Daily Kennebec journal., 1883-11-29
srArRnYNf ~ Nh. BLAINE
eral 1nyplus-Why Shoul1 the States
not Have . Tax On Spirits Ser
their Own Bene6tl

PHILADELPHIA, Pa, Nov. %.
The Press of tomorrow viii contain letter
from Hon. James G. Blaine to Charles Emery
Smith, editor of the Press, stating Mr..
Blaine's objections to the distribution OF the
surplus revenue of the federal government
among the states and proposing instead as
substitute that the national government has
no longer any need of the tax ON spirits.
which entire amount which 1t yieids
should be paid TO the States. Three fatal
objections in Mr.. Blaine's opinion make the
Pennsylvania proposition to distributing the
federal surplus, unwise.
First-The utter uncertainty Of the size of
the redundant revenue. II may be one mil
lion or one hundred millions, and unless
steady, no state tax could be RENTED
on the account of this aid, while the sporadic
federal contributions to the States would be
wasted, a. was the last distribution Of sur
plus.
Second-The division Of this surplus
would impose on senator's and representa-
tives divided duty. For the sake Of their
states they would wish the surplus to be As
large as possible, which would present con-
stant temptation to withhold appropriations
from objects of really national character.
Third-The assumption of q continuing
redundancy of national revenue is supposed
all sound views of administration, because it
is sure to yield to extravagance, corruption
and all manner of schemes for getting rid of
money. The time is rapidly approaching
however, when the national revenue, yield
ing under the present system of taxation
hundred millions beyond the amount required
for Government expenses, must be reduced.
A strong movement is already on foot for the
repeal of the entire system of national reve-
nue. which receives support of protectionists
like Judge Kelley, of free traders like Mr..
Cox of New York. This conjunction of op-
position views in support Of the abolition OF
the same tax gives opportunity to relieve tax
alton in the States. Of all our taxes, the
States is most oppressive; it is direct; it
falls on property with crushing force. In
few communities it is less then per cent.
and in most it is over 2 per cent. Why,
therefore. should not the States be permitted
to have tax on spirits for their own benefit
if national government does not need it!
Can it be wise to continue direct tax on
property and at the same time command q
hurtful luxury, luxury which taxation Ops
presses no one. Customs and revenues sof
the national government monopolizes excise
and is open in theory to both state and ma
tiOnal use in taxation, but in practice the
national authority can levy an excise tax on
whiskey. No State can guard its borders
against whiskey from other States, or make
an economical collection of such tax within
our revenue. The federal machinery for
collecting of this revenue is in full operation
and bill of ten lines could direct the secre-
tary of the treasury to pay the whole of it,
less the small expense of collection, to the
States and Territories in the proportion of
of their population and to continue it per-
manently as part of their regular annual
revenue. Such plan would give the reve-
nue. from such spebifc tax wholly to the
States and would not depend UPON a chance
surplus or an accidental remainder in the
national treasury. 1t would make tax on
spirits and malt liquors and permanent re-
source to all States permanent resource to
all States. enabling them thereby to definitely
readjust and adjust our own taxation. Each
State could most wisely use its share accord
ing to its own necessities.
The total return Of the tax on spirituous and
malt liquors last year was over $40 200, 900,
an amount which would tend to increase
rather than to diminish, as each State saw
that the suppression of illicit distilleries was
to its interest. The state tax could be re-
mitted the state debts paid, or if this aid
was divided among the cities and counties,
their expenses would be proportionately de-
creased.
In a table annexed to his letter Mr.. Blaine
gives the proportionate share of each state
and territory on the basis of population.