, 1866-01-31
WEDNESDAY. JANUARY s.. 1866.
THE INTERNAL REVENUE,

rAddress CHICAGO TRIBUNE" Chicago. III.
WEDNESDAY. JANUARY 81. 1866.
THE INTERNAL lREvENUE.
The report Of tho Internal Revenue Com
mission is one Of, the most important docu-
ucnts communicated " Congress during the
present session. II Is the result Of 4 years
lard study on the part Of three very industzi-
Gus and competent gentlemen. After giving
IL MS careful IN examination as can be be-
slowed through the medium Of tclegraphic
synopsis, We do not hesitate to accord 10 its
main features our warm approval, and to ex-
press the hope that Congress will enact them
into law.
The reduction OF the whisky ta1 to one
dollar per gallon, seems To us not only wise
but i,nperativcly necessary, If the government
would secure even moiety Of its just dues
from the excise upon TINT article The con
sumption Of wtisky continues to be shout rs
great as ever; but the existing tax is 50 high,
and the tcmptatlont TO smuggling. illicit d1stilla-
ton, and Ill manner Of swindling 90 enormous,
Tint not only Is the government dcffauded OF
the greater part Of its revenue from the art1-
Gle, but honest dfst1llets are thrown out Of
tus1ness, and thousands Of persons are cor
71Iptcd and dcbauclcd WHO, but for thIs tempt
alton, might have remained reasonably hon.
est. Hence reduction of the tar h
no, only, q measure Of economy, but
mcae,iEc In the interest Of good morals.
The Commission recommend merely an
equalization Ut the income tax (exemptinc in.
comes under and including $1,000. They
give us no ratc Of taxation upon incomes
ui1cr they shall have been cqnalixed. The
existh.g rate is five per cent upon incomes cx-
crcGing f6o0 and not exceeding f5.0o2. and
ten per cent upon those exceeding 5000.
The Commission say that q discrimination
natnrc ol 8 penalty for business thrift and
sagacity. While 1t Ia. true tlat q
n,an having large income can afford
to ray al excessive tar TINT is no reason wAy
le should lie compelled to. The whole spirit
of our laws Ii that taxation shall be equal,
4 nan who OWLS thousand acres OF land
oi course pays ten times rs much taxes on
That land as lis neighbor, who owns only
hundred acres; but he does not pay twenty
titues us much. He pays an cqunl amount In
proportion TO what he owns. There Is no
ftason founded in justice why he should pay
more. Inequalities In taxation generally
tend 10 diminish revenue, for the moment q
person conceivcs that The law does not deal
fairly by him he begins to con1riye
means and excuses for circumyentinc
the law. We regret that tln Commission
did not fn1ieate the rate OF the tax. Five Der
cent. is the highest rate, In our Judgment
that this source of revenue will bear. Five
f17r Nor14 10 1f,v41h
IN Great Britain, md the statistics in that
country show that a low rate produces more
revenue 1han high rate, because people will
make their returns more honestly when the
rate il low than when It Is high. Il this be
true in England, where Incomes arc more cas-
ily asccrtaipablc by the officers Of the revenue
than in this country, the experiment Is surely
worth trying here.
The Commission recommend a tax of fire
c.nts prr pound on cotton, In lieu Of two
cents, the existing rate-this tax to be col
lrcicd Of the exporter and the manufacturer,
thus securing the entire amount Of tax at a
email number Of places instead OF pursuing It
all over the cotton fields and cotton markets
Of the South. An objection may be ralsed
ageuinst this proposition On the ground that
II IL IN export tax, aud thus prohibited
by The Federal Constitution. But II
Is not ar export tax II the duty
DC laid ul1n tho entire ,net.on
cop, and moi merely upon Aa-6ort;op ex-
I"rfca. The same ohiet.ttton lie. a,ain.t the j
existing tax If TX. 5 cents Der pouud-.he on,v
..Hl'reh.e being III Il, the 1,,acc or cn1,cction-
I.ron crpn nf : nm mn botae -,ba .ra-ova
c1,u .rior Ia the w,r-,bc ,nr-,.,,,+, .,,nuat
OF fhis tnr won1d bc ssu1 no5 ~ s,r."s,..s
ope.1,alf Of mi. c,o,, strr,s ~. 49,. a..sss
p1owtf, hcnaftr, tbe .,,or,,. - ~au.,,.s
n,ot,r l.,,,.a -, t,.ta "
mn uyn oG v1,,,, 80 49,. ~ e.-,',
ho no;d nv rara,,-, as.,s.-: 49,. '14 GN ~ou.a
.h3s tox wo,,d ~, ~ aasr 49,. ~ ~
cents mr. no,1na ~ e4,,.. $500 $500 ~ ~
counties. mt onr rnonoro,r . - sv"s a",.ns
rrow;n,v IL so sscure that - ~, =. a
ves,s before We shall baye anv resnect. M.
compct,tor even under This st,mn,us Tha
1ropricty of allowing a drnVhocr ~ hornt-.
or five cents pcr nound On esnorted cn,,on
Foods. while We maintain a n,o,.ct1re 4ar;T
On iupottcd cotton s,r,ods IL nj least o,,.k-
tiouable: cspecia,1v If ". aaont onother
Recommendation IF The Commission ,bot all
existing drawbacks be abolished.
The revenue derived from the cotton tar
will enable the Government 10 abolish a r,s4
plumber OF petty and Irritating taxes. which.
like 20 many musoulto bites. cause a s,,cat
deal OF pain without drawing much blood,
Among these may be mentioned taxes on
plate, watches and carriages, taxes on small
manufactures, taxes repeated on the same ar
tcle when going through different processes
OF manipulation. etc The commission look
forward to an abolition of NIL tayeR nn mann.