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Editorial
May 5, 1931
The Milwaukee Leader
Milwaukee, Milwaukee County, Wisconsin
What is this article about?
Editorial advocates retaining reciprocity in inheritance tax law, allowing payment in appraised securities to prevent estate sacrifices, enabling state ownership in industries, and increasing taxes in higher brackets.
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Full Text
INHERITANCE TAXES
While the legislature is considering the inheritance tax—and we think it would do well to take the advice of the joint finance committee and let the reciprocity feature of the law stand—it might consider changing the law so that inheritance taxes could, if desired, be paid in securities, at their appraised value.
It happens sometimes that part of an estate has to be sacrificed in order to turn securities into cash so as to pay the inheritance tax. Naturally the buyers know that the securities have to be sacrificed, hence they do not offer as much as their value for them. If the securities could be valued by disinterested appraisers, and then turn the securities over to the state, in payment of the tax, this would prevent the sacrifice.
And it would accomplish something else—something far more important: it would give the state a part interest in the industries which issued the securities. If they were bonds, the state would only have a sort of mortgage on the industries, and it might want to dispose of them and turn them into cash. If they were stocks, the state would thereby achieve a voting interest in the industries; and, in time, it would acquire a controlling interest, if it kept the stocks, as it should.
In return for the favor of being permitted to pay inheritance taxes in securities, the interested parties should make no objection to an increase in such taxes, in the higher brackets. They should be increased anyhow, whether there is objection or not.
While the legislature is considering the inheritance tax—and we think it would do well to take the advice of the joint finance committee and let the reciprocity feature of the law stand—it might consider changing the law so that inheritance taxes could, if desired, be paid in securities, at their appraised value.
It happens sometimes that part of an estate has to be sacrificed in order to turn securities into cash so as to pay the inheritance tax. Naturally the buyers know that the securities have to be sacrificed, hence they do not offer as much as their value for them. If the securities could be valued by disinterested appraisers, and then turn the securities over to the state, in payment of the tax, this would prevent the sacrifice.
And it would accomplish something else—something far more important: it would give the state a part interest in the industries which issued the securities. If they were bonds, the state would only have a sort of mortgage on the industries, and it might want to dispose of them and turn them into cash. If they were stocks, the state would thereby achieve a voting interest in the industries; and, in time, it would acquire a controlling interest, if it kept the stocks, as it should.
In return for the favor of being permitted to pay inheritance taxes in securities, the interested parties should make no objection to an increase in such taxes, in the higher brackets. They should be increased anyhow, whether there is objection or not.
What sub-type of article is it?
Taxation
Economic Policy
What keywords are associated?
Inheritance Taxes
Securities Payment
Tax Reform
State Investment
Higher Brackets
What entities or persons were involved?
Legislature
Joint Finance Committee
State
Editorial Details
Primary Topic
Inheritance Tax Reform Allowing Payment In Securities
Stance / Tone
Supportive Of Allowing Securities Payment And Increasing Higher Bracket Taxes
Key Figures
Legislature
Joint Finance Committee
State
Key Arguments
Retain Reciprocity Feature Of Inheritance Tax Law
Allow Payment Of Inheritance Taxes In Securities At Appraised Value To Avoid Forced Sales
State Gains Interest In Industries Through Securities, Especially Voting Control Via Stocks
Increase Inheritance Taxes In Higher Brackets Regardless Of Objections