[PREVIOUS]
 
         1. Rate structure
  Individual          Cumulative      September    March    October
   brackets       value of brackets    8, 1916      3,      4, 1917
(000 omitted)       (000 omitted)                  1917

First      $10             $10            1%         1.5%      2%
Next        10              20            1          1.5       2
Next        10              30            1          1.5       2
Next        10              40            1          1.5       2
Next        10              50            1          1.5       2
Next        20              70            2          3         4
Next        30             100            2          3         4
Next       100             200          2 - 3      3 - 4.5   4 - 6
Next       200             400          3 - 4    4.5 - 6     6 - 8
Next       200             600          4 - 5      6 - 7.5   8 - 10
Next       200             800            5        7.5        10
Next       200           1,000            5        7.5        10
Next       500           1,500            6          9        12
Next       500           2,000            6          9        12
Next       500           2,500            7         10.5      14
Next       500           3,000            7         10.5      14
Next       500           3,500            8         12        16
Next       500           4,000            8         12        16
Next       500           4,500            9         13.5      18
Next       500           5,000            9         13.5      18
Next     1,000           6,000           10         15        20
Next     1,000           7,000           10         15        20
Next     1,000           8,000           10         15        20
Next     1,000           9,000           10         15        22
Next     1,000          10,000           10         15        22
Next    10,000          20,000           10         15        25
Next    30,000          50,000           10         15        25
Over    50,000                           10         15        25

2. Exemptions                         $50,000    $50,000    $50,000

         1. Rate structure
  Individual          Cumulative      February     June    February
   brackets       value of brackets   24, 1919      2,     26, 1926
(000 omitted)       (000 omitted)                  1924
                                                   /1/

First      $10             $10            1%         1%       1%
Next        10              20            1          1        1
Next        10              30            1          1        1
Next        10              40            1          1        1
Next        10              50            1          1        1
Next        20              70            2          2        2
Next        30             100            2          2        2
Next       100             200          2 - 3      3 - 4      3
Next       200             400          3 - 4      4 - 6      4
Next       200             600          4 - 6      6 - 9      5
Next       200             800          6 - 8      9 - 12     6
Next       200           1,000            8         12        7
Next       500           1,500           10         15        8
Next       500           2,000           12         18        9
Next       500           2,500           14         21       10
Next       500           3,000           14         21       11
Next       500           3,500           16         24       12
Next       500           4,000           16         24       13
Next       500           4,500           18         27       14
Next       500           5,000           18         27       14
Next     1,000           6,000           20         30       15
Next     1,000           7,000           20         30       16
Next     1,000           8,000           20         30       17
Next     1,000           9,000           22         35       18
Next     1,000          10,000           22         35       19
Next    10,000          20,000           25         40       20
Next    30,000          50,000           25         40       20
Over    50,000                           25         40       20

2. Exemptions                         $50,000    $50,000   $100,000

         1. Rate structure
  Individual          Cumulative      June 6,    May 11,    August
   brackets       value of brackets    1932       1934     31, 1926
(000 omitted)       (000 omitted)

First      $10             $10           1%         1%         2%
Next        10              20           2          2          4
Next        10              30           3          3          6
Next        10              40           4          4          8
Next        10              50           5          5         10
Next        20              70           7          7         12
Next        30             100           7          9         14
Next       100             200           9         12         17
Next       200             400          11         16         20
Next       200             600          13         19         23
Next       200             800          15         22         26
Next       200           1,000          17         25         29
Next       500           1,500          19         28         32
Next       500           2,000          21         31         35
Next       500           2,500          23         34         38
Next       500           3,000          25         37         41
Next       500           3,500          27         40         44
Next       500           4,000          29         43         47
Next       500           4,500          31         46         50
Next       500           5,000          33         48         53
Next     1,000           6,000          35         50         56
Next     1,000           7,000          37         52         59
Next     1,000           8,000          39         54         61
Next     1,000           9,000          41         56         63
Next     1,000          10,000          43         58         65
Next    10,000          20,000          45         60         67
Next    30,000          50,000          45         60         69
Over    50,000                          45         60         70

2. Exemptions                         $50,000   $50,000    $40,000

                          FOOTNOTE TO TABLE

     /1/ These rates were retroactively reduced by Revenue Act of
1926 to the level of 1919 rates.

