New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1871-02-07
THE INCOME TAX.
ANOTHER LETTER FROM SECRETARY BOUTWELL,
IN FAVOR OF THE CONTINUANCE OF TIL

ANOTHER LETTER FROM SECRETARY BOUTWELL,
IN FAVOR OF THE CONTINUANCE OF The
TAX. .
WASHINGTON. Feb. 6.-Secretary Boutwell,
has addressed letter to the Hon. Samuel hooper oh"
man of the Committee on Ways and Means dated the 81
nst in reply TO his communication nclOsng resou-
ton OF the Committee regarding the Secretays views
in writing upon several topics suggested by the PROPOSE
ton to repeal the income tax The Secretary says IL ~
impossible state with precision the cost OF conecuhg
the tax but he is sasfedit will not exceed haf mihoh
dollars and il him the net result will not be less
than $40 100000 per annum for the two years covered
by the existing law. The estimates Tor the Dscal
ending June 49, 1871 We're a1G upon nd BUSINESS classes
of the country. According to that estimate nere VIZ ~
the principal OF the public debt in addition to
PAYMENTS through the sinking fund 1t was
also stated tfs se estimates af e surplus applicable
the payment OF the public debt would be increased H.
cstimates the surplus viii fail below the mentioned
Assuming What probable tnat s sees NO
TO apprehend check to industry business nut even
with this view OF the future II cannot be claimed thaI
the estimated surplus IL greater than prudence
In the view taken by him OF the question: ne cannpe
shrink from the duty advising the continuance OF the
system Of taxation until the meeting OF congress III b
cember next. We are now he says hardly better qua
we're when those changes made. The reduction or
taxes at the OF Congress was estimated to be
eoual TO 30 of the total revenues OF the co-
try or more than 100000 Il 1t wise 20 make rurther
reduction until the result Of the laws In force Is known
income tax the Secretary that in one year more
the effect OF the reductions already made Will be iy IN
derstood and legislation then proceed upon the basis
OF experience IL il not unreasonable expectation
that Congress will then be able To declare the income tax
is no longer needed, and also simultaneously To make
corresponding concessions to other classes or
IL h my earnest desire that this result may be Obtained
but while the future is uncertain, do not recognize
either the Justice the eXpediency OF relieving at once
and completely those who liable to pay an income
tax and by the transferring the chief burden
OF payment OF principal and interest or tue pubc
debt pensions and the current expenses OF me Gov
eminent 20 the producing consuming and business ln-
terests OF the country. $500, .
Entertaining the opinion that IL Ia not advisable TO
reduce taxation at the present time TO the extent OF
10000 900 OF in any other considerable sum- am not
prepared your further inquiry III II proDaDle
that as early December next the CONDITION OF the
country and the finances will justify the reduction IN
dcated and IL 1t will be practicable for the secretary
of the Treasury make such suggestions as TO the m0d
featiOn OF the Tariff and Tax laws as In MS OPINION VIII
furnish the greatest relief industry and business But
pocy Tie large revenues of the Government have been
The chief means by which the public credit has been I'M
proved and paper currency appreciated materially
in value, compared with coin. The same cause VIII
continue produce corresponding results We're our
debt small deficiency ofreyenue would be unnpoftaht
but with debt of g. C0O0OO II might, ana pr0DaOy
would, produce serious consequences. Nor shOuu we
lose sight of the fact that the change when mas TAKEN
place in the financial system OF the country during tne
last 10 years renders the preservation OF the puDc cet
duty of the highest Importance 1nasmucn as every
business enterprise and every financial undertaklhS
rests upon the public credit.