, 1866-05-08
FROM WASHINGTON.
The New Tax Bill,
Items Of she Reduction Of Taxation


From OuE Own Co1respondcpt1
WASHINGTON. May 3, 1886
Mr.. Morrill,, the chairman of the Commit
Ice Of Ways and Means, the Commissioner
of Internal Revenue and Mr, Wells. the In
dclatsgab1c chairman Of the Internal Rove
niue Commission, whose conscientious and
unremitting labors hare been OF iuestimablc
va!uo to the public, have been engaged, since
tho introduction Of the new Tax Bill In the
House, in endeavors 10 ascertain % nearly as
possible the effect Of the proposed modif1ca-
tions OF the revenue laws. They went to-
e.thcr over the blll very carefully, and, after
due deliberation aud calculation, arrived at a
definite conclusion as to the lcsscning of the
burden Of taxation, now borne by the couu-
try, 10 nc brought about by the opernlion Of
the new taw. Their closest estimate is that
the contemplated changes will result In an
aggregate reduction Of 1axation by the Gene
raj Government Of not less than serenity
hree millions and ttco hundred thousand dollars.
The relative yield Of the various SOURCES Of
revenue is 60 dependent upon contingencies
sucll as tho greater or lesser degree or busI-
ness activity; good or bad crops; internal
quiet or political commotion, and so forth
that II Is entirely impracticablc to determine
In advance the exact amount likely to be Oh.
talned from each. Almost the only amount
that can be liked with any thing like correct
ness, is the product Of the tax on Incomes.
There the calculations of the effect Of the
several provisions of the new tax bill, by the
three mentlemen mentioned, partook In the
main Of the nature Of estimates. Yet with
the basfs, OF such afforded by the records or
the Internal Revenue Bureau, thrir, deductions
as to the result Of the proposed exemptions
and changes Of rates can be considered, ifuot
absolutely, Mt least approxlmativcly as cor
rect as they can be made. understand that
the following are the principal items Included
in the stated cstimatc Of the aggregate reduc-
tion to BE- elected by the new law, the basis Of
calculation being The receipts for the current
year:
Induction Of ten per CT nj tax on iu-
cou.tz above 00 to FIVE per crns.. 90 900
smpied tfom $C10 tuts1 coo. ....-...... 30OQOW
Exemption OF GTOss +. ce1Pts for ttan-pur-
taisun 0f fre1gAIs from 2!s peg cent tag 4.65uUO0
Reduction OF lax on Clothing and ptAur
,, wearing app41e1 from e rcF cent. o,ooo,ooo
from . 10 per ecn;. 3,ooo,ooo
producc. merchandise, stocks, bills or
exchange, ptoEult%ory notes, gold and
sssr 90 so1 ala nulon:. 1,7ooooo
deduction OF tax on susara and sus,1t
kcduc,ion oi tax On crude retro,eutu.' NkItrS1
ne1uctlon o. TAX On all ktnus OF sclp..-. 300,U4Q
deduction Of tax on salt. S0IOc0
feducii0n Ot tax on general manntac-
tuftf l1bm u 10 per Cenl. l5QOQ COO
Inc balance Il made up by the exemptions
and the changes in the rates Of duty on vati.
Gus articles, yielding each separately nloder-
atc revenues, but representing considerable
aggregate.
As stated above, these figures are based
on the receipts, not OF the Inst, but of the
present fiscal year, which are from twenty
live to fiity per cent higher than those of 1861
u. Ibis increase, however, is not expected
to continue by the best informed authorities.
On the contrary they consider 1t certain, that
a large decrease will take place In the next
twelve months Of the income Of the Govern
ment, not only from internal duties, but
also irom customs. Everybody knows that
there has been steady decline in the COM
mercial and industrial activity Of the coun-
Try lromthc wonderful proportions 1t assumed
Immediately after the close of the civil war.
Again with the gradual fall Of the price of
gold, there las been a great reduction
In the current value Of all kinds of
taxable articles, which will, of course,
likewise result in largely lessening the receipts
Of the Government. To provide against this
falling Of, which is not expected to bc bal.
anccd by the increase of the tax on cotton
and few other articles, nor by the taxes
likely to he paid by the rebel States, the Com
mittec Of Ways and Means, upon the recon.
merdatiou Of Mr.. Wells, hava deemed L wise
to cont1ne the reduction Of taxation for the
present to the mentioned amount Of seventy
three millions, course which will no doubt
meet with the approval Of every intelligent,
rejecting citizens.
Mr.. Wells estimates tho probable product
Of the proposed five cents per pound tax on
cotton at over forty millions of dollars, and
the aggregate drawback on exported cotton
goods at not over four millions per annum.