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The Inheritance Tax. Krilturs Iudiana Farmer: No pleasure will be presented to the Indiana Legislature at its ensuing session which will In- nf greater significance tn the farmers tban the bills relating to taxation. Xo one conversant -with thc facts will deny that the farmers bear mora than their fare share nf the hardens of taxation. Whatever legislation may be pro- ihe transmission ol property! and la protecting it while the transfer is being effected: (5) Tbe State may regard the tax as . an equivalent of the taxes nn pru|ierty which the decedent evaded during his life time; (Hi Tbe inheritance tax may he considered as ■ tax upon an income paid once la ■ life time; (7; ESacb citizen should contribute towards the upport uf the government in proportion dues nut disturb industry or liusiness. It dues nut check consumption or production of goods, nor discourage Saving ami investment. It enaliles the State to reach much Intangible property, which would otherwise escape taxation, especially if it piSSOfl to aliens. This tax has been tried in other Aineri- eau States and in Kurupe anil has proved a success Of the thirty seven States the transmission of both real and personal property. Tin- recant tendency has been to make it apply to direct as well as collateral heirs and to both real and personal property. In the matter of exemption the tendency has been to reduce tin- amount exempted, even to zero in the ease of some collateral heirs. In twenty nine States the amount is fixed irrespective of the size of the in- The Champion Car load of Steers, International. 1006. Fed by Funk Bros., HI nington, III., sold by Clay, Robinson & Co., Chlcsgo for $17.00 per cwt. posed which would have the effect of alleviating that burden should, therefore, have the hearty support of all persons and organizations interested in- agriculture. I desire in this communication to call attention to the inheritance tax as a means of reducing to a slight extent at least this load of taxation. An inheritance tax is one imposed upon the transfer of property by will, or by the interstate laws of thc State from any person dying possessed of the same. Such a tax has been justified in the following ways: (1) The inheritance tax is merely an extension of thc right of escheat for the purpose of limiting inheritances in the interest of the public welfare: (2) It tends to diffuse wealth in the interest of the whole State: (3) In the accumulation of wealth the State is a silent partner, and when that partnership is dissolved by death the State is entitled to a share of the assets; (4) The state may claim reimbursement for tlle expenditure it incurs and the benefits it confers in regulating to his ability and tin- tax-paying ability of the heir or legatee has been suddenly in- * rea sed by this accidental or gratuitous acquistfon of property. Hence a speeial contribution may be demanded from him. The objection that the tax-paying ability of a family may be in some Instances de creased by the death of the head of the family may bc nut by allowing an ample exemption in favor of the widow and minor heirs, and by making the rate of taxation lower than in other - uses. These various arguments will have different <le- of weight with different Individuals according to their views and temperaments. Space will not permit a fuller discussion of these theoretic bases of the tax. On the practical side the inheritance tax has many merits to commend it. It can be administered with little expense and without friction. It is iinpussil le for the person who pays the tax to shift the burden upon the laborer, tin- consumers of commodities, or the land owner. It lying between the Atlantic ocean and the Pacific -.eean north of the (lull* Stales, but nine (.including Indiana) arc without an Inheritance tax of some kind. In 1003 this tax yielded in Massachusetts $506,- 000; in Connecticut, $250,000; in New Y.irk. (4,005,000; in Pennsylvania, $1.- 300,000; in Illinois $519,000; in Iowa. 1235,000, and in California, $287,000. In France the Income from the Inheritance tax contributes more than six per cent of the total revenue of the State; in (Jreat Britain about ten per cent. In Indiana aftcr the tax has been well established it ought to yield five or six per cent of • -nr total revenue for State purposes. Thirty American States use an inheritance tax in some form. All of these -■■ the tax upon collateral heirs—one up-ill the transmission of personal property only, and twenty-nine upon the transmission of both real and personal properly. Fifteen of them also impose the tax upon direct heirs: three upon the transmission ol personal property only, and 12 upon kerltance; iu one State the amount de- . leases as thc Inheritance increases. In thc case of collateral heirs the exemption most frequently granted is $500, altho it ranges from zero to $25,000. In the ease of direct heirs the exemption most frequently admitted is $10,000, altho it has a range from .$2,000 to $20,000. 11 also seems to be the tendency to place the tax upon the separate shares, less the exemption and not upon the estate as a whole. In regard to the rates of taxation the tendency is towards an increase and also towards lhe application of the progressive principle instead of tlie proportional principle. The progression takes two directions, i. c, the rate increases as the amount of the inheritance increases, and also as the relationship between the heir and the decedant grows more distant. In Ihe case of collateral heirs twenty-two States have proportional rates and eight have progressive rates; in the case of ilir- l ect heirs fourteen have proportional rates I
