The national Republican., 1867-07-09
CONGRESS AND THE INTERNAL
REVENUE LAW.

We have heretofore alluded TO the ne
cessity that Congress should, as soon and
as speedily as possible, give its attention
to the thorough modification Of the inter
nal tax law. The condition of the Treas
ury, the frauds and corruptions which are
now practiced in collecting the tax, par
ticularly the revenue from whisky, and the
fact that all the Government loses from
this source alone is imposed on other
things, and in fine upon those very arti-
cles Of prime necessity which all the peo.
pie daily consume, in the increased cost Of
those articles, demands immediate action
on the part Of Congress. Itmust be taken
for granted that we have an immense debt
upon us, the interest upon which must be
paid at least, to say nothing Of its gradual
reduction. Then we must have the means
to carry on the Government. These are
stubborn facts that no man will deny.
Now, where is the money to come from ?
The answer is simple-from the wealth,
the productive industry Of the country
from every mans pocket something must
come. We know Of no other just rule
than equal taxation. Now, we could point
out many inequalities in our present sys-
tenn that demand immediate removal
and call loudly for more just and equit-
able distribution Of these heavy burdens
that are crushing some Of our people to
the very earth.
But let us, on this occasion, look to
some facts and figures which 60 to show
what the Government is losing by the ex-
orbitant tax upon whisky, but more
especially what it is losing by its method
Of collec ting this tax, and through the cor
ruptions Of the men it has employed to do
the work. 1t was natural that Congress
should impose heavy tax upon whisky,
because it is not q necessary article Of con-
sumption. 1t is an article that all can do
without, indeed all are, doubtless, better of
without it than with it. Still Congress, in
levying this tax, should have so arranged
it that all that was imposed could have
been collected.
The tax upon whisky is 80 per gallon,
and it was estimated by Congress that
from this source alone the Government
would receive sl00 OO0, 900 annually The
= New York Times has some pertinent and
well considered facts and arguments upon
this topic The Times says:
Previous to the war 1t was estimated
that 80, ,000,00 gallons Of spirits were pro-
duced in the country. Allowing nothing
for the growth Of the country since 1860,
and assuming that there has been de-
crease Of 10000, 900 gallons year conse.
quent upon the increase Of price, we still
have an annual production Of 100000
gallons. If only three .fourths of the
whisky manufactured paid the tax, the
Government would receive over $780,
900 900 annually. This would relieve the
Treasury at once, and place our finances
upon sound basis.
Last year the Government received from
whisky s37, 100000. This year it will re.
ceive less than 100000 and for the
last two months II has not been receiving
at the rate Of over Sl0,O0O,OO0.
To make whisky at the present prices ol
grain costs from 40 to so cents per gallon
with the tax added, it should therefore sell
in the market at about $3.50 per gallon
For the last four months il has not brought
over $l.60 per gallon, and at the time the
Metropolitan Revenue Board was consti.
tuted 1t could be purchased at $l.25 pei
gallon, all properly branded as ''tax paid.
No one can now afford, at present prices
to pay the tax on whisky, and the law i'm
posing it has practically become dead
letter.
The premises of the Times being ad
mitted, its facts and figures correct-and
we can see no fallacy in either-all its
conclusions must then be accepted as cor
rect. What state Of things in respect to
our Internal Revenue law is presented by
this picture. Does Congress see it, and
will it remedy the evil, or must we drift
still longerH
The Times, in alluding to the condition
Of things in the department of Interna
Revenue in New York and BROOKLYN
says:
1t is a low estimate to say that this cit,
and Brooklyn require 10000 gallons O
spirits per day for sale and CONSUMPTION
Before the war it was fully 10000 gallon
per day. As this quantity. under tn
UOnueu sbStchi, Wuulu ull De received II
New York and Brooklyn, and the take
paid to the collectors of these cities, thos
officers should receive from spirits $50, 90
per day, or $ls,0O0,000 per year. Ho,
much haze they received? Without pr
tending TO any precise knowledge Of tn
figures on this subject, we know enoug
to warrant us in asserting that, since III
lst OF January last, period Of six month
they hive not received $l,0O0,0OO. Her,
then, is a fraud of $s,OOO,OOO in 81
months. Here are eight millions of do
lars, which ought to have gone into th
public treasury, which have actually gon
somewhere else. What has become {
this enormous amount Of money! VIII
is it that is thus diyerting this vast curren
ofpublic revenue from the public trsasur