                           END OF FOOTNOTE

     Sources: Statistics of Income for 1934; Revenue Act of 1935.

Table 2 Federal and State death and gift tax collections, 1915-1938

(In thousands of dollars)



                               Federal                      State
                              Percent of                 Percent of
             Collections     total taxes   Collections    total tax
                             and customs                   revenue

1915                 -             -          28,784         7.9
1916                 -             -          30,748         8.4
1917             6,077           0.6          40,038         9.8
1918            47,453           1.2          41,432         9.0
1919            82,030           2.0          47,889         9.0

1920           103,636           1.8          64,647         9.2
1921           154,043           3.1          65,703         9.0
1922           133,419           3.9          70,503         8.2
1923           126,705           4.0          75,193         8.2
1924           102,967           3.1          83,697         8.2

1925           108,940 /*/       3.5          91,171         8.2
1926           119,216 /*/       3.5          96,052         7.6
1927           100,340           2.9         112,191         8.3
1928            60,087           1.8         132,599         8.8
1929            61,897           1.7         148,592         9.2

1930            64,770           1.8         180,794        10.1
1931            48,078           1.7         182,653        10.3
1932            47,422           2.5         143,746         8.8
1933            34,310           1.8         126,359         8.4
1934           113,138           3.8          92,240         5.3

1935           212,112           5.8         100,783
1936           378,840           9.7
1937 (est)     273,900           5.5
1938 (est)     383,200           5.7

                            Federal
                  Estate Tax        Gift Tax

1933                29,693             4,617
1934               103,985             9,153
1935               140,441            71,671
1936               218,781           160,059
1937 (est.)        249,000            24,900
1938 (est)         358,200            25,000

                          FOOTNOTE TO TABLE

     /*/ Includes gift tax collections amounting to $7,518,000 in
1925 and $3,175,000 in 1926.

                           END OF FOOTNOTE

     Sources: (Secretary of the Treasury, ANNUAL REPORT, 1936; Joint
Committee on Internal Revenue Taxation, FEDERAL AND STATE DEATH
TAXES, 1933; Dpt. of Commerce, FINANCIAL STATISTICS OF STATES, 1931;
National Industrial Conference Board, COST OF GOVERNMENT IN THE
UNITED STATES, 1936; Treasury Dpt., COLLECTIONS FROM SELECTED
STATE-IMPOSED TAXES, 1936.

Table 3 The Federal estate tax: Summary data showing number of taxable returns, gross and net estate, and tax liability

(Amounts in thousands of dollars)


 Year                    Taxable returns
  of
filing        Number    Gross estate    Net estate

 1925         10,642      2,689,972      1,621,008
 1926         10,470      3,150,664      1,951,969
 1927          6,961      2,850,985      1,735,840
 1928          6,116      3,181,719      1,943,429
 1929          6,758      3,566,208      2,268,323
 1930          7,028      3,808,324      2,376,973
 1931          6,364      3,717,069      2,327,319
 1932          5,104      2,447,095      1,391,569
 1933          6,464      1,751,870        798,246
 1934          7,981      2,025,412        882,712
 1935          8,655      2,197,941      1,027,774

 Year               Total tax before credit
  of                        Under         Under 1932
filing        Total        1926 Act      Act as amended

 1925         96,930
 1926        198,057
 1927        100,532         82,906
 1928        135,014        134,769
 1929        165,414        165,335
 1930        152,391        152,391
 1931        182,202        182,202
 1932         84,006         84,006
 1933         87,725         36,471          51,254
 1934        129,150         43,693          85,457
 1935        197,672         56,281         141,391

 Year                Total tax before credit
  of                         Under         Under 1932
filing         Total        1926 Act      Act as amended

 1925         86,223
 1926        101,324
 1927         40,931         27,344
 1928         40,561         40,351
 1929         43,303         43,232
 1930         39,003         39,003
 1931         44,540         44,540
 1932         22,364         22,364
 1933         59,429          8,175          51,254
 1934         95,228          9,771          85,457
 1935        153,753         12,363         141,391

     Source: United States Treasury Department, Statistics of
Income, 1924-1934.

