Omaha daily bee., 1890-02-06
WY TAX REELECTION Way FAIL.

WHY TAN REDUCTION MAY FAIL.
Unless congress sets its face firmly
against most OF the projects for increas-
ing the expenditures OF the govern
ment, instead OF reducing the burden
of taxation it may become necessary to
find additional sources OF evenue
Measures already introduced will swell
materially the demands on the treas
ury, and others contemplated, II they
should carry, would so increase the ex-
ponditures rs not only to use up the
present surplus, but in all probability
produce a deficit. Never in the his
tory OF the government has the tend
ency to extravaganza in congress been
more marked than at present, and there
is very great danger that the limit Of a
wise prudence and conservatism will
be overstepped.
There is no doubt that the dependent
pension bill which has been favorably
reported to the senate will pass, and it
is estimated hat this will call for an
annual expenditure, in addition to the
ninety million dollars now paid out in
pensions, OF from seventy to one hun
dred million dollars a year. The pro-
posed expenditure for seacoast defenses,
for which a bill has been intro
duced, is twenty million dollars a
year, and il is contemplated to expend
a like sum for a term OF years on the
navy. The prospects for the Blair edu-
cational bill, which provides for au an
nual outlay of ten million dollars, are
uncertain, and it perhaps may safely
be omitted from the calculation. The
proposal to pay steamship subsidies, if
successful, will require an annual pay
ment out of the treasury OF four or
five million dollars for the next
year or two, and how much there
after it is impossible to say. Then
there are projects for constructing
national prisons, postotiice buildings,
and erecting new bureaus, which in the
aggregate would take many millions
out Of the treasury.
The present available surplus is only
about twenty million dollars, sufficient
tn provide for the repayment of the di-
rect taxes collected from the states by
the government in 1861, should con-
gress adopt the bill for such repay
ment, as it Is expected to do. In that
event it is likely the current fiscal
year of the government will close with
out any available surplus in the treas
ury. Placing the extraordinary in
come of the government at forty
four million dollars, as estimated in the
report of the secretary of the treasury,
it will be seen that the additional ex-
pcnditure under the dependent pension
bill would take considerably more than
this amount, so nat if all the other pro-
jects for increasing the demands uDon
the public treasury fail there must be a
deficit unless great reductions are made
in the present expenditures.
IT is therefore apparent that the out
look for u reduction of taxes is far from
%reassuring. The pressure upon con-
gress for the passage OF the dependent
pension bill will be very great, and it is
not probable that the almost unanimous
demand of the old soldiers for this leg
islation will be refused. But further
h this congress cannot go on increas-
ing expenditures without rendering
impossible any reduction in the reve-
nues of the government. The situation
is very unpromising for any relief from
the burden of taxation which every
year Expresses the people more heavily
and grows steadily more effective as a
check to enterprise and a barrier to na-
tional progress and prosperity.