Grant County herald. [volume] (Lancaster, Wis.) 1850-1968, 1878-01-10

Washington, Dec. 26.-Among the
officials there is much attention de
voted to the proposed re enactment
of the income tax law. The Secre-
tary of the Treasury shows very
clearly in his report that the receipts
of the Government for the next year
will fall far short of the expenditures,
and that something must be done
both to reduce the expenses and to
increase the resources of the Govern
ment. Secretary Sherman, while a
member of the Senate and chairman
OF the Senate Finance Committee, said
that the time would come when the
income tax would be restored. The
law was repealed in June, 1872, by
the votes of the South and West, as
sisted by few votes from the East.
These sections are now, it appears,
quite as anxious to have the law re-
enacted as they were to have it re-
pealed before. The argument is
that the restoration Of the tax is in
the interest OF the poor man that
the tax is not appreciable, and bears
only on those who are able to pay it,
while it furnishes millions of dollars
of revenue. Representative Carter
Harrison, of Illinois, will be one of
the foremost men in the movement to
restore the tax. Elk Senator Morton
and S. Wilkinson, of Minnesota, used
to be in the habit of saying on the
stump that the whole State of Mime.
sofa did not pay into the Treasury as
much money on account Of income
tax as one man ID the city of New
York-A. T. Stewart. At this time
it is asserted that the South and West
will have to pay little tax on incomes
if the law is re-enacted on a liberal
basis. Both sections named (partic-
ularly the West) are in favor Of re-
duction of the tax on whisky and to-
bacco. The West is united on the
whisky question, and the South on
the reduction of the tax on tobacco.
If they unite, there will be a power
full party for the North and East to
overcome. The argument of the
whisky and tobacco men is the old
one, namely, that the rate of tax
should be so adjusted that it should
not be so high on one side as TO en-.
courage fraud, nor so low on the 9th.
er as to deprive the Government of
revenue. The manufacturers and
dealers in these two commodities as
sert that the tax is now too high, and
that a greater revenue would be de-
rived from smaller tax than is now
received. There is also much talk
about restoring the duty on tea and
coffee. Those in favor OF it (and
there is large party behind the
movement) say that it is useless to
deprive the Government Of so large a
revenue unless it benefits large class
of people. They assert that when
the tax was taken off the price of tea
aud coffee went up instead of dow,,,
and that the talk about a Stree break
fast-table," is all nonsense. The cut
ting off of the tax benefited only those
heavy dealers who had discounted
the passage of the act. Instead of
benefiting the poor man it increased
his expenses. Those who oppose the
restoration of the tea and coffee tax
say that the effect OF such law
would be to send the price of tea and
coffee up from 10 to 20 per cent, and
that the movement is in the interest
of those who control the market. and
who have an immense stock on hand.
or have contracted for its future deliy-
cry at present rates. The questions
OF internal staxation and customs tar
ms are likely to become very import
ant during the present session of