New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1882-12-06
INTERNAL TAXATION AND THE TARIFF.
BILL REPORTED TO THE HOUSE ABoIIsuING IN
TERNAL REVENUE ON TOBACCO VIEWS on
MANY MEMBERS ON THE SUBJECT.


TERNAL REVENUE ON ToBACco-vIGws on
MANY MEMBERS ON THE SUBJECT
lBY TELEGRAPH TO THE TRIBUSEI
WASHINGTON, Dec 5.-The majority of the Ways
and Means Committee to-day made an early ro-
sponse to the general demand for reduction Of tax
alton by reporting to the House favorably Judge
Keuey's bill to abolish all the internal taxes
on tobacco in all its forms, the act to take
effect July L. 1888. Chairman Kelley and Mr..
Errett Republicans and Messrs. Carlisle. Tucker,
Randall and Speer Democrats, voted IN the afiirma-
tive, and Messrs. Kasson, Haskell, Dunnel and Nc
Kinley. Republicans. and Morrison. Democrat, IN
the negative. Messrs. Hubbell and Russell, Repub-
lcans, were absent. The former is understood to
oppose and the latter TO favor the measure.
1t is said that the discussion in the committee
showed that the opponents of the bill are in-
fuenced by three main consideratioDs A
belief that the reduction of internal reve-
nue. proposed is greater than can be mads
with safety; that great a reduction would post
pone indefinitely any satisfactory revision OF
the tariff and belief that the public demand for q
reduction of taxation does not spring from desire
to remove the burdens of tobacco dealers and con-
sumers Chairman Kelley intimatedthat, if the bill
should receive favorable consideration in the
House. he would Immediately exert all his indu-
ence in favor OF an early and thorough revision OF
the tariff but this promise is not received with
implicit trust by the tariff reformers Mr. Haskell,
for example, is understood to have argued in tho
committee to-day that it should first proceed to
the tariff and readjust 1t to the necessities of
business and the demands of the country, anA then
an intelligent reduction of internal taxation could
be effected, for everybody would know just What
revenue would be required.
Although the question of an amendment to tho
bill so as to abolish the tax on fermened liquors,
as recommended by the President, was not mooted
in the committee to-day, Mr. Randall and one or
two other members reserved the right to offer
amendments when the bill is considered by
the Committee of the Whole; AMI It is
no longer secret that Messrs. Kelley Randall and
Speer stand ready to otter and support the one
mentioned. Indeed all of the gentlemen named ars
willing to go still further and support a propo-
siton to abolish greatly reduce the tax on dis.
titled spirits.
The effect of the bill recommended to- day would
be to reducs the internal revenue S47,301.9sS On
the basis of last years receipts and should the
taxes pe taken off banks, matches, patent medi-
clnes, etc also, the total reduction would amount
to about $50 500. 900 on the same basis. II the
taxes fermented liquors should also be taken of,
the aggregate reduction would be nearly
$77, 600 900. The total internal revenue receipts
for last year were Sl46.52O,273 of which
500, ,s73.4OS was derived from distilled spirits.
If the tobacco taxes we're reduced 80 per cent and
the tax on fermented liquors abolished. the aggre-
gate reduction would amount to al out SOB 900,
leaving revenue the basis Of last year OF about
$93 900 900; while, if the tobacco TAX should be
abolished and the tax iermented liquors re-
taiued, the prospective revenue on the same basis
would be about $50, 100000.
A TRIBUNE correspondent who talked with
about forty Representatives from eighteen differ
ent States to-day, found almost as many different
opinions on the subject OF tax reduction. Ten OF
the Representatives. mentioned are Democrats. A
good many of the Republicans whose opinions
were asked while opposing the abolition OF tho
tobacco tax. are inclined to favor reduction CT
so per cent; and "a few who now favor reduction.
only might be willing to go for abolition If they
could be convinced that the condition OF the rev.
enues would Justify it. Mr.. Rice, of Massa-
chusetts, and Mr. Hooker, of Mississippi both eX-
pressed substantially the same opinion that it
would not be wise to reduce the revenue from in
ternal taxation below eighty or hundred mlloa
dollars. Mr.. Peelle, of Indiana. wonld favor tho
abolition of the tobacco in all Its forms.
cept cigars and cigarettes. Mr. Anderson. Of Kan.
sas opposes any reduction whatever of the tax on
tobacco, fermented liquors OF distilled spirits Ne.
Jones, of New-Jersey, would like to see the to-
bacco tax reduced the rate of 10 per cent year
beginning y ith July l, 1888; and Mr.. farwell
would agree to that plan
General McCook, of New York, will vote for
the abolition of all internal taxes except those
distilled spirits. Mr.. Burrows, of Michigan. agrees
with General McCook on this subject, but Mr.
Horr of the same state sstrOngly opposed 10 It, be
lievng that tobacco spirits and malt liquor should
bear large proportion of the burdens of taxation.
Mr. Miles, of Connecticut, and Mr.. Chace of Rhode
Island, favor reduction OF the tobacco tax, and,
condltionally its abolition but both opposed
to the abolition of the tax on fermented
tobacco tax abolished, while strangely
enough, several of the Representatives from
are opposed To its abolition. Mr.. Willis, for ex-
ample declares that the tobacco interests are only
injured by the agitation OF the subject w6lle Mr.
| Blackburn wants internal taxation undisturbed
until after a revision of the tariff o. Turner, who
has voted for appropriation bill except tho
one for a publ building in his district IS OPP
posed to all taxation, and VIII support any hnd OK
| bill TO abolish or reduce II.
Judge Kelley who is an ultra protectonist. wants
10 wine out all internal taxation In order 10 preserve
the present protective tarin as nearly as possible
while Mr. Whitthorne. oiIennessee wants To do tho
same thing for dlametrically opposite purpose
| to secure % a tariff for revenue only and Mr.
| Morrison opposes any reduction or abolition Of in-
ternal taxes because he fayors free trade Messrs.
Blount and Hammond, of Georgia, agree with Mr.
Morrison but Mr.. Es-who, like the other Louis
lana Representatives Is moderate protecIionist on
account of the sugar Interest - does
abolish the entire internal revenue system " some
bigger man does not declared Mr.. Ellis, with greao
emphasis Mr. Mills, of Texas, is unwilling that
there shall be any reduction OF internal taxation
without contemporary reduction oil customs duties.
Mr.. Reed. OF Maine, think ks the subject ought 10
receive careful consideration, and that congress
ought not TO be unmndful OF the fact that the pres
sent prosperity may not continue forever that the
demand 5 on account Of pensions may be
greater than Is now anticipated; that IL is
very easy TO take Oft taxes in prosperous
times like these, and very difficult indeed 10 put
| them on again when hard times come come they
will. Conservatism of this sort Is not wanting IN
the House, talks with such men as MessIs, hjs-
| cock and Robinson of Massachusetts,, sufncienily
ndicate On the other hand, Mr.. Pe,tiOone, OF