Object Description
Title | Indiana farmer, 1906, v. 61, no. 52 (Dec. 29) |
Purdue Identification Number | INFA6152 |
Date of Original | 1906 |
Subjects (LCSH) |
Agriculture Farm management Horticulture Agricultural machinery |
Subjects (NALT) |
agriculture farm management horticulture agricultural machinery and equipment |
Genre | Periodical |
Call Number of Original | 630.5 In2 |
Location of Original | Hicks Repository |
Coverage | United States - Indiana |
Type | text |
Format | JP2 |
Language | eng |
Collection Title | Indiana Farmer |
Rights Statement | Content in the Indiana Farmer Collection is in the public domain (published before 1923) or lacks a known copyright holder. Digital images in the collection may be used for educational, non-commercial, or not-for-profit purposes. |
Repository | Purdue University Libraries |
Date Digitized | 2011-02-14 |
Digitization Information | Original scanned at 300 ppi on a Bookeye 3 scanner using internal software. Display images generated in CONTENTdm as JP2000s; file format for archival copy is uncompressed TIF format. |
Description
Title | Page 1 |
Subjects (LCSH) |
Agriculture Farm management Horticulture Agricultural machinery |
Subjects (NALT) |
agriculture farm management horticulture agricultural machinery and equipment |
Genre | Periodical |
Call Number of Original | 630.5 In2 |
Location of Original | Hicks Repository |
Coverage | Indiana |
Type | text |
Format | JP2 |
Language | eng |
Collection Title | Indiana Farmer |
Rights Statement | Content in the Indiana Farmer Collection is in the public domain (published before 1923) or lacks a known copyright holder. Digital images in the collection may be used for educational, non-commercial, or non-for-profit purposes. |
Repository | Purdue University Libraries |
Digitization Information | Orignal scanned at 300 ppi on a Bookeye 3 scanner using internal software. Display images generated in CONTENTdm as JP2000s; file format for archival copy is uncompressed TIF format. |
Transcript |
The Inheritance Tax.
Krilturs Iudiana Farmer:
No pleasure will be presented to the
Indiana Legislature at its ensuing session
which will In- nf greater significance tn
the farmers tban the bills relating to taxation. Xo one conversant -with thc facts
will deny that the farmers bear mora than
their fare share nf the hardens of taxation. Whatever legislation may be pro-
ihe transmission ol property! and la protecting it while the transfer is being effected: (5) Tbe State may regard the
tax as . an equivalent of the
taxes nn pru|ierty which the decedent evaded during his life time; (Hi Tbe inheritance tax may he considered as ■ tax upon
an income paid once la ■ life time; (7;
ESacb citizen should contribute towards the
upport uf the government in proportion
dues nut disturb industry or liusiness. It
dues nut check consumption or production
of goods, nor discourage Saving ami investment. It enaliles the State to reach
much Intangible property, which would
otherwise escape taxation, especially if it
piSSOfl to aliens.
This tax has been tried in other Aineri-
eau States and in Kurupe anil has proved
a success Of the thirty seven States
the transmission of both real and personal
property. Tin- recant tendency has
been to make it apply to direct as well as
collateral heirs and to both real and personal property.
In the matter of exemption the tendency
has been to reduce tin- amount exempted,
even to zero in the ease of some collateral
heirs. In twenty nine States the amount
is fixed irrespective of the size of the in-
The Champion Car load of Steers, International. 1006. Fed by Funk Bros., HI nington, III., sold by Clay, Robinson & Co., Chlcsgo for $17.00 per cwt.
posed which would have the effect of alleviating that burden should, therefore,
have the hearty support of all persons and
organizations interested in- agriculture. I
desire in this communication to call attention to the inheritance tax as a means of
reducing to a slight extent at least this
load of taxation.
An inheritance tax is one imposed upon
the transfer of property by will, or by the
interstate laws of thc State from any
person dying possessed of the same. Such
a tax has been justified in the following
ways: (1) The inheritance tax is merely an extension of thc right of escheat for
the purpose of limiting inheritances in the
interest of the public welfare: (2) It tends
to diffuse wealth in the interest of the
whole State: (3) In the accumulation of
wealth the State is a silent partner, and
when that partnership is dissolved by
death the State is entitled to a share of
the assets; (4) The state may claim reimbursement for tlle expenditure it incurs
and the benefits it confers in regulating
to his ability and tin- tax-paying ability
of the heir or legatee has been suddenly in-
* rea sed by this accidental or gratuitous
acquistfon of property. Hence a speeial
contribution may be demanded from him.
The objection that the tax-paying ability
of a family may be in some Instances de
creased by the death of the head of the
family may bc nut by allowing an ample
exemption in favor of the widow and
minor heirs, and by making the rate of
taxation lower than in other - uses. These
various arguments will have different |
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