New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1882-03-20
TJY PEDUCTION.


propose to reduce taxes as follows: On
whiskey from 30 to 50 cents per gallon; on
malt liquors, from 81 to 60 cents per barrel !;
on tobacco, snuff, etc. from 16 TO 10 cents
per pound On cigars, from So to 81 per
thousand on cigarettes, from ST. 70 to 90
cents per thousand reduction of tho special
taxes on dealers in liquors and tobacco; re-
peal of the taxes on capital and deposits of
banks, checks, matches and proprietary lnedi-
ciDes, cosmetics and perfumes. 1t is estimated
that this measure, if adopted without change,
would reduce the revenue about $6S.OOO,O0O,
upon the basis of last yearS's business.
This is large reduction to make In a single
year. Considering for the moment only the
fiscal position of the Government it may he
doubted whether so great reduction Is entire
" safe 1t Is substantially cutting OFT an
amount equal to the entire surplus revenue
expected for the current year. Yet the last
fiscal year was one Of extraordinary Increase
In business and in revenue. 1t Is ques-
tionable policy to curtai revenue upon the
theory that the whole Of this extraordinary
increase will be constantly retained-that there
will not presently come year of comparative
depression in business, in which the revenue,
reduced according to the above proposition,
will so shrink as to leave the Government without
adequate means for interest on the debt and
for the Sinking Fund. There was an increase,
in a single year, of about 10 per cent in the
consumption of spirits and tobacco. As popu-
latiOn does not increase per cent, it is we'll
nigh certain that such an increase in consump-
ton cannot be maintained, but must soon be
followed by a decline, Mt least for a time.
The year was also one of extraordinary i'm
ports of dutlable goods and it cannot be ex-
pected that there will be no reaction, after an
increase Of $61, 100000 or Al per cent, in
customs receipts from 1879 to 1881. But the
proposed measure would leave the Govern
mcnt without the amount of revenue needed,
If any considerable shrinkage from diminished
activity In business should occur.
1t seems probable, therefore, that the House
will hardly venture to pass bill so greatly
reducing the revenue Large reductions, it is
true, are both expedient and desirable. But an
estim ate of the reduction which can safely be
made should be based, not upon the receipts
for single year of extraordinary revenue, but
upon the average receipts for several previous
years. For the last five years the receipts have
averaged only 1901 900 900 yearly, against
nearly 1851, 100000 In the last fiscal year.
Unless it is the object to make the Govern
ment so poor that one bad year might leave
1t virtually bankrupt, 1t would be well to ex-
ercise some caution in the abatement OF taxes
The repeal Of the taxes on matches, propri-
etary medicines, checks, deposits and capital
would be eminently wise, and was in effect
recommended by the Secretary of the Treas
ury. 1t would remove vexatiOus burdens which
yield to the Treasury only about 81 100000
and which In some respects seriously retaId
the natural and hcalthful development of
legitimate business This part of the proposed
reduction, though it is likely to meet with
much foolish objection, is exceedingly desirable,
and Ought to be made.
1t cannot be said that the taxes on liquors
and tobacco hinder any legitimate business.
For these branches of business, whatever may
be thought of them, have certainly not been
hindercd in their development by the taxes
now imposed. The production Of spirits last
year reached the unprecedented aggregate of
117,72S, $50 gallons, against 66, lO3,O53 GAL
Ions in 1878, so that the production has more
than doubled In three years. The increase III
the production of fermented liquors has been,
during the same time, from 100000 barrels
in 1878 TO 1927, 700 barrels iii 1881, ali in
crease of 40 per cent while tho increase in
population has been less than 10 per cent.
The increase in the production Of tobacco has
been from 1l9, 100000 pounds in 1878 to
l6l, 631, los pounds in 1881, or nearly 40
per cent, hut the increase in manufacture of
cigars and cigarettes has been moro than 90
per cent. No one can say that these branches
of business have been depressed by excessive |
burdens
But it is proposed to take off taxes amount |
ing to about 500, 100000 from the mannfac-
ture and sale of these articles If the Govern
ment can spare so much revenue, are there |
not other industries. at least equally useful
and meritorious. which might fairly come
in for some part of the benefit The |
whole revenue from duties on sugar and mo-
asses of all kinds is only $4,000, 900, but |
the industrious and temperate w0rknen |
throughout the land would be helped to the |
extent of at least 50 year for each family, |
by the removal of these duties, if SO large a |
revenue could be spared. A large proportion |
If them, who use neither liquors nor tobacco,
would gain absolutely nothing by the pro-
posed reduction of sos, 500,0 900 in the taxes
III these articles. Ought not the benefit of
emoval of burdens to be distributed as fairly
Is possible, without especial discrimination
against those who practise an honorable econ
,my for the happiness of their families9
1t is a sound rule of political science to i'm
,ose necessary burdens in such Il manner that
hose who please to practise self-denial can in
/ measure avoid them. 1t is not craftsmanship
o cheaper luxuries if thereby it is necessary
o render the necessaries of Life 40 much more