The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1870-12-15
REVENUE REFORM.


great maritime nation restored.
REVENUE REFORM.
F~ODs the ~ Y. Times.
Mr.. Kelley has done one thing for which
the Secretary of the Treasury will not
thank him. He has at the earliest moment,
elected from the House an expression of
opinion favorable to the largest possible re-
duction of internal taxation. Mr.. Bout
we'll predominating idea in fiscal and fnan-
cial matters is that the debt shall be paid be-
fore it is due, and that oppressive taxation
shall be continued to render that object
attainable. This seems to be the beginning
and the end of Mr.. Boutwel's philosophy.
The House, on the other hand at the instance
of Mr. Kelley, has almost unanimously de-
clared that large proportion of the taxation
imposed to meet the emergencies of the war
should be repealed without needless delay.
Practically, the mere declaration amounts to
nothing. But it has a certain value as an
antidote to the Treasury theory, and as an assu-
ran ce that taxes will be still further reduced.
Except in this light, Mr.. Kelley's resolu-
ton does not merit particular commendation.
His purpose in Introducing it is tolerably
apparent. AS a doughty champion of the
Pennsylvania monopolists, he naturally de-
sires to avert inquiry into the tariff and the
reduction and read justment of its burdens.
He thinks, probably, that the Indictment to
revision will disappear for time if the Gov
ernment be left without a surplus. and,
therefore, he proposes to absorb the surplus
relied upon by the Treasury, by striking off
the internal taxes. We cannot compliment
him on the excellence of his strategy. 1t will
deceive nobody. 1t will give to the monopo-
lists no tangible benefit. But it does commit
even them to the policy of cutting down the
taxes. The House will hereafter select the
taxes to be cut down, without reference to
Mr.. Kelley resolution.
The truth is, that the internal taxes are no
longer formidable in amount, nor are they
with the exception of the income taX-in
their nature Objectionable. The system as it
existed at the close of the war was cumbrous
and oppressive. 1t was felt everywhere. and
in all imaginable forms Congress has, how
ever, so reduced and amended it that it has
ceased to be oppressive or odious. 1t is
mainly limited now (), to spirits and fer
mented liquors; (2), tobacco and CIGARS (3),
incomes above $4,000; (4), banks and bankers;
90, gas; (6), stamps. Take the income tax
out of the list, and nothing remains to which
the public can reasonably demur. SO long
as revenue from internal sources is required,
it is proper that liquors and tobacco should
yield. the lions share of tribute to the
Government There would be no harm in
repeating all that remains of the tax on sales
namely, that which is paid by stamps. But,
generally speaking, stamps are a Legitimate
source of revenue; and certainly neither the
gas companies nor the national banks can
urge any very strong plea for exemption.
When the income tax is abolished, then,
as it should be this session. the internal reve-
nue. system may very well be borne without
complaint. In the last fiscal year it yielded
$185, 235, SG7. The act of last July repealed
about $50, 600, 900 of these taxes. Supposing
that tho toro1nptivanaSc of tho
continues the same, and that the cost of col
lection is the same, we might estimate the
internal revenue for the current year at, say
S135, 900, 600, of which some eighteen mil
lions will represent the income tax at the
reduced percentage. Deduct this, aud the
service will still contribute $1t7, 900, 900 to
the Government-quite enough to cover all
its expenditures, exclusive of the interest on
the national debt. We might safely assume
that the revenue will exceed the amount
named, because the increased efficiency of
the service is swelling the receipts from
whisky and tobacco, while the consolidation
of revenue districts should largely diminish
the cost of service itself.
For these reasons, there should be no hesi-
fancy on The part of Congress in regard to
the repeal of the income tax. The Govern
ment can dispense with it, and yet retain an
internal revenue more than equal to all le-
gitimate requirements.
A large margin for the reduction OF taxes
still remains. But it may be sought most ad-
yantageously in the tariff. The gold duties
collected at the customs-houses are relied
upon as a guarantee for the payment of coin
interest on the debt and for the annual con-
tribution to the sinking fund. The public
credit requires that the revenue from this
source shall not be jeopardized. Mr.. Bout
well has shown, however, that it is possible
| Al.
public creditors sinking fund included, and
at the same time obtain a considerable mar
gin for the reduction of duties. Thus official
| figures testify that while the interest on the
| debt-including five millions of currency in
| terest-in the last fiscal year amounted in
round figures, to $129,0 900, the receipts
| from customs duties amounted, roundly, to
! Sd94, ,000, 600. Here was an excess of income
over outgo of between sixty-four and sixty
five millions. Allow twenty-fiv millions foi
the sinking fund, and little less than forty
millions remains available for reduction, ol
more than twenty per cent. of the revenue
supplied by the tariff.
A iudicious reduction of customs duties
would be followed by an increase of revenue
from that source. That is one of the stronges
arguments for reform, since relief to tht
people would be accompanied with gain t,
the Treasury. Leaving out of view thi
aspect OF the question, II is apparent that th'
Treasury can allow diminution of the tarif
rates to an extent. averaging twenty per cent
of the present duties. Some might be swep
away absolutely-others might remain as a
present; but this average reduction is posi-
BILE without embarrassing the GoVernmen
or injuring the public credit. And who ca
doubt that the effect of the reduction woul
be TO stimulate dropping industry, to impair
new life to many branches of commerce, an