Table 4 Specific exemptions afforded by State death taxes /1/

(as of February 1, 1937)


     $75,000 and over                      $50-000 - $75,000

Alabama            $100,000          Illinois               $60,000
Florida              10,000          Iowa                    70,000
Georgia             100,000 /*/      Mississippi             50,000
New Hampshire           all /*/
Rhode Island         75,000
Texas                75,000

      $25,000 - $50,000                     Less than $25,000

California             $41,000       Arizona                $14,000
Colorado                40,000       Arkansas                12,000
Delaware                26,000       Connecticut             10,000
Kentucky /2/            25,000       Idaho                   24,000
Maine                   30,000       Indiana                 22,000
Massachusetts /3/       30,000       Louisiana               15,000
Michigan                40,000       Maryland /3/               100
Minnesota               30,000       Montana                 21,500
Missouri                30,000       New Jersey              15,000
Nebraska                30,000       New Mexico              10,000
New York                30,000       North Carolina          17,000
North Dakota            27,000       Ohio                    13,500
South Dakota            30,000       Oklahoma                15,000
Vermont                 30,000       Oregon                  10,000
Washington              30,000       Pennsylvania               500
West Virginia /2/       25,000       South Carolina          22,500
Wyoming                 30,000       Tennessee               10,000
                                     Utah                    10,000
                                     Virginia                15,000
                                     Wisconsin               19,000

     Those exemptions are in fact reduce to $100,000 through the
operation of the differential estate tax designed to absorb the 80
percent credit for taxes paid to States provided by the 1926 Federal
Estate Tax.

                         FOOTNOTES TO TABLE

     /1/ It is assumed that there are three beneficiaries, a wife, a
minor child, and an adult child.

     /2/ Vanishing exemption.

     /3/ Conditional exemption.

                          END OF FOOTNOTES

     Source: Compiled on the basis of State statutes.

Table 5 Death tax exemptions in foreign countries /1/


                                                        Amount of
      Country                Type of tax              exemption /2/

Canada
   Alberta                   Succession duty             $ 1,000
   British Columbia          Succession duty              20,000
   Manitoba                  Succession duty              25,000
   New Brunswick             Estate and
                             succession duty              25,000
   Newfoundland              Estate duty                   1,000
   Nova Scotia               Succession duty              25,000
   Ontario                   Succession duty              25,000
   Prince Edward Island      Succession duty               5,000
   Quebec                    Succession duty              15,000
   Saskatchewan              Succession duty              15,000
   Yukon                     Succession duty              10,000

Germany                      Inheritance tax              12,000

Australia                    Estate duty                   4,000
Norway                       Inheritance tax               1,233
Great Britain                Estate duty                     487
Austria                      Estate duty                     468
Denmark                      Inheritance tax                 438
Italy                        Succession duty                 158

France                       Inheritance tax                None
Finland                      Inheritance tax                None
Netherlands                  Inheritance tax                None
Sweden                       Inheritance tax                 All
Spain                        Inheritance tax                 All
South Africa                 Estate duty                     All

      Country              Type of exemption

Canada
   Alberta                   Conditional
   British Columbia          Continuous
   Manitoba                  Conditional
   New Brunswick             Conditional
   Newfoundland              Conditional
   Nova Scotia               Conditional
   Ontario                   Conditional
   Prince Edward Island      Continuous
   Quebec                    Continuous
   Saskatchewan              Conditional
   Yukon                     Conditional

