Evening star., 1935-08-20
TAX X1WR0NCS' SEEN.
IN ROGERS ESTATE.
Under Pending Law U. S.
Could Take S1,662,660
of S3,O00,0 900 Fortune.
BY DAVID LAWRENCE.

Is distributed by the demagogues who
think it's popular, they never make
mention Of the self-made man OF the
VIII Rogers type, who works faithfully
through his life and saves money for
his family, only to have the tax col
1ector not only take a large share, but
actually threaten the assets Of his
estate by insisting on forced sales that
mean diminished receipts when the
properties are liquidated.
Estate Valued at S3,00O,0o0.
The press dispatches from Los
Angeles say that Will Rogers has left
an estate conservatively figured at
about s3,ooo,000 and that. of this sum,
Sl,o5o0O0 was in life insurance. 1t
Is added that his California real estate
and his ranch are valued at ST. 600. 900.
Now let us see what would have
happened to the Rogers estate if the
bill passed by the House of Repre-
sentatives recently had become law.
There's an exemption on the first
S50,000 Of an estate, but the Federal
estate tax today would amount to
about 1881 600 and the inheritance
tax would have added another s79l $50.
This means that the Rogers family
would have owed the Federal Govern
ment about 81 ,662, $50.
But that isn't the only aspect
which would have caused dismay to
the millions of American citizens,
who feel that Will Rogers enter
tanned them, gave them value, and
that his family was entitled to the
savings he had accumulated.
Property Must Be Sacrificed.
Rarely does an estate have $1,662,-
$50 in cash lying around idle. Usually
it's invested in securities or else in
real estate. The Government insists
on cash, so the properties have to
be sold as soon as possible. This
means that the real estate might
have to be sacrificed and perhaps
sold for much less than the value if
the property could be held for
favorable price. There have been in
stances, to be sure, where the real
estate, when sold. brought so little,
because it had to be sold quickly,
that the cash remaining in the estate
was barely large enough to cover the
taxes and left little if anything to
the heirs
1t is understood that Will Rogers
made his life insurance payable to
his wife in what is known as an
'rrevocable trust" that Is, he sur
rendered long ago all rights to change
the beneficiary. But the House bill
specifically said that even irrevocable
trusts were subject to inheritance
taxes. 1t is doubtful whether the
Supreme Court of the United States
would uphold that kind Of conf1sca-
tion under the heading Of inheritance
taxes, but, until the matter was ad-
Indicated, it is probable that the life
insurance company might feel that it
was compelled to hold the funds in
trust to await the legal settlement Of
legal questions.
1t is true the House bill had a pro-
vision to allow 10 years to dispose of
an estate, but then the executors
would have to guarantee the Govern
nlent against loss Of the assets in the
meantime, and no executor or trust
company would take such risk Also,
interest payments run during the 10
years. This adds to the expense to
the estate.
Provisions Under Senate Bill.
Under the Senate bill, the Rogers
estate, If distributed to one member
Of the family, would have had to pay
a tax of S952 900 and the real estate
would have had to be sold as quickly
as possible to raise the tax or the
heirs would have had to borrow the
money and pay interest thereon.
}, Does anybody begrudge the Rogers
family the earnings of the famous
comedian and humorist? Does it seem
possible that even under present law
nearly 100000 will be taken out of
the estate and the remainder of the
estate subjected to hazards of shrink
age and loss just because the Federal
tax collector must have his portion?
All Glasses Suffer.
Le average uldL uldy tIllIlk IIldI
the inheritance and estate taxes are
aimed only at Wall Street millionaires
and spectators. But all kinds of per-
sons, many Of whom have given the
people of the United States in value
many times what they earned. are
affected by the rigid laws just the
same. Henry Ford made the low
priced automobile possible. He helped
to create an industry which not only
buys steel but cotton and lumber and
rubber and many accessories. He has
created tens Of billions Of dollars Of
work throughout his lifetime, Just as
Will Rogers created fun that could
not be measured in billions and hap
piness that made the lives of people,
young and old, rich and poor, brighter
from time to time.
1t little occurred to the demagogues
In Congress, perhaps. that their soak
the-rich program might have had
soak-the-R Rogers result. Fate deprived
the tax collector of much Of his toll,
but even $500 900 seems a lot of money
to take away in taxes from the family
OF man whose genius earned it many
times over.
(Copyrieht 1Q35A