New-York tribune., 1867-02-14
ton of every State now unrepresented will
meantime have been provided forf
INTERNAL TAXATION.


Means in revising the Internal Revenue laws ap-
nears to have been to lessen taxation to the full
est extent the expenses and credit of the Govern
ment would permit. We fear they nave gone
far beyond that limit. Mr.. Morrill,, whose able
speech in the House yesterday carefully explained
the probable effect of the new bill, attempts 10
Justify the reduction upon the grounds that the
extraordinary taxation necesstated by the war
is not required in peace; that the produc-
tion of the country in the coming year
will be decreased; that the expenses
of the Government will he lessened,
and that stricter economy is possible
The Committee believes that the revenue the
hill will provide will be, with other resources,
sufficient to pay the ordinary expenses OF the
Government, the interest on the debt, ana
leave small balance for the payment OF the
debt, Three months ago the Secretary OF the
Treasury made his estimates of the receipts Tor
the year ending June 80, 1863, but these
Mr.. Morrill, announces have been reduced by
later calculations. The receipts are now estl-
mated at 1891 900 900, of which $13O,OOO,OOO are
to be raised by customs, and $24O,OOO0SO by
internal taxation. The expenditures for the
samo period are placed at S3G7, G7,247,64l, which
leaves for the liquidation of the debt $4,000
600. II is plain that the Committee have
made a calculation, the very closeness OF which
is evidence that it cannot be trusted as the
basis of new legislation and reduction.
In reducing taxation, the Committee had the
choice of two methOds-ether to diminish the
average rate from per cent to per cent, or
To totally exempt certain articles. The latter
has been adopted, and the bill is therefore
open to the charge of partiality-with how
much Justice We shall not anticipate.
This method is sustained by Mr.. Morrill, by
the argument that partial taxation is in the
end equally distributed, and that to lessen the
cost of living is ~ much benefit to industry
as 10 lessen the cost of production. Proceeding on
this theory the Committee has selected certain
manufactures for total exemption, believing that
others may be exempted at no distant DAY.
| The tax on sugar from sugar canes Is thus
reduced to one cent per pound, and all Othef
sugars exempted; leather boots and shoes,
pottery ware, tin-ware, cOopcragc, &c are
exempted, and on WOODEN manufactures
the tax is reduced from to p
pcr cent. Iron and cotton manufac-
turers are encouraged to hope for equal
privileges. In reducing the Income tax the
Committee had to consider the injustice OF the
law by which one mans skill is taxed as much
rs au0her's property, but believed 1t impos-
sible to change the system, and scarcely neces-
sary, as the Income tax should he regarded as
temporary, and as one of the first to be
released after manufactures All incomes 1t ls
proposed to tax alike, at five per cent on all
amounts the minimum of exemption is raised
from 5000 TO $1,000, aud a further allowance
is 10 be made for rent insurance, and
repairs. That this will prove q large
loss 10 the Government is admitted and
the total reduction of taxes the bill would
effect is estimated at $15, 100000. Six months
ago Congress reduced the tax 10 the same
amount The statistics 10y which Mr.. Morrill,
shows the injustice of reducing the tax on cot
ton are new apd interesting. On whisky the
tax of 50 per gallon ~ retained, though the
Committee believes that the stringent provs-
ions of the bill will prevent fraud and make the
tax real source Of revenue. Last year the Gov
cmmcnt, by collecting the tax, received S2o,OOO,-
900; the whisky princes, byevadirgit cheated the
revenue of S500OO,0O0. The present bill is in
tended 10 project honest disillcrs, and punish
others, aud by increasing the special tax from
( 100 % 500 it il thought the number of small
diStiilcrs will he diminished, and the Opporuni-
ties OF fraud limited.
In further support of the bill, Nh. Morrill,
points to idle mills and fOrgcs, to the decrease
of commerce on our canals to the total suspcn-
sion of many exports, and argues that the pres
sure on tac industry of the country is greater
than it Gu bear. Admitting the force of these
facts we 90 not admit that the Government
even though il is no longer burdcncd with
the enormOgs expenses Of the war; can afford
such Il great reduction of its revenue. Mr..
Morrill,, indeed, urges that the National
credit must he maintained aud that the
question is but one of estimates.
tt it could be shown that these exemptions
can be safely made the country might be will
ing to accept the bill; but the risk is too great,
the margin is marrow; the Committee of
Ways and Means admitting that the re-
ductiOn is fully as great as they dare to
propose; and Mr.. Morrill, cautioned the House
chat if il should believe that other manufac-
lures should be exempted it could not safe
" exempt them without providing other
sources of revenue, equal To those extin-
gishcd. Far better for the country to bear
the taxes now imposed than to involve itself
in unknown troubles 10y seeking 20 throw off
the burden too soon. We have Il great debt
great yearly expenses; we must reduce the
former and meet the latter and the way to do
il is not by reducing taxes