Evening star. [volume] (Washington, D.C.) 1854-1972, 1893-12-20

terials is that Of cheapening the necessaries
OF lie Tor the masses Of the people. Legis-
lation which unnecessarily Increases the
cost OF living Is wholly without justihca-
tion or excuse, and in the revision of our
revenue laws this Objectionable policy
should be wholly discarded in the interest
OF ooth labor and capital So long as the
government maintains a system of taxation
wnicn ai1ects the prices of commodities In
tne markets, IL should be so applied as to
exempt, or bear as lightly as possible upon
tnose articles which are essential to the
health and comfort of the people such as
1000 Clothing. and shelter, and upon the
toois ana implements of trade employed by
Luxuries and articles OF taste and fashion,
the use or which is entirely voluntary are
proper subjects Of taxation under any sys-
tenn OF raising revenue. and upon these the
rates may very properly be placed at the
highest revenue point. Such taxes do not
Ordinarily Impose much hardship upon those
VINO pay them. but taxes which diminish
Inc purchasing power of the laborer's wages
in procuring the necessaries of life strike
at the foundations of the social system, be-
cause the material welfare of ali our COM
mun;tes depends in large measure uoon
the prosperity and contentment of those
who labor In some form for their own sup
port.
The Estimated Revenues.
II the amount and value OF the importa-
tons Of the character of dutIable merchan-
disc should not during the fiscal year 1895,
exceed the amount and value of such i'm
portahons during the fiscal year 1893, the
receipts under the measure now pending
would be about sl22,000,OO0, but there are
strong reasons for the opinion that the
proposed reductions in the rates of duty
will encourage importstions to a very con-
siderable extent, and that, consequently
the revenue Will not be diminished in the
same proportion as the rates are reduced.
Moreover. experience has shown that I'M
der all our tariff legislation there has been
an almost constant tendency toward an
nuaI increases in the amounts ana values
OF dutiable imports. even though the rates
of dusy remained the same.
To what extent the importations will he
increased solely on account of reductions
in the rates of duty Ii il of course impos-
sible TO foresee. but Ii is reasonable to con-
clude that this cause, together with the
natural increase of our purchases from
other countries, will result in a much larg-
er revenue from customs in 1895 than is
indicated by mere comparison OF proposed
reduced rates with those under which the
collections were made in 1893.
am of the opinion that with proper econ
omy in public expenditures. which it is
hoped will result in a considerable reduc-
ton from the estimates. an increase of
$jO.OOO,OOO to the revenue for the fiscal year
1885, by the imposition of additional taxes
under the internal revenue system, will
supply sufficient means for the support OF
the government, and that this sum can be
raised without seriously disturbing the
business OF the country or doing injustice
to any part of the people. Many different
methods Of providing this additional reve-
nue. have been suggested and discussed
and after a careful examination Of the
whole subject have reached the conclusion
that II can be most conveniently and justly
raised by increasing the tax on distilled
spirits 10 cents per gallon, and by additional
| taxes on cigars and cigarettes. and the i'm
position OK new taxes on PLAYING cards
SUGGESTIONS, and incomes derived from in
vestments In stocks aad bonds OF corpora
tons and joint stock companies.
The increased tax on distilled spirits ci-
gars. and cigarettes should be imposed upon
all such articles IN existence and upon
which the revenue has not been collected
enable time should be allowed in the cases
of the new taxes. The propriety, under the
circumstances, of increasing taxes upon
distilled spirits, cigars. and cigarettes, and
the imposition of new taxes at a reasonable
rate upon playing cards and cosmetics and
perfumeries, will not. / think, be seriously
questioned. except by some OF the produc-
ers Of these articles. vino constitute COM
paratively a small part of the people. Taxes
which directly or indirectly increase the
cost Of the actual necessaries of life should
be avoided whenever ii is possible to DO So
but the consumers OF such articles as are
not essential to health and comfort ought
not to complain when called upon TO con-
tribute a part Of their voluntary expendi-
lures to the support OF the government
Taxes upon legacies and SUGGESTIONS and
incomes acquired from investments in
stocks and bonds OF corporations and Joint
stock companies are less objectionable in
their nature and in the methods of collec-
ton than any other excuses which IL is
competent for the United States to impose
upon incomes according to their actual
value or amount They are not inquisitor-
lei nor liable to evasion by the fraudulent
suppression OF facts. and they have the ad-
dltional merit Of being imposed entirely
upon that part of the citizens income
which is not earned by his labor or skill
but which. In the cases OF legacies and sue
cessions. is acquired by mere operation OF
law or by gratuitous bequest. and in the
cese OF incomes from investments in cor
pora tons and Joint stock companies. by the
simple earning capacity of his capita, as
such, without personal effort upon his part
Taxing Incomes.
When the necessities Of the government
compel II to resort to additional sources for
procuring revenue, II is but fair that IL
should make its acquisitions mainly upon
those whose possessions are Of such a char
acter as enables them to escape wholly or
partially, the general burdens Of taxation.
rather than upon those who are already
taxed substantially to the extent of their
ability to pay; and as incomes from capital
invested in the stocks and securities OF the
institutions mentioned are not now subject
to taxation under any law OF the United
States. or the laws Of the several states
except In few instances. IL cannot be con-
sidered unjust to exact small percentage
OF their amount for the public use Ii Is a
generally recognized fact that capital I'm
the form of money. bonds. and other evil
oences OF debt does not usually, by reason
Of its intangible and transitory nature
bear Its due proportion Of the burdens Of
taxation under the revenue laws of the
several states and municipalities as COM
pared with real estate and visible personal
property;and while no discrimina ton should
be made against it. whether IL be represent
ed by corporate or other Investments there
appears to be no good reason why the con-
tributions for the support of the public
service generally should not be equalized
as nearly as possible by including this kind
OF property in the federal revenue system.
But IL IL shall be said that there is no hct-
ter reason for imposing a tax upon incomes
derived from Investments OF this kind than
there would be in taxing incomes from other
sources, the answer is that these institu-
lions are invested by law with valuable
franchises, privileges, and immunities NOT
enjoyed by the individual citizen. and thar
these frequently contribute more largely TO
their earning capacity than the character or
value OF their other property. The holders
OF their stocks and securities are IN this re-
spect more favored than their fellow cIti-
zens generally, and the exchangeable yalue
OF their shares and bonds, as well as the
annual incomes derived from them. are
greatly increased because they are so
favored.