Germany                      Complete exemption in case children
                               are living or have died in action
                               during the World War or for National
                               Socialist Cause

Australia                    Continuous
Norway                       Continuous
Great Britain                Conditional
Austria                      Continuous
Denmark                      Continuous
Italy                        Complete exemption in case two or more
                               children are living

France                       -
Finland                      -
Netherlands                  -
Sweden                       -
Spain                        -
South Africa                 -

                         FOOTNOTES TO TABLE

     /1/ In case of inheritance taxes, it is assumed that the entire
estate passes to the spouse.

     /2/ Converted at current rate of exchange.

                          END OF FOOTNOTES

     Sources: Data for Canada compiled on the basis of CCH,
INHERITANCE, ESTATE AND GIFT TAX SERVICE. 1937: Data for other
countries compiled from foreign statutes, year books, commission
reports and CCH, TAX SYSTEMS OF THE WORLD, 1936.

Table 6 State death taxes: Method of taking exemptions

(As of February 1, 1937)


1. States in which continuous exemptions are deducted from the first
bracket:

Arizona          Louisiana       Ohio                Texas
California       Michigan        Oregon              Utah
Connecticut      Minnesota       Rhode Island        Vermont
Delaware         Montana         South Dakota        Virginia
Indiana          New Jersey      Tennessee           Wisconsin
                 New York

2. States in which continuous exemptions are deducted from the last
bracket:

Alabama          Idaho           Mississippi         North Dakota
Arkansas         Illinois        Missouri            Oklahoma
Colorado         Iowa            Nebraska            South Carolina
Florida          Kansas          New Mexico          Washington
Georgia          Maine           North Carolina      Wyoming

3. States which employ vanishing exemptions:

                        Kentucky
                        West Virginia

4. States which employ conditional exemptions:

                        Maryland
                        Massachusetts

5. New Hampshire allows full exemption to Class I beneficiaries but
no exemption to Class II beneficiaries.

     Pennsylvania allows partial exemption to widow or children and
taxes the balance at a flat rate.

     Source: Compiled on the basis of State statutes.

Table 7 Estate tax returns: Value of deductions on account of insurance

1931-1935 (Net estate classes and amounts in thousand of dollars)


Net estate classes:                       Year of filing
                                   1931          1932          1933

Not taxable under 1926 Act          --            --        $11,094
but taxable under subsequent
acts

Under $50                          $9,601       $8,378        8,127
50 - 100                            5,828        5,694        4,508
100 - 200                           6,764        6,267        5,163
200 - 400                           6,763        5,563        3,994
400 - 600                           3,101        2,493        1,937
600 - 800                           1,716        1,613          718
800 - 1,000                         1,819          802          722
1,000 - 1,500                       1,813          890          599
1,500 - 2,000                         767          377          252
2,000 - 2,500                         333           66           82
2,500 - 3,000                         439          250           80
3,000 - 3,500                         303          131           29
4,000 - 5,000                         161          160            -
5,000 - 6,000                         101           25            7
6,000 - 7,000                          93           71            -
7,000 - 8,000                          80            -           40
8,000 - 9,000                          40           43            -
9,000 - 10,000                          -            -            -
10,000 and over                       182           40            -

Total                              40,065       32,937       37,352

Net estate classes:                Year of filing         Ratio of
                                 1934      1935   Total   insurance
                                                          exemption
                                                          to gross
                                                          estate 1/

Not taxable under 1926 Act    $17,537     $18,017   46,648    4.52%
but taxable under subsequent
acts

