Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1874-02-24
WASHINGTON.
Taxing Industry Instead of Cap
tai.

Efforts of WhifthOrne and Atkins TO
secure N Reduction Of the Taxes on
Tobacco and Whisky-SynOPsis of
their Arguments
Correspondence of the Union and American.
WASHINGTON, Feb. 20, 1S74.-This
morning the Hon. w. G. WhitthOrne,
of your State, went before the Com
mittee on Ways and Means, and sub
mitted on behalf Of himself and his col
league, Hon. J. ID. c. Atkins, an ar
gument in favor of reduction Of the
tax on tobacco and whisky. Knowing
that your readers would be interested
In this movement, / have procured a
synopsis of Mr.. Whitthorne's argument,
which l append, but it is due to him
to state that he greatly elaborated and
illustrated the positions assumed be-
fore the committee; and it will be graf
flying to your readers to be informed
that he made a very favorable impress
sion on the members of the committee.
TENNESSEE.
SYNOPSIS OF MR.. wHITTHoRNE'S Ar
GUMENT.
1t is said to be a sound and wise rule
of taxation, THAT taxation ought to
be levied at the time or in the manner,
in which it is most likely TO be conve-
nient, for the contributor to pay II. :"
1t is submitted, that the tobacco and
whisky tax, violates this rule. These
taxes bear heavily upon sections and
classes, who are lily to bear them.
Taxes should be levied as near as can
be, upon capital, or upon luxuries, and
not upon the productive industries of
the country; or stated, in other terms,
taxes, which are burden, necessary 1t
may be admitted, should be levied upon
accumulated labor, which Is wealth, and
not upon active labor, which is "pro-
ducing wealth"
Admitting that the committee know
better than other members of the
House the necessities as well as the
taxable resources of the government,
and that they appreciate the moral IN
fuence of such legislation as tends to
develop cunning, fraud and evasion Of
the law, and the craftsmanship that
would avoid it, and that my duty to the
committee and the people represent,
is simply now to acquaint the commit
tee with the objections of the people to
existing laws taxing the production of
whisky and tobacco
They are briefly
l. Generally that the tax IS special
and partial-in' that one industry or
one product is taxed, others not; it falls
on some sections, not all.
2. The rates are too heavy, especially
when the partial character of the tax
is admitted, coupled with the fact that
other classes and pursuits are favored
and protected. A diminution of the
amount, especially ON spirits, it is be-
heved will increase the revenue, and
extend or rather distribute the weight
of the burden, and will tend to decrease
the frauds, etc, attending its present
collection.
3. The agencies now used to enforce
the law are distasteful, oppressive and
corrupting. Modes and agencies with
which the people are familiar should
be adopted Such as a general license
system, with the tax resting either up
on capital employed, or sales effected.
4. The tax or license required of the
small or retail dealer in tobacco is so
onerous as to drive these men from
among the sources of revenue, and the
tendency is to decrease the amount of
tobacco produced. The great majority
of the retailers of merchandise or gro
ceries cannot afford to pay the revenue
required of them; hence take no license,
and ergo diminution OF revenue or an
evasion Of the law.
5. Under the prohibition, that the
producer can alone sell TO a licensed
dealer. The small producer, under its
operation, is inhibited from paying even
rent in kind; he cannot pay for supplies
furnished in its production, nor can he
adjust his small accounts contracted for
support of his family. Tbisprohibition
dinlinishes the amount of production
Why? f.
Let the committee reflect, that this
class represents a great number of the
producers, poor white and poor negro
laborers who live remote from licensed
dealers, and the cost and expenses OF
ca1Tying-it to one, "eats up" the value
Of his crop. The committee will accept
the fact, that for the most part, these
parties are not read in the law, nor are
they familiar with the decisions of the