift the burden Of taxation upon
the rich, and II its efforts eventual
~ become law, partial redistribution
Of wealth will have been realized.
Still confident of beating the sales
tax-although its advocates SINH
larly are confident-the coalition
today counted four victories, as it
prepared for the fifth and crucial
engagement. These we're:
Increasing inheritance, or estate,
taxes along the lines Of the British
system, so that a maximum of 65
per cent is attained on estates in
excess Of s10000,000.
Striking out Of the credit for for
eign taxes paid by corporations.
Increasing the surfaces on the
large incomes up to IS per cent,
practically the wartime rates.
Increasing the ordinary tax rate
applying to incomes in excess of
$4,000.
All Substitutes
These, all intended as substitutes
for the sales tax, may yield more
than s500000,000 year, although
the new estate taxes will not, of
course, produce much revenue for
eighteen months or two years.
The estate tax victory came Tues
Gay and preceded the agreement to
postpone the sales tax showdown.
After years of effort and study,
Representative Rannseyer CRep., la
succeeded in having his inheritance
super-tax schedule adopted, 100 to
149, as a substitute for the proposal
OF the ways and means committee.
Ramseyer now apparently intends
to rally sentiment about his plan to
strike from the administrative fea-
lures of the estate tax that provi-
sion which grants special leniency to
persons who died between Sept. !,
1923, and Jan. l, 1882.
This provision would permit re-
valuation of estates of persons who
died in the recent prosperous period
as of date eighteen months after
death, and thus cause the govern
ment to lose many millions in taxes.
Exceed Estate Value
Advocates of this provision con-
tend that unless this devaluation
is allowed, the estate taxes will be
more than confiscatory, since in
many instances, they claim, taxes
due will exceed the value of the es-
tate under present Debated prices.
The white-haired Iowan asserted
that his inheritance tax schedule
neither is radical nor confiscatory. /
Within two or three years, he be-
heves it will yield from $500,000,O0O
to S600,000000 annually.
Taxation" Ramsyer declared, 'is
for two purposes: First, to raise
revenue; second, to prevent the too
great accumulation of wealth in the
hands of those who have not earned
it. 1 consider my estate tax sched-
ule q step in the right direction"
I'm order to make the rates pro-
ductive," he said, I'VE have got to
start the increase sooner than we
do under existing law. Starting
with an exemption of $4,000, on
the first $4,000 the rate proposed is
/ per cent. Then I graduate the
rates up so that on a net estate of
100000 we would collect $4,000.
Not Too Much
Now that is not great deal Of
money off of net estate of $780,
600. The rates go on up until we
get to that portion of the estate
over 100000, where the rate is
As per cent"
The Ramseyer inheritance tax, like
the committees proposed tax, &C
tually is a super-tax, in addition to
that imposed by the existing law.
Out Of the tax levied under the ex-
listing law the estate is granted up
to 80 per cent of credit for payment
of inheritance taxes to states. The
money to be raised by the Ramseyer
amendment, however, all goes to the
federal treasury.
Thus, while the maximum rate of
the RamSeyer amendment is As per
cent the actual maximum rate is 65
per cent, the additional 20 per cent
being fixed in the existing law.
The sales tax came up by special
arrangement after the estate tax,
and Acting Chairman Crisp of the
ways and means committee offered
committee amendments to exempt
food clothing, farm implements,
medicines insecticides and sprays,
and malt syrup used in bread max
ing, from the proposed 2.25 per cent