Connecticut western news., 1882-12-13
THE INTERNAL REVENUE REPORT.
Advising the Repeal of Many Taxes, In.
 cluding That Sugar.

1ne report o1 O. D. haum, OOmmlS- sioner of Internal Revenue, states that the internal revenue receipts, since 1879, have increased year. by year $1O, ,0O0, 900 to $12, 100000. In 1879, the receipts were $113, ,000, ,000, and in the fiscal year last ended they were $146, 500,0O The receipts for the current fiscal year will probably fall below last years total, but are likely to reach $145, ,OOO, ,0OO, if the present taxes are retained.
 The Commissioner calls attention to the maxim that no more revenue should be raised than is needed to support the Government economically, and to gradually reduceits debt, and also to the fact that at the present rate of paying the debt all bonds subject to call will be paid within three years, after which, in order to dispose of its surplus revenue, the Government will have to buy Al and 4 per cent. bonds in the open market, which would probably advance their price 20 to 80 per cent, to pay which would be waste of the peoples money. The debt should be exting1ished only at a rate to meet the requirements of the sinking fund, viz, about $55, ,000, ,0OO per annum. A reduction of $60, ,0OO, ,00O to SIC, 1000, GOO in our annual revenues IS urgently called for. He offers the follow ing suggestions:
 In remitting taxation the relief should fall as far as possible upon necessaries of life. The great bulk of internal taxation is derived from liquors and tobacco. These are articles of luxury, and the dealers therein are proper subjects for taxation. Public opinion seems to be strongly in favor of the retention of these taxes. The other objects of internal tax ation, with the amounts realized in the past year, are: Friction matches, $3,272,- 258; patent medicines, etc. ,$1 ,978, ,395. 56; bank checks, $2,319, 455. 14; bank de- posits, $4,O07, 7O19 savings bank de- posits, 1888, 400.47; bank capital, $1 138,- 34O.97; savings bank capital, $14, 729.38; total, SIP, ,7S8, ,521. 40. Add to this the taxes collected by tho Treasurer of the United States from national banks, and there is total derived from these sources of SIS, ,74S, ,223.77.
 These taxes should be repealed. The tax on savings bank deposits is tax on thrift. The tax on patent ntmedicines, etc., is vexatious, being levied upon innumera- ble articles. The taxes on bank capital, deposits, and checks are not needed for revenue. The repeal of these taxes would would greatly simplify the internal rev. enue system.
 He advises reduction of 40 per cent. in the special taxes paid by dealers; also reduction of $4 per thousand on cigars. All the repealed taxes and reductions recommended above, if carried into eff feet, would reduce the internal revenue taxes BPS, 1902, ,129. He thinks it desir- able to consider the practicability of taking the duty off sugar, which now yields revenue of $45, ,O0O,0 900 per an mum. The best refined sugar, which now sells at ten cents per pound, could then be sold at seven, and the reduction would l amount to 90 cents per capita of our pop ulation. To meet the objection that this ] duty now protects the sugar interests in our Southern States, he suggests that bounty of 2 cents per pound might be paid upon home produced sugar. Our l home product can never meet the de- mand, as the sugar cane thrives only in a small area of our territory. The home product has not increased in 21 years, while the importations have increased four-fold. A bounty was paid for fifty years to American fishermen, for fish caught and exported, and similar en- corlragement of our sugar interests would not be objectionable.
 The receipts for the first four months of the present fiscal year, as compared with the same period last year, show an increase from cigars, cheroots, cigarettes, snuff, the special tax of dealers in manu- factured tobacco, bank deposits, and bank circulation; and a decrease from distilled spirits, all other taxes on tobacco, and the special taxes on brewers and dealers in beer. In 1881 the total revenue collected was $135, 229, ,913, and in 1882 1t was $S146, . 523, ,273, showing an increase of $11 ,293, = 361. Among the largest collection dis tricts were the First Illinois, SIC, ,466, ,026; Fifth Illinois, SIS, ,267, ,998; First Mis- souri, $6, 196, ,922; First New York, $2,
 9S4 ,OS4; Second New York, $6, 762, 211;
 Thirteenth New York, $1, ,403, ,396; First
 Pennsylvania, $3,011 ,318. During the
 past six fiscal years the sum of $749, 834,
 O71 has been collected and paid into the
 Treasury without loss by dedication.
 The total cost of collection during the
 past year was $5, 1O7, ,4S1. The total ex-
 penses were less than 3 per cent on the
 amount collected. The force connected
 with the bureau throughout the country
 is: 126 collectors, 976 deputy collectors,
 199 clerks, etc., 2, 419 storekeepers pnd
 gaugers, 30 tobacco inspectors, and 35
 revenue agents. The reported violations
 Ol lGW nuuDSf0u l, lOO.
 The sweet mash and many of the sour
 mash distillers have made an arrange
 ment for a reduction of the producing capacity of their distilleries. The result will be to cut down the reduction of dis tiled spirits to the demands of the trade. On November the spirits in warehouses amounted to 84,629, ,331 gallons, mostly fine grades of whisky. The stock o1 hand is probably equal to six years con
 sumption. The demands of the trade require the postponement of the pay ment of tax on this stock until its with
 an extension of the period during which 9 the Government keeps spirits in bond Frauds in the manufacture and sale oi whisky and tobacco have become the ex, ception rather than the rule, and taxes are collected with but little litigation l; It will be necessary to continue the sys
 tenn of policing which has produced this
 result. The granting of pensions to per
 sons disabled while enforcing the revenue
 laws, or to their families if killed, I
 recommended. Thirty-one officers have
 been killed and sixty-four wounded il
 the illicit whisky troubles. During tht , year, 509 stills were seized, 1,47l persons arrested, and four killed.
 MT. Raum recommends that the tern ) of office of collectors of internal revenue be fixed at four years, and that they be not subject to removal except for viola ,, tions of law; also, to protect the revenue from frauds, that vinegar factories be l prohibited from using tho alcoholic va
 polizing process, or else be subjected tc : the supervision of Governmen store keeper.
 The estimated expenses for the fisca year ending June 30, 1884, are: Collec