Daily national Republican. (Washington City [D.C.]) 1870-1872, 1870-05-28

The principle at the bottom Of the tax on
gross receipts Is unjust and ought to be a6an-
doned In our internal revenue Legislation.
A man may do q business Of millions per
annum, and yet be a loser. To tar his gross
reoeipls Is, under such circumstances, to tar
his losses. There have been numerous In
stances where corporations have been COM
PEELED to pay this tax who were unable TO de-
clare q dividend; while the frequent failures
of those who cater for public amusement
show the injustice Of such a system towards
them.
The object Of the law being to raise reye-
nue., and not tax legitimate business out Of
existence, taxes levied upon erroneous prin-
Ciplcs arc sure in the end to do Injury, while
they fail Of their primary object.
For instance, the management Of theatres
isalegitimato pursuit notonly acknowledged,
but In many civilized countries encouraged by
subsidies ever since the daysOf ancient Greece.
The classification Of this business with that Of
lottery dealers or gambling houses, as pro
posed In the amendatory law now pending,
was properly excepted to by managers, be-
sides other reasons, on the ground that the
laws Of nearly all States discriminate against
these pursuits and they arc consequently lie
climate.
Dickens has forcibly Illustrated the neccs-
sity Of public amusements, In his celebrated
novel Of "Hard Times, and II they arc de-
graded by the laws Of the land, they win
nevertheless be INDUCED In; but they will lose
tone and respectabllity Just in proportion As
those who cater for the public taste are com
PEELED to resort to indirect OF Illegal methods
to realize profit out Of them.
Many Of those who have been subjected to
the operation OF the gross receipt tax have
been driven out Of business. Many Of the
best theatres In the country have ceased 10 be
profitable, and Il Is difficult TO imagine q
more costly elephant to feed than non-pay-
ing theatre or opera company.
As the law stands now, with It's ttro per oli.
tax on gross receipts, losing managers are
taxed on their losses. Under any eircum-
stances even the successful manager Is taxed
upon his expenses. slight glance viii show
that these arc extraordinary. He pays I
heavy local license; he is taBed upon hdt
He pays a high rent, and is td1ed on hdt
His gas bills are enormous, and he Is doubt
shA WI ANs uhlnt anu LAX Ol
gross receipts covers all. He has large ex
psnAl'''-s- TO- ~~-----yr r--r~. ssss, STSssor
stage machinery, printing, posting and nd
vertising, besIdea the wages o. his orchestra,
the salaries Of HIS stock company, the extrav.
agant PER diems Of his Stars. 81
An these expenses are taxed by the gTosi
receipt system, and even thought II should re
quire 1--WE hundred dollars per night to pa!
them, and there should be no more than tire
hundred dollars received for tickets, yet b
must not only lose his two hundred dollars
but pay the United States two per cent on Ii,
three hundred received, which ought to go Il
liquidate his expenses. These expenses ar,
beyond his control after his contracts hay,
been entered into for the season. Whether
people come or not he must pay.
The Committee Of Ways and Means, which
had proposed Increasing the tax from two to
three per cent, has upon representations
from proper quarters, determined TO reduce Il
TO one per cent So far so good, but the prin-
ciplc is erroneous and ought to be abandoned