The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-06-26
WEDNESDAY. JUNE IS. 1913.
SPEED AND TAXES

-
~ have been enacted IN the United States
IN the last 90 years.
Tie average time between Introduction
and final passage has been three and one
hall months. That takes into no account the
time suen. by the House WAYS and Means
Committee 10 holding original hearings on
the measures
II IS nov proposed 20 Jam through in six
d7vs the most far-Tcaching tax measure Of
alto sdetracE all usual procedure 10 choke
or public discussion. and 70 limit public in
formation ore Of the Six allotted days has
already gone and the bill has not yet even
been published
u this were 90 be the best measure ever
ftrlcs on By the hand Of man. the method
Of l,s attempted passage would condemn it.
we d. not believe it should be 50 con-
demued. we believe that the general pur-
poses of the new tax legislation. as expressed
in tile Presidents message. are right. But
general purposes are one thing, and the
working out Of a highly complicated taxation
program. another. This is no job for Aladdin.
one thing for example. that can not be
E0lyed IN the amp-rlbbing manner Is the
collection Of inheritance taxes after they are
imposed
II fixing the inheritance rates were the
only question involved. that part Of the pro-
gram could be handled with a fair degree Of
speed i is comparatively simple 10 say that
q man who inhcuts a half-millOn dollars
should give a certain definite percentage Of
10 % the government that one who inherits
a million should give another and q larger
percentage. and so on up.
But collecting the taxes after they are
levied in terms Of dollars is not so simple.
Because al wealth is b. no means in dollars.
And that is one reason why Congress should
take ITS time in writing the law.
Senator James Couzcns Of Michigan. a
very rich nan who has long advocated very
high taxes on wealth. says The problem would
not be- difficult in his case. because my
money is in a form which would be readily
distrbutable"
But" he says. how about a big manu-
facturer Who owns his entire plant? Sup
pose he leaves his entire fortune to a son
and there is a high inheritance tax. How
would he get the money to pay the govern
ment2a
That is a problem which the government
must work ont. not only 10 be fair to the
inheritor Of the property. but also to insure
actual collection Of the tax which the gov
eminent itself has coming 10 il.
A property might be worth 10 million
dollars rs going concern. on forced sale
basis 70 raise cash TO pay taxes. 1t might be
worth less than the tax BILL
Shall the government. therefore, XIII the
goose that is TO lay the golden egg or shall
It devise a method BY which it can actually
set the egg2
proposal for taking payment in kind.
for example preferred stock in a company, is
one suggestion that has been made in this
highly complicated problem. Another is that
longtime extension OF payment from earn
ings Of the property be made in order to
assure that the government shall actually get
It's money.
The payment in kind suggestion also has
its complications. For while the government
might receive cash from the earnings Of an
Industrial property it has no desire 10 load
itself up with country estates or broVnstone
mansions where the-e are few If any cash
earnings possible.
This whole problem has long worried Fed
eraI fiscal experts. They have bumped into
70 administering the present estate taxes.
Higher inheritance taxation viii greatly in
crease the difficulties
We do not claim TO know the solution. But
We Go know that the solution can be ar
rived at Only b. careful. not hysterioal. law
making.