the other hand, as has often been done, that inheritances should be confiscated by the government altogether, shows a lack of appreciation of the value of a reasonable right to bequeath in encouraging larger families among those having a high standard of living. It is not desirable to penalize the kind of strains which possess directing talent and constructive efficiency; and they certainly would be penalized if a man felt that no matter how much he might increase his fortune, he could not leave any of it to those who continued his stock.
The sum exempted should not be large enough to tempt the beneficiary to give up work and settle down into a life of complacent idleness, but enough to be of decided assistance to him in bringing up a family: $50,000 might be a good maximum. Above this, the rate should advance rapidly, and should be progressive, not proportional. A 50% tax on inheritances above $250,000 seems to us desirable, since large inheritances tend to interfere with the correlation of wealth and social worth, which is so necessary from a eugenic point of view as well as from that of social justice.
The Federal estate law, passed in September, 1916, is a step in the right direction. It places the exemption at $50,000 net. The rate, however, is not rapid enough in its rise: e.g., estates exceeding $250,000 but less than $450,000 are taxed only 4%, while the maximum, for estates above $5,000,000, is only 10%. This, moreover, is on the total estate, while we favor the plan that taxes not the total amount bequeathed but the amount inherited by each individual. With the ever increasing need of revenue, it is certain that Congress will make a radical increase in progressive inheritance tax on large fortunes, which should be retained after