The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1893-12-21
REVISION OF REVENUE LAWS.
Specific Duties Condemned-Taxes ON
Spirits. Capital, Etc, Recommended.

REVISION OF REVENUE LAWS.
Specific Duties COndemned-Tnxes ON
Spirits. Capital, Etc, Recommended.
THE necessity for a comprehensive re-
vision of our tariff laws in the interests of
greater Industrial and commercial freedom
need not be urged at great length upon the
present Congress-, one branch of which has
been recently chosen by the people with
that object distinctly in view, nor would it
be appropriate here to discuss TO any rcon-
siderable extent the particular alterations
that ought to be made in the free and du-
table schedules in order to make the re-
vision conform to the requirements of the
situation because the proper or
the House of Representatives is engaged
in the preparation of a measure which will
probably be presented for the consideration
of that body before this report is made
But 1t Is not improper, under the circum-
stances. to submit some suggestions upon
the general principles involved in such Leg
lslation and the best methods of applying
them in order to secure. as far as possible,
equality in the distribution of the burdens
of taxation. and avoid. as far as possible,
the taxation of one citizen for the benefit
of another. or of one class for the benefit
OF another.
1.-The only proper purpose for which foxes
can be levied and collected b. the United
States Is TO raise revenue for the support
Of the public service and the payment of
public obligations, and it follows, as a plain
matter of justice. that no citizen should be
required TO contribute more than his equal
share towards the accomplishment or these
ends. While absolute equality is not at
cam ba de 1nIeF any sy nossihI oi 20 oaH carrec+ 't tbe
fagrant inequalities which characterize our
existing legislation: and in doing so, it Is
the imperative duty of those who are
charged with the responsibility of making
the revision to select such subjects for tax
alton and prescribe such methods of assess
ment and collection as will secure the nee
essary means for the support of the gov
eminent. with the least possible injury to
any part of the people. but without regard
TO the groundless approximations or un-
terests.
I'll equal distribution of the burdens Of
taxation depends not alone upon the rates
or duty imposed upon the different articles,
but largely upon the manner in which the
the law. The basis of the duty must be a
unit I'm some form and the question whether
IL shall be computed upon the weight, guam
tty, number or dimensions of the article.
or upon its actual value, is one which lies
at the very foundation of every proposition
to impose taxes, and upon it's determination
depends to a great extent the justice or
injustice OF every revenue measure. The
imposition of specific or compound rates Of
NIeF 10 OF bACOISlSltlL WIFI Tie true -DIll~
cipies OF just taxation that nothing but the
plainest necessity can justify il in any
ease. unless 1t be in a few exceptional in
stances, where all the articles taxed at the
same specific rate are so nearly equal in
value that the danger Of unjust discrimina-
ton is not greater than it would be IL an
oIlclal valuation were required. 1t is man
Hestly unjust to compel one citizen 10 pay
me same amount of taxation on a yard Of
cIotn worth 81 that another citizen pays on
a yard of cloth worth s.. In such n case
IL is evident that one has been taxed too
much Tor the support of the government or
.le otner mas been taxed too little, and the
law has not dealt fairly with them in a
matter which affects the equality of their
rights and duties as citizens.
"A tariff is a tax upon consumption and
the condition of those who are compelIed
| py poverty of means to purchase and use
lHe codrser ana cheaper grades Of goods
should certainly protect them against mn
Just determinations, even If it does not en-
utIe MIN TO some measure OF exemDtiOn
from the exactions of government. Taxa-
Ton according to value does Injustice TO
no one unless the rates are too high, or
are unequally adjusted upon articles of
the same general character and utility. IT
Is distinctly the American system of taxa
able by the people in all the States I'm their
laws for the assessment and the collection
o .ocaI revenues upon the ad valorem
method would be tolerated In any State of
the Union where the tax is imposed solely
Tor the purpose of raising revenue with no
Incidental or Interior object I'm view ef-
fecting the public health or morals; and il
you'd never have been tolerated in our
FEDERAL legislation. except in rare instances.
IL the use OF the taxing power had been
limited to the real purpose for which il
SPECIFIC DUTIES DENOUNCED.
A a means of concealing from the tax
payer the usual proportion which the
charge upon his earnings bears to the value
of the taxed article specific and compound
rates have been for many years Ingenious
ly employed to mask and perpetuate a
system which subordinates the interests of
the government to the exactions of private
individuals and corporations engaged in
particular industries and trades. But the
directions urged against the adj vaIorem
system or the tariff taxation are not gem
orally based upon the proposition that n
tacks the element of justice or equality,
put usually upon the grounds that IN is
difficult of administration, and that II
furnishes strong inducements for the com
mission of frauds and p~erjuries in order
10 secure false valuations OF imported
goods. While. there is some force in this
contention. | am not able to see how un-
equal taxation can be justified upon the
ground that the burdens upon the peonle
ought TO be increased in order that the
labors of public officials may be diminished,
or that the honest citizen should be pun
lshed I'm order to prevent the dishonest enc
from attempting to violate the law.
But the difficulties of administration
nave always been greatly exaggerated. and
so lar as they really existed i'm former
times: nave now been much diminished by
our increased facilities for ascertaining
market values in other countries and nv
the improved organization of our customs
service. This markets of the world have
Deen brought so near to each other by the
use OF steam and electricity that. as tn
all staple articles especially, il is not nov,
much more difficult To find their cost or
value abroad than at home; and If. under
these circumstances it shall be demon
Strated that official intelligence and in
teSrity cannot be safely relied upon for an
honest. collection OF the revenues under
the existing system of indirect taxation II
VIII become necessary to consider wherher
some other method cannot be devised TO
eminent. S'
so far as the inducements t., commit
frauds ana perJurieS constitute objections
the slightest examination of the subject
VIII show that they are much greater nm
is one of the most prominent features of
our existing legislation. than they could
possibly be under n purely ad valorem ar
fanSerent OF duties. The tariff law now
IN force imposes compound rates of duty
urOn a great many important articles in
common use among the people. and which
are largely imported from abroad. and i'm
every such case a tempting premium is
offered for fraudulent undervaluaJions by
the importer or cOnsignee. For instance.
on wooden or worsted cloths. Sha wis and
certain other manufactures of wool. worst
ed, or hair of the camel, goat. alpaca. or
ether ANNALS. valued at more than IN
cents and not more than 20 cents per Mound
the tax per pound is three and one-haIf
times the duty imposed upon a pound of
unwaShed wool Of the first class GS15
cents), and in addition 40 per cent. adj va
loren; but IL the goods are valued at more