/1/ Actually, its effectiveness is confined to the calculation of the amount of credit for death taxes paid to States allowable against the 1935 Federal estate tax.
/2/ Originally suggested by Ely in EVOLUTION OF INDUSTRIAL SOCIETY, p. 294, and more recently considered by the Interstate Commission on Conflicting Taxation (See its 1935 Progress Report).
/3/ Taxation in Kentucky, p. 115.
/4/ "The Inheritance Tax" in Annals of A.A.P.S.S., V. XCV, p. 173.
/5/ William J. Shultz, The Taxation of Inheritance, 1926, p. 303.
/6/ Proceedings of the N.T.A. (1930), p. 333.
/7/ Alabama, Arkansas, Colorado, Connecticut, Florida, Georgia, Iowa, Kansas, Michigan, Minnesota, Mississippi, Missouri, Nebraska, New York, North Carolina, Ohio, Pennsylvania, South Carolina, South Dakota and West Virginia.
/8/ These computations ignore the $5,000 annual gifts to any number of different individuals which are exempt from the present gift tax. See p. 50 below.
/9/ Section 502 or the Revenue Act of 1932, amended, provides: The tax for each calendar year shall be an amount equal to the excess of --
(1) a tax, computed in accordance with the Rate Schedule hereinafter set forth, on the aggregate sum of the net gifts for such calendar year and for each of the preceding calendar years, over
(2) a tax, computed in accordance with the Rate Schedule, on the aggregate sum of the net gifts for each of the preceding calendar years.
/10/ It should be noted that New Jersey collections in 1936 were abnormally high as a result of the settlement of exceptionally large estates which approximately tripled normal annual death tax collections.
/11/ Florida's high position in 1936 is abnormal.
END OF FOOTNOTES