Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1870-11-29

and that is to make the tax on all descip-
tons of tobacco uniform, Less irregu-
larity would then exist under q tax of
thirty>two cents per pound than under
the present rates. There seems to be no
good reason why there should be two Siif-
ferent rates of taxation on articles of
equal price and value, simplybecause one
is used for smoking and the other is used
Tor chewing. Why not reverse the rule
and place the larger tax on smoking to-
bacco and the lesser on chewingi With
uniform tax of 80 cents per pound on
all manufactured tobacco, the revenue
csn be collected with much greater fdel-
ity than at present. Manufacturers would
be at liberty to adopt any mode of manip-
ulating the raw material, or ary process
of manufacturing il, they deemed fit
without being questioned by the govern
ment. There would be less irregularity
in the practical operations of the tax on
all classes of consumers, while the re-
ceipts to the Treasury would be increased
by at least four and half millions of
dollars. The honest and larger portion
of the tobacco trade are in favor of one
rate on all kinds of manufactured tobac-
CO; and, while portion of the trade fa-
vor tax of 16 cents, large majority
are Indifferent as to the rate, whether it
be Is or SO cents per pound, provided
the tax is uniform.
He recommends, TO correct evils, that
the law be so amended as TO allow no
goods entered for export in bonded ware
houses TO be Withdrawn therefrom for
consumption upon the payment of tax
until twelve months from the time they
were so bonded. The Commissioner
points out the defects, antiquities and
contradictions of the law Of JHfy IA,
1870, caused by the hurry of the closing
hours of the session. He says it is be-
lieVed to have been the intention to retain
all taxes imposed on sales of distilled
spirits, malt liquors, ETC., by the act of
July 80, 1870. Yet section of the act
of July 4, 1870, nevertheless repeats the
tax on the sales of malt liquors. (
With regard to The q per cent. tax on
coupons, interest, dividends, etc., of rail-
roads, banks, insurance companies, ETC.,
be says it is believed to have been the in
tentiOn to continue the 8 per cent. tax
until August /, 1870, and after that to
substitute a tax of 2! per cent; but,
owing to the peculiar language of the
section, no tax can withhold from coupons
falling due during thelast FIVE months of
20. The amount involved in this ques-
ton is very little less than Sc, 900, 900. The
decision of the Circuit Court of Pennsyl-
vania, that no tax can be withheld from
this source for the first seven months of
1870, has been appealed TO the United
States Supreme Court. The right to
withhold tax from the salaries of gov
eminent officers during that time turns
also upon the points in the case cited.
Among other illustrations of hssty leg
islstlon by Congress, the report says pub
lie resolution No. 70, approved July Is,
1870, relieved insurance companies from
certain taxes, but an act passed the next
day restored them in language so plain as
to operate as repeal of the resolution.
The Commissioner mentions that the re-
peal of the special tax on receipts oper-
ates practically as a repeal of the tax
upon demand and sight drafts, bank
checks, etc. A portion gives to the bank
a report in lieu of check, which the
bank uses as voucher. This practice is
increasing, and seems to be gen
eral, and the present law provides
no remedy. The repeal of the special
tax on apothecaries takes effect in May
next, and yet they have TO pay after that
special tax if they use liquors in their
prescriptions. So their taxes are really
increased. The defects mentioned in
the law are but few of those dis
covered.
The Commissioner estimates an annual
revenue of $1l1,41 600 from internal
taxation after the law of last July is en-
tirely In force. He recommends all abO-
htion Of the stamp tax on prepared mus
tsrd, jellies, etc. No reference whatever
Is made to the income tax.