Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1878-08-14
THE TAX ON BEER.

LOOzcing about for a Source Thence to Sup
ply the De1tciencg should the TnbaccO Td1
Ce Reduced-Cnpacityo t Beer to Bea,.un
IMcrcdsc-P10bdbte fiction Jy the Reren1c
Bureau.
Washington Special to New York Times.]
In view of the disposition manifested at
the last session of Congress to revise the in
ternal revenue laws, with the intention of
reducing taxation on certain articles, notably
tobacco, it is probable that the commissioner
Of internal revenue will make some very i'm
portant recommendations to Congress in his
next annual report, and perhaps advise very
cadical changes in the existing rates of taxa
lion. The internal revenue bill which
passed the House last winter provides for
eduction in the tax on manufactured tobac-
20 from "a to 16 cents per pound. Should
his bill be enacted without any amendment
treasury would, in all probability be seriously
embarrassed. The advocates of reduction
If the tobacco tax argue that the proposed
-eduction would not produce any serious fall
ng off in the amount of revenue now col
ected from this source, and produced upon
the theory that a light tax on staple article
generally used by the masses, increases the
consumption by cheapening the cost to
consumers, and thus compensate for the
reduction in the rate of tax. In proof of
This theory they refer to tue increased re
venue derived from distilled spirits and
gars after reduction was made in the rate
If tax on these two articles. 1t is generals
admitted that the present tax on manufac-
tured tobacco is too high. and the opposi
ton in Congress to the reduction was based
upon the inexpediency of cutting down taxa
zion when the revenue of the government is
,apidly running down, rather than upon the
merits of the proposition. 1t was admitted
chat if $8,0O0,O0O was stricken from the an
nual revenues additis nal taxation would have
TO be imposed, and the recognition of this
act was what gave great strength to the
proposition to restore the income tax, by
which it was estimated that from $5,OOO.O0O
TO $S,OQO,00O would be annually collected.
1t is now believed that provision can be
made against any loss to the revenue that
night follow the reduction of tax on manu-
factured tobacco without seriously disturb
ing any domestic industry, and without hav-
ing recourse to a revival of the income tax.
With this object in view, it is contemplated
by internal revenue officials to recommend
hat the tax on fermented liquors be in
creased from ST. to $1.5O per barrel of 81
gallons. During the last fiscal year about
10000, 900 barrels of fermented liquors were
returned for taxation, and at the increased
rate of tax named $5,OoO,O0O would be added
to the revenue from this source. 1t is urged
that this increase could be made without
affecting the brewers or the consumers, as
they could readily add the increase to the
cost of the liquors without affecting the
price to the consumers, because of the large
! profits made by the retail dealers. A barrel
# beer, for instance, now costs The retail
dealer So, and he sells it for $40. thus realiz-
| ing $50 per cent profit. An additional ex-
pense of so cents per barrel on the original
cost to the retail dealer would not be un-
reasonable, and would not be sufficiently
large advance to Justify an increase in the
present price to the consumer. The exist.
ing tax on fermented liquors is not in pro-
portion to the tax now assessed upon dis
tiled spirits, tobacco, and cigars, and it is
very probable that the commissioner of in
ternal revenue will recommend an increase
of so cents per barrel in his next annual re
port to Congress, and that such a recon-
mendation will receive the approval of the
secretary of the treasury, and the indorse
! ment of the President.