Vermont phÅ“nix. [volume] (Brattleboro, Vt.) 1834-1955, 1882-07-07
Hon. !. M. Tyler ON the Reduction of
InternRl-ReVenue Taxation.

On Thursday, June %, the House of Rep
resentatives being in committee of the whole
for the consideration Of the bill TO reduce in
ternal-revenuo taxation, Congressman Tyler
of this district made a speech in which the
arguments for reduction ure very clearly set
forth, as also the duty of Congress in the
premises. After referring to the rapidity
with which our immense war debt has been
diminished and our interest reduced as a re-
suit of wise legislation and prudent admins
tration on the part Of the peoples servants,
Mr.. Tyler proceeds as follows:
with our present receipts from customs
and from internal revenue tho $40 Cos, 900
of 81 per cents that are now outstanding can
all be paid in from four to five years. and
then no further portion Of the debt can be
reached till September 1891 when the $780,
100000 of bonds bearing a per cent. interest
will be redeemable.
Contrary TO the prophecy of fifteen years
ago that our bonds would never be paid, we
are now paying them too rapidly. II the
present revenues are continued the Govern
ment will soon have an enormous surplus in
its Treasury or it will be compelled to 20 in.
to the market like other customers and pur-
chase its said 4 per cent. bonds, and its
per cent bonds which mature in 1907, and
pay the high ruling premiums thereon, which
would be an inexcusable act in view of the
low rates of interest which they bear TAX
ing the other alternative, the accumulation of
large sums in the Treasury would be at the
expense of the business interests OF the coun-
try, which require the money for its own
uses, and would inevitably tend to financial
embarrassment and disaster Besides, a full
treasury is always an incentive to injurious
legislation, ard is liable to be hindrance to
an honest administration of the Government.
According to the estimates made by the
| Secretary of the Treasury in December last
the revenues for the present fiscal year, end
ing on the Both instant, will be; From Gus
toms, S2l5, 200, 900 from internal revenue,
| 1856, 100000. The surplus revenue for the
fiscal year ending June 80, 1881, was $780,
| 0G9 000 for the year now nearly ended, act
ual for three-quarters, and estimated for this
quarter, $3.50, 900, OO0 for the next year. on
the basis Of present tariff and internal revenue
systems, $105, 900, 900.
THE estimates for next year seem TO have
| been made with an allowance Of 81, 900, 900
| for rivers and harbors, when, if the bill which
has passed the House becomes a law, ST.
500 900 will be appropriated for that purpose,
leaving smaller surplus for the sinking fund
and the payment of the debt than the sum es-
| timated.
| L nave reClleu THESE financial STATISTICS TO
exhibit the prosperity with which the nation,
under a kind Providence, has been blessed
since the close of the war, and to illustrate
the ability and the determination of the peo-
| pie to relieve themselves from the great bur-
den of the rational debt.
Assuming, then, that it is unwise policy
| for the Government TO collect and hoard un-
needed revenues in it's treasury, it follows
that soon the Government must, by a modi-
fication of the tariff or by a modification of
internal taxation, decrease its revenues or find
new objects upon which to expend its surplus
/ moneys.
ut is true that we can for the next four or
| five years devote the present revenues to the
redemption of the remaining 80 per cent.
bonds, but it is time to begin to reduce taxa.
ton. The point at which to begin is obvious,
| as indicated in the bill and accompanying re-
port of the Ways and Means Committee
| Capital and deposits Of banks and bankers
other than national banks, S3,762, 20s
Capital and deposits Of national banks, 5372,1Ts
Bank checks, 2263, All
| Matches, 3,2Te, $50
Proprietary medicines, etc. 2,226,5OS
Total, $40, s02, $3.50
''Private banks and those organized under
state laws, not dependent on any law of Con-
gress nor objects of the nations care, except
a care that they issue no circulation Of their
own, should no longer be compelled to con-
tribute TO the support of the Government by
q tax on their capital and deposits.
1.-The occasion no longer exists for contin-
uing the tax on the capital and deposits of
national banks. Both those items of taxa
| ton were levied as war measures; they are
upon the legitimate and necessary business of
the country and should now be removed
The tax on the circulation of national banks
rests on different ground. In the language
of the Secretary of the Treasury, is a tax
on franchise of profit TO the favored grantee,
and upon subject in the furnishing Of which
| to the national banks the Government is at
an expense. There seems to be a reason that
while taxation is the means of meeting gov
ernmental expenses, this tax should not be
| among the first 10 be taken off,
''TheTe is a general demand for the aboli-
ton of the stamp tax on checks, drafts, etc
The subject of the repeal of the law impos-
ing this tax has long been discussed by Com
| gress. 1t is duty long delayed. This tax is
not upon the banks themselves but upon the
people, and much of it upon the poor people
of the country.
matches and proprietary medicines are
articles of common and constant use. The
former are of absolute necessity to all classes
and conditions of people, and the latter are
| purchased and consumed more largely by the
| poor than by any other class. These articles
have made large contributions to the Federal
Treasury and continued them for many
years Proprietary medicines alone have
paid about $3G, OOO, 900 to the Government in
the last twenty years. The Government can
now collect sufficient revenue by tax on ar
tioles that are clearly Injuries Indeed, the
justice and propriety of removing all the tax
es indicated in the above list hardly require
argument.
1.-THE committee also recommend tho re-
moval of the tax on cigars and cigarettes.
This reduction would be of especial benefit
to small manufacturers all over the country
and it seems to be demanded in order to make
the taxes on tobacco in its various forms
equal.
"The committee in their report recommend
the reduction of the tax ON Teetifers, liquor
dealers, brewers, and dealers in malt liquorB,
but this step should not be taken at present.
Before this is done We should have the re-