The New Student's Reference Work/Inheritance-Tax

Inher′itance-Tax. This tax is imposed on those acquiring property by inheritance or will. It is often imposed simply for the revenue it brings in; for it is easy and cheap to collect, hard to evade and one of the least unpopular forms of taxation. In most countries some form of inheritance-tax exists, and in most of our states. A special form of the tax is called the collateral inheritance tax, which imposes a higher rate upon property that is willed to distant relatives or to strangers. The form of inheritance tax that is exciting special interest at this time is one that charges a higher rate on larger fortunes, and has for its purpose not revenue only, but the diminution of large inherited fortunes. The Australasian colonies seem to have led the way in imposing such graduated inheritance-taxes. England adopted it in 1894 as a means to meet her great expenses. Congress has imposed such a tax on three occasions: from 1797 to 1802; for eight years between 1862 and 1870; and from 1898 to 1902. In the earlier of these the rate was much less on very small fortunes.