The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1869-08-04
SPIRIT OF Txxn PREss.
Editorial Opinions Of the Leading Journals
Upon Current Topics Compiled Every
Dny for the Evening Telegraph
THE INCOME TAX.

strugoles TO be entered upon in the next ses-
sion of Congress will be for the renewal of the
income tax, as it will expire after one more
assessment under the limit imposed by the
present law.
This renewal will evidently be resisted by
the advocates of heavy taxation now imposed
under the tariff, in order that they may pre-
vent n reduction of the exorbitant duties now
levied, upon the plea that if you take away
the income tax no more can be spared
They will thus attempt TO reverse the action
of England in this matter. In 1912 it had
become evident to English statesmen that the
protective system SO long adhered to was an
utter failure, and had resulted in a deficiency
of the public revenues of over ten million
dollars in the previous year; which deficiency
was but an indication of the general condition
of the people. Ships were rotting at the
wharfs, manufacturers were daily becoming
bankrupt, and the agricultural population
was literally starving,
The tariff then IN force in England was
much less absurd and iniquitous than our
own. and the average rate OF duties far lower,
vet to it was lightfully attributed a large part
of the misery endured by the people; and it
was in order to enable Parliament to reduce
or entirely abate portion OF the most
onerous duties that an income tax was for the
first time levied in time of peace. This act
limited the tax to three years, and the revenue
40 he derived from it was intended to replace
the expected reduction of customs revenue,
which it was assumed would follow the abate-
ment of duties But although duties were
lowered or taken off upon over five hundred
articles. the increased prosperity of the cOun-
try was so great as to cause much larger con-
sumption of the things upon which duties
were continued and the actual reduction in
the amount of revenue proved to be very
foyy thar f,r.o raI
the previous deficiency and left a handsome
surplus to accrue towards payment of the debt
At the end of the three years, i'll 1919, IN
spite of a great struggle to the contrary, the
income tax was renewed in order to make
another reduction i'll the tariff possible with
out danger to the revenue: and this time the
duty on over seven hundred articleswas either
totally abated or largely reduced. Again in
creased prosperity was the result, and the
customs revenue maintained itself nearly
to the full amount collected prior to the
revision.
From these experiments as we may call
them, the lesson was learned that the indirect
taxation levied under protective or even
revenue tariff is far more injurious than an
income tax with all its impertectiOns and in
equalities.
Since lS45 the duties imposed under the
English tariff have been abated, until within
the last year the last vestige of protection has
disappeared with the duty Of shilling
quarter upon corn: while the income tax
varying in rate according to the eMgency of
the times, has become a part of the perma-
nent revenue system OF the British empire,
which no one now dreams of abating entirely.
In a speech delivered a year or two since
before the Society of Political Economists of
Paris, Mr.. Gladstone stated the results of the
English policy in the following words
"wnl you forgive me, gentlemen, and will you
aCqut me of presumption If, before close, lay
before you the latest results OF our experience? We
have advanced far in the process OF beratlng trade.
The efforts and the legislation of quarter OF cen
tuTy have reduced our taritl from twelve hundred
articles it may almost literally be said to seven. or
these there is which, light the duty is,
cannot justify defend. 1t is the duty on grain.
This duty has lust been removed) The others are
duties levied only to meet the necessities Of the
State, and they include no protective element.
Gentlemen, for this comparatively advanced condi-
ever. We set the nations of the world bad and
pestlent example by building up, through
tenn in all its rigor We nav thus. as
teachers, have lost all title to be heard. Never
theless, having mended our ways, we are
anxious that other countries, too, should pront, if
not by our precept, yet by our example For this
purpose boldly refer to matters of fact; and do
not scruple gentlemen to assure you, as matter of
fact established by our experience that the road Of
free trade is like the road Of vrtue-the first steps
are the most painful the last are the most profit
able If it be good to abolish prohibitions aud to
substitute protective duties if it be good to pass
from high protective duties TO those which are
moderate, and again from the moderate to the low,
there is one step yet to be taken-it is to abolish
such duties altogether; and, believe me, it is the
best of all. Aslong as duty of this kind remains il
is after all question only whether the chains laid
npon human industry and skill shall be heavier OF
lighter; but there they still remain And do not lei
us fall into the sophism which would persuade us
that the extinction OF duty is OF necessity loss tC
the State. The State abolishing duties which fette
industry, finds its compensation in an increased
return, which the augmented weOlth and aCtvit
of the country supplies from less eXceptOnabt
sources"
1t remains for us to apply this lesson to on
own case. Our people must decide whethe
instead of an absolute giving up of the incom
tax, they will not endeavor to renew and pei
feet it. That there is fraud under it now, n
one will attempt to deny, but it is a frau
which costs the people simply the amoun
lost; it is not like the fraud of protectiv
duty, which not simply fails to yield muc
revenue, but costs the people ten on twent
times the amount collected by the Govern
ment. There may be inequality in the pre-
sent income tax, but no such inequality a
that of a tariff under which the silks an
broadcloths of the rich are taxed but sixt
per cent, while the poor mans blanket
taxed three hundred. There may be iniustic
in the income tax as now levied, but eve
now there is no such injustice as that of tn
tarlit, which deprives the poor man of fooC
OF fuel. and OF shelter, and doubtless the COS
of the tools with which he works.
Will the people submit to a repeal of I'll
petty tax imposed upon incomes, while tho,
who now plunder the community under pr
cess of tariff laws are permitted to continr
their spoliation?
Let it rather be enacted that false an
vicious taxes be abated and then modera
and well-adjusted income-tax will be chee
fully paid by those whose gains are honest
Und fairly earned. The people should distru