Under $50                       8,334       8,022   42,462     3.11
50 - 100                        4,255       4,804   25,089     2.72
100 - 200                       5,377       5,380   28,951     2.25
200 - 400                       3,709       4,724   24,753     1.64
400 - 600                       1,694       2,082   11,307     1.24
600 - 800                       1,054       1,156    6,257      .97
800 - 1,000                       416         638    4,397      .89
1,000 - 1,500                     637       1,117    5,056      .62
1,500 - 2,000                     248         387    2,031      .41
2,000 - 2,500                     100         275      856      .23
2,500 - 3,000                     120          41      930      .37
3,000 - 3,500                      71          48      582      .29
3,500 - 4,000                     101         117      453      .21
4,000 - 5,000                      60          -       381      .16
5,000 - 6,000                      -           40      173      .08
6,000 - 7,000                      -           -       164      .10
7,000 - 8,000                      32          37      189      .16
8,000 - 9,000                       -          -        83      .07
9,000 - 10,000                      -          -
10,000 and over                     -          24      247      .03

Total                           43,745     46,910  201,009     1.66

                          FOOTNOTE TO TABLE

     /1/ For statistics on gross estates see Table 3. Source:
Statistics of Income, 1930-1934.

                           END OF FOOTNOTE

Table 8 Estate tax returns: Value of deduction on account of charitable, public and similar bequests

1931 - 1935 (Net estate classes and amounts in thousands of dollars)


Net                              Year of filing
estate
classes              1931        1932           1933        1934

Not taxable under   . . . .     . . . .        $9,862       $12,960
1926 Act but
taxable under
subsequent acts

Under $50           $13,863     $215,377       7,283          6,689
                      7,285       6,462        5,841          5,285
100 - 200            18,072      10,420        6,094          9,157
                     28,745      20,303        7,046          7,751
400 - 600            32,116      26,402        5,361          7,820
600 - 800             8,078       8,299        4,249          6,472
800 - 1,000          21,548       8,021       16,708            633
1,000 - 1,500         7,682      10,944        3,392          8,135
1,500 - 2,000         8,446       1,278        1,565         14,887
2,000 - 2,500         3,068      15,885        3,429         15,367
2,500 - 3,000         9,936         552          560          1,677
3,000 - 3,500         1,419         262        1,406          8,074
3,500 - 4,000         1,517       1,487          365          9,423
4,000 - 5,000         6,802         375        2,299            540
5,000 - 6,000           470         458          280              -
6,000 - 7,000           169      10,510          388              -
7,000 - 8,000         2,728       2,276           -          12,977
8,000 - 9,000            85       5,148          125              -
9,000 - 10,000            -         200           -               -
10,000 and over      11,326      1,804           -              95
Total
                     183,355    146,443       76,253        127,942

                           1935         Total        Ratio of
                                                     charitable
                                                     gifts to gross
                                                     estate 1/

Not taxable under         $16,825        $39,647         3.84%
1926 Act but
taxable under
subsequent acts

Under $50                   4,983         48,195          3.53
50 - 100                    4,141         29,014          3.15
100 - 200                  17,165         60,908          4.74
200 - 400                  12,328         76,173          5.06
400 - 600                   4,097         75,796          8.28
600 - 800                   8,601         35,699          5.54
800 - 1,000                 1,468         48,378          9.84
1,000 - 1,500               4,631         34,784          4.29
1,500 - 2,000               2,328         28,504          5.71
2,000 - 2,500               1,093         33,842         10.51
2,500 - 3,000                 957         13,662          5.39
3,000 - 3,500               1,678         12,859          6.39
3,500 - 4,000                 333         13,125          6.20
4,000 - 5,000                 351         10,567          4.25
5,000 - 6,000               2,956          4,164          1.89
6,000 - 7,000                  -          11,067          6.79
7,000 - 8,000                  -          17,981         14.87
8,000 - 9,000                 990          6,348          5.17
9,000 - 10,000                 -             200           .62
10,000 and over               591         13,816          1.91

Total                      85,516        619,509          5.10

                          FOOTNOTE TO TABLE

     /1/ For statistics on gross estates, see Table 3.

                           END OF FOOTNOTE

     Source: STATISTICS OF INCOME, 1930-1934.
 
[Next]