The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1885-09-23
Taxing the Capital Employed.

TO the Editor OF the Indianapol journal:
The laws which have been in existence for
more than Il hundred years taxing the liquor
traffic were based on a recognition of the fact
that the business occasioned large expenses in
civil government Whenever and wherever the
courts have been invoked to set aside those
statutes which have exacted special tax on this
business. they have held the laws constitutional
So the right to levy special tax the business
is well-settled one and on the ground that it
occasions the expense sought to be covered by
these special tax ievies. Now that the right
IS conceded, why may not the State
proceed to make the law equitable. e.. author
lze the special levy on the capital invested in the
manufacture and sale of liquor for drinking pur-
poses to be made large enough to cover the ad
ditlonal cost it occasions in civil administration
and the enforcement of public law2 If there is
only pretense at this now, why may it not be
made full and equitable2 1t would so tighten
the taxes of those not engaged in the business
for the profit there is in it as to make
the taxes of those engaged in laudable and
legitimate pursuits-the sober, Industrious
and frugal-much less than they now
are We repeat, this principle of government
is conceded by the courts in the adjudication of
the question everywhere. Why not make the
tax full and effective instead of only partial as
nows 1t Is easy to ascertain what per cent. of
the public taxes are used for other needs than
that occasioned by the liquor business The
Massachusetts Bureau of Statistics has shown
we'll how this may be done. And suppose We
take the facts gathered in 1882 by the Indiana
Bureau of Statistics for Marion county as
the basis OF at least a partial illustra
ton. to what would be the
result here. The Indiana Bureau. pages 90 to
2l5 report of 1892 showed that for one year in
Marion county the cost of liquor convictions and
other public expenditures occasioned by the
liquor traffic. was $40. 433. 49, To this NAV be
added prison expenses. paupers. etc, at least
duplicate of county is $500, 071.77 1t would
Total taxes Tax caused by
per annum. LIQUOR per annnn
w. H. English. ..-..S Sis, O07.2O $2,41367
W. s. Hubbard. 49, Z.597.40 4I772
SGSS MICE Mscarty s3sGas s ss9Ga
taxes collected goes to pay the expenses caused
by this liquor business. None of these gentle
men are engaged in the liquor business Why
should they be taxed to pay this expense
since they do not occasion any of IL, and wbv
not tax 1t all To those who reap large profits ont
of the business which occasions it-a business al
ready. and for centuries past, under the ban
of law. TO this it must finally come in such sec
tions as will not put the traffic away And
when we shall have such an equitable adjust
ment of the tax laws, it will be found that the
whole traffic has become Improbable, and the
capital invested in manufacturing and selling
will be Withdrawn and diverted TO new indus
tries. This is what $500, and $500, and 81, 900
taxes on the traffic mean now in various quar-
tiers, where they will have the traffic. The non
participants in the business curing such heavy
public burdens have rights that cannot be for
ever put off. JB.