Savannah morning news. [volume] (Savannah) 1868-1887, 1883-12-01
THE SURPLUS REVENUE.
Mr.. Blaine on the Pennsylvania Plan to
Distribute.

The Philadelphia Press of Thursday
morning contains a letter from Mr.. James
G.. Blaine to Mr.. Charles Emory Smith,
editor of the Press. stating Mr.. Blaine's
objections to the distribution of the sur
plus revenue of the Federal Government
among the States, and proposing instead,
as substitute, if the National Govern
ment has no longer need of the tax on
spirits, that the entire amount which it
yields should be paid to the States. Three
fatal objections, in Mr.. Blaine's opinion,
make the Pennsylvania proposition to dis
tribute the Federal surplus unWise:
First. The utter uncertainty Of the size Of
the redundant revenue. 1t may be 100000
or $l00,000,000, and unless steady no state tax
could be RENTED on account of the receipt Of
tins aid. While SPORADIC Federal contributions
to the States would be wasted, as was the last
distribution OF the Federal surplus.
Second. The division of this surplus would
impose on Senators and Representatives a
divided duty. For the sake Of their States
they would wish the surplus to be as large
as possible. which would present a constant
temptation 10 withhold appropriations from
objects OF a really national character.
Third. The assumption of a continuing re-
dundauty Of national revenue is opposed to
all sound views of administration, because
it is sure to yield TO extravaganza, corruption
and all manner Of schemes for getting rid of
money.
STATE TAX AND SPIRIT TAX.
The time is rapidly approaching, how
ever, when the national revenue, yielding
under the present system OF taxation Il
hundred millions beyond the amount re-
quired for government expenses, must be
reduced. A strong movement is already
on foot for the repeal of the entire system
of internal revenue which receives the
support of prOtectionists like Judge kel-
ley and free traders like Mr.. Cox. of New
in support of the abolition of the same tax
gives rare opportunity to relieve tax
alton in the States. Of all our taxes State
taxation is the most oppressive. 1t is
direct. 1t falls on property with crushing
force. In few communities it is less
than l per cent, and in most it is
over , per cent. Why, therefore,
should not the States be permitted to
have the tax on spirits for their own bene-
fit, if the National Government does not
need it? Can 1t be wise to continue the
direct tax on property and at the same
time command 4 hurtful luxury like spir-
its to go tree-a luxury whose taxation
! Expresses no oneI Customs revenues the
National Government monopolzes; eX-
else is open in theory to both State and
national use in taxation, but in practice
the national authority alone can levy an
excise tax on whisky. No State can
/ SudIu us DOIutIS against NulShy lGOu
other States, or make an economical col
/ lection of such tax within its own roye-
! nue.. The Federal machinery for the col
| lection of this revenue is in full operation,
and a bill of ten lines could direct the
| Secretary Of the Treasury to pay the
/ whole of it, less the small expense of col
/ lection, to the States and Territories in
/ the proportion Of their population, and to
/ continue it permanently as part of their
/ regular annual revenue,
A PERMANENT RESOURCE.
Such a plan would give the revenue
| from a specific tax wholly to the States,
and would not depend upon a chance sur
| plus or an accidental remainder in the
/ National Treasury. 1t would make the
tax on spIrituOus and malt liquors a per-
manent resource to all States, enabling
! them thereby to definitely readjust and
reduce their own taxation. Each State
could most wisely use its share according
4 to its own necessities.
SHARE OF EACH STATE.
In table annexed to his letter, Mr.
Blaine shows that the share of each State
and Territory, on the basis of population.
would be as follows: