The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1866-04-27
~. Nav Int.rn.l a.v 'n.e Lew.

Tn. Ns~ Intermsl Rev. 'nue Law.
The Ways and Means Committee OF Congress,
after several weeks Of labor, have at last re-
ported an amendatory Internal Revenue bill.
We have as yet only received synopA's OF the
report, and cannot, therefore, judge as TO Its
real merits or dement's as whole. But there
are unquestionably many points which WIN
commend 1t to the public. In the first place
there is a considerable reduction of the taxes
on many items, while numerous others are re-
lieved altogether. 1t is also stated that there
is to be q general reorganization Of the In
ternal Revenue system; but just how it is to be
done is not clear at present 1t would, how
ever, be very strange if the working of the
system did not Of itselfsuggest many important
notifications to adjust it to the wants Of the
government and the people. A tax Of that
kind is yet comparatively new thing in this
country, and is one of those measures made
necessary by the stern events Of our war. 1t
could not be expected that a perfect system
could be inaugurated at once. Time and
experience were needed. If the committee
have taken the trouble to gather the facts
which the experience of the working Of the
present law has suggested, they will no
doubt be able to so adjust the taxes and shape
the application of the law in q manner that
will be more beneficial to the government and
taxpayer.
Among the important changes in the tax
we notice almost an entire 'abrogation Of
the tax on those enumerated articles in the
present law, under schedule A, such az pianos,
silver plate, spoons, gold watches, yachts, and
the like. This is a movement in the right
direction. No portion of the internal revenue
tax is so annoying to the taxpayer or causes
so much dissatisfaction to the people as that
on the enumerated articles under that schedule.
We doubt if the tax received from that source
throughout the country has paid the expense Of
collecting. There are numerous other articles,
many Of them necessaries to every household
and family in the country, which are to be
exempt. All incomes under one thousand dol
lars are excluded A discrimination is also
made on the same principle in the manufac-
ture of clothing, boots and shoes, as well az
with the milliners To Offset these reductions
tax of five cents per pound is levied upon the
raw cotton, with provision in favor of our homo
manufactures, in the shape Of a drawback on all
manufactured cotton goods exported. The tax
on cotton will no doubt BIZ one Of the most
popular provisions Of the law, and will OF
itself furnish an immense revenue to the gov
eminent, if the radicals in Congress will only
allow the country to be restored and thus
encourage the production Of the raw material.
The tax on brokers' sales is reduced, without,
we believe, any good reason. That is BUSH
ness purely of speculation, and the tax is less
felt and more easily paid than any other. II
is tax that only affects few and does not
in any way increase the burdens of the people.
Its reduction, we fear, is mistake. 1t would,
in our Judgment have been much better to have
reduced the tax on sugar and other necessaries
of life than on the business of Wall street.
But there is one point in regard to brokers
sales on which the action of the committee must
commend itself to the public that is, the
clause providing that brokers shall pay tax
on sales made for themselves as well o. for
their customers. The trainers Of tho pseeent
law no doubt intended 10 secure that result
when they matured the act; but for some cause
the provision was 10 ambiguous that many Of
| the brokers have evaded the tax - applied
| to transactions for themselves. The decisions
Of the Revenue Department at Washington
have been 80 conflicting and contradictory -
to the Interpretation Of the provision that .
large proportion Of the tax has never been col
lected. Long liigations have been had on tho
point, which finally resulted in decision Of
the Suprems Court declaring that the brokers'
! were liable ON sales for themselves the same -
| for their customers. The committee have now
| inserted q clause which leaves no room tor mis-
construction and makes the payment Of the tax
| imperative.
Taking the brief synopsis published yester-
day a. the guide, the report on the whole il On
! improvement on the present law. There are
some serious objections to 1t; but they may be
partially counterbalanced by other provisions
for the application Of the law which We have
not as yet seen. It repeats some sections which
will prove injurious In the working Of the Law
unless some better provisions have been in
serted In their place, OF which there Is no mon
| ton in the report before US. The machinery to
carry the tax law into operation Is one Of lie
most essential portions. II should be 90
framed that its application will be just to all
classes and grades Of taxpayers, and not 10
allow discrimination between men engaged in
the same trade, or give loophoie for tho
fraudulently disposed to escape and leave the
burden on the shoulders Of the honest taxpay-
er. Nothing short of the full text Of the report
| will show whether the committee have pro-
vided for all the contingencies which arise
under the practical working of q tax law Of
| this kind or not.
DISTRICT ATTORNEY HALL says that the the
atrical monopolists love to keep their employees
down to starvation point