Bedford inquirer. [volume] (Bedford, Pa.) 1857-1884, 1866-02-09

Operation of the present system,
Proposed Amendments of the ReVe-
nue. Laws.


NEw York, Jan. %. The official preh-
minary report of the Revenue Commission
ers is published The Commission have a.
dopted the plan of taking dp specifically for
investigation those sources Of Revenues
which their own experience and the expert
epce of other countries have indicated as
likely to be most productive under taxation,
and most capable of sustaining its burdens
The result of these investigations, they pro-
pose to submit in the form of independent
and special reports.
The Commission complain of the imper-
feet and incorrect statistics furnished them
by the Government Bureaus, and the great
difficulty experienced In conducting their
investigations, owing to the abnormal and
disturbed condition of every branch of trade
and industry since 1861, the frequent altera-
tions of the tariff and the Inauguration Of
the Internal Revenue system.
Many branches OF trade and industry have
been curtailed during this period from thir-
ty to seventy-fve per cent. Every advance
made in the tariff and inthe excise had been
anticipated by every class of importers, deal
ers, manufacturers and SPECTATORS, so that
the government has not exhausted a single
one of its legitimate sources of revenue.
The Commission estimate that on the lst
ofJulv. 1864 the date when the advances ia
the tax on distilled spirits offrom fifty cents
to one dollar and fifty cents per gallon took
effect, there were made and stored in antlel-
patton of this advance at least forty millions
of gallons, OF quantity sufficient to supply
the wants of the country, for at least year
in advance. OF cigars, it is estimated that
from seventy to eighty millions were manu-
factured and sold in the city Of New York
alone, in anticipation Of that tax.
The stock of spices imported INTO the
country previous to the advance of the tariff
was also probably equal to nearly two years
supply, while in the case ofthe Insignificant
article of matches, on which the tax Is only
one cent per bunch, the stock accumulated
in anticipation of the tax, was so large that
it has not even at the present date, January,
1866, been exhausted. The COMMISSION
then gave an account of the revenue system
Of Great Britain and the per centage yielded
by each impost to oreyenue.
The Commission strongly condemn our
present system of revenue, and regard its
diffuseness as one Of its greatest imperfec-
tons. A system of taxation so ditfuse as
the present one necessarily entails system
Of duplication of taxes, which in turn leads
10 U0uuC VI DAACCSs q dCNlSdcC
both of production aud consumption, and
consequently Of wealth, restriction OF ex-
portations and of foreign commerce, and a
large increase in the machinery ofcollect1on.
1t cannot speak too strongly OF the lnJurI-
GUS influence of this duplication of taxation,
upon the industry Of the country. The in
fuence of the duplication of taxes in sus-
tanning prices, is also, In the opinion OF the
Commission far greater than those not con
versant with the subject generally suppose
Were the prices of gold and the National
currency made at once TO approximate, and
the present revenue system to continue un-
changed, it would be impossible for prices OF
most products, of manufacturing industry
to return to anything like their former level
In suggesting remedies for these evils the
report says: In respect to the evils arising
from the excessive duplication OF taxes un-
der the internal revenue system, and from
a lack of equalization between the tariff and
the excise a remedy, in the opinion Of the
Commission, should be sought for in such a
revision of the present internal revenue sys-
tenn as will look to an entire exemption of
the manufacturing industry OF the United
States from all direct taxation, distilled and
fermented liquors, tobacco, and possibly a
few other articles excepted.
The Commission are unhesitatingly pre-
pared to recommend that the change recon-
mended should be made gradually and ac-
cording as experience satisfies us of our a
bility to substitute other and less objectIona-
bic forms of taxation adequate to produce a
revenue corresponding to that relinquished.
As to the manner aud extent to which this
reduction may be carried out, and at the
same time insure to the government an ade-
quate revenue. The report says, as the ay-
erage of the present tariff is understood to
be upwards of forty per cent. upon the IN
voiced value OF those impOrtations upon
which duties are levied, the Commission,
after making all due allowance for a posi-
ble reduction of some duties, and an increase
of the free list, think it safe to estimate the
amount Of revenue derivable, from customs,
for the fiscal year, 1867, to be at least one
hundred and thirty millions of dollars.
The Commission recommended that the
tax on distilled spirits be reduced to one dol
lar per gallon, and that the existing rate of
taxation on fermented liquors be neither in
creased or diminished. Great pains have
been taken by the Commission to advise
some mode of preventing fraud in the col
lection of taxes on these articles
The attention of the Committee has been
especially given to the cotton product ofthe
United States as source Of revenue. As a
result of their investigations, the Committee
as sumo that tax of FIVE cents per bale be
levied on and after July lst, 1866, upon all
cotton the product of the United States, and
that the same be collected of manufacturers
at places of consumption, and of merchants
or factories at the port of expectation upon
all foreign shipments
In respect to tobacco the Commission are
unanimously Of the opinion that the tax
should not be laid upon leaf With some a.
mendment Of the presentlaw, and ON account
of the exhaustion Of stock in the country,
made in anticipation Of the tax which is now
nearly effected, the Commission believe that
the government may safely rely upon an an
nual revenue from this source in the imme-
date future of at least SIS, 900, 600
The Commission think an income tax viii
probably be sustained with less detriment to
the country than any other form of taxation
Discrimination at present in the rate Of inn
post levied on income under and in excess
OF five thousand dollars is however, unjust,
being in fact tax on the results Of success
ful industry and business enterprise; and the
Commission recommend that this discrimi-
nation be abrogated and the rate equalized.
They recommend that in future assessment
OF incomes one thousand dollars be ex-
empted from taxation, and that in assessing
| Intome tax no allowance be made for house
rent, or at least that amount allowed to be
deducted for rental should not in any case
be allowed to exceed three hundred dollars
In the future.
With the changes above recommended,
the Commission believe the government NAV