Wyandot County Republican. [volume] (Upper Sandusky, Ohio) 1869-1903, 1871-02-16
EXTRACTS FROM A SPEECH OF
HON. JOHN SHERMAN
OF OHIO,
delivered in the Senate Of the
United States, January Goth {,
1871,
INCOME TAX.

peal OIL tue income tax necessarily
involves the consideration OF ou
whole financial policy, and canno
be hurried through upon the interest
ed clamor Of the comparatively few
persons affected by it. Nothing i.
more pleasing than to repeal taxes
and it would be easy to show tha
the repeal of any tax now levid would
give relief. The income tax is now
only levid upon those whose goot
fortune it is 10 enjoy large property
or whose salaries or profits lift them
far above the pressing wants that rest
upon the great mass of our people
The possession of large property and
the ability to earn large income ne
cessarilly give to those enjoying this
income great ifluence over public
opinion. They speak through the
daily press, from high official stations,
| from great corporations, from cities
where wealth accumuiates, and with
the advantage of social, personal,
and delegated influence. l know the
power of this infuenc.
Besides, the income tax is subject
to some objections which touch the
pride and feelings Of the Influential
class upon whom it is levied. From
the nature of the tax it must author
ize some espionage into the private
affairs OF individuals, especially il
fraud is suspected; but in this respect
it has been greatly changed and modi-
fed. 1t now stands as tax of two
and a. halt per cent. on gross incomes
over two thousand dollars. Ii this
income is capitalized at s33, 1888,
which, at six per cent, would yield
| $1,000, it stands as the equivalent OF
a property tax of one and a half mills
on the dollar on property in excess
of S33,333. 1t is the only tax levied
by the United States that falls upon
property or Office, or on brains tina:
yield property, and in this respect is
distinguished from all other taxes
levied by the U. States, all Of which
ere upon consumption, the eensuInp
ton of the rich and the poor, the old
ond the young. l make this the
simplest division of taxes-taxes
uI.on possessions and taxes upon con-
sumption. As tue income tax now
stands, it is estimated that it will
yield 3I2, 1885,, 900 out Of an aggre-
gate revenue of $320,000,000, or
about four per cent. or one twenty
sixth part of our aggregate revenue.
And it mus be remembered that the
income tax by its terms expires in
two years, while we cannot hope that
the other taxes will be either short
lived or in their aggregate results
will be grately deminished,
And now, sir,- it is proposed to
single cut this tax from all the others
this tax that bears most severely
upon US and those best able TO pay
and to repeal it, leaving undisturbed,
unrepcaled, and undiminished all the
taxes that bear upon the consump-
ton of the necessaries of life. Now,
sir, if consulted my own interests,
my own case, my own advancement,
1 would yield without resistance to
what is the evident current of opir-
ion here, and let the income tax 90
1 would yield to the i-npuls;.ve feel
ing of the Senator from Massachus.
etts, Mr.. SuIner,l who, when the
subject was mentioned on Friday,
dem.anded that the income tax be re-
pealed that night, before we went
home. I would no longer contend
with personal friends who regard
this tax as odious and oppressive !;
but my own conviction is so clear
that its repeal now is wrong, both in
policy and justice, that it becomes
my imperative duty to state the facts
and reasons fully and clearly upon
which this opinion is founded.
And. sir, it is due to the Commit
tee on Finance, to whom this bill was
referred, and who fully and fairly
considered it, to submit to the Senate
the considerations which induced
them to report againstthis bill. That
committee is charged with the broad
subject of our public Finances, en-
bracing in its range not only this
tax but all the other taxes levied by
the national Government, and the
still more important subject of our
currency and public debt. They are
expected to look with more care than
Others into the effect of a proposed
Measure upon our general financial
system. The cries Of the few who
complain of the income tax easily
reach the ears of all of US, but we
must inquire whether we can grant
their wish without doing injustice
and wrong to the whole mass of oul
people; whether we can disturb the
| adjustment of the burdens of taxation
without danger to other interests
more important, Or by shifting the
load upon others less able to bear it
The members of that committee
are no more III favor of taxes than
other Senators but we have to keeI
our eyes constantly on the expendi
tures of the Government, and wher
you direct these expenditures taxes
mus follow upon the track Of youl
appr opriations with as much certain
ty as. the waves of the ocean seel
their level And not only must We
folio W your appropriations, bat We
must constantly consider the effec
of a surplus or deficient revenue
upon the value OF yourcurrency and
the public debt. Ifit is of primary
ilup .ortaHce to approach specie pay
IN. Is and fund your debt at lower
rate IF interest We must maintain
our revenue and reserves on {
strong er basis than if we had only
to meet our current expenditure. Ir
the deb ltes we have had on this in
come tac Senators seem to think tha
we could save enough in some way
to enable us to repeal the income tax
and perha, ps. if the Committee o.
Finance b. d power to. limit appro
priatfons, it could be DONE We al
know how idle task tbs would be
We take your action as the basis O
orr labor prODOse taxes only as de