St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1893-12-02
TOOFFSETT The DEFICIT
A Tax on the Incomes Of
All interpretations,
SUGGESTIONS AND LEGAciES
One Of the Most Favored
Schemes UP to Date.
WHISKY MAY GET A RAISE.
Senate Rules to Be Amended
to Expedite Business.
THE PUBLIC DEBT STATEMENT.

WASHINGTON, Dec. 1.-The meeting
of the ways and means committee today
was brief The estimates to be submit
ted showing the probable difference III
revenue that would result from the new
bill were not yet complete, and the
committee adjourned until Monday to
give Clerk Talbott and his assistants
further time. The labor CT estimating
the revenue that would be derived un-
der the new tariff bill Is very great, but
it has progressed far enough to warrant
the statement that oil the basis OF the
imports of 1892 the loss of revenue re-
sulting from the enactment of the new
bill. and the repeal of the Mckinley act,
would be about S60,00O,00O per an
mum. Of course, this estimate is
on the supposition that the I'M
ports under the new bill would
be no greater than under the
present law, supposition which the
Democrats by no means concede. 1t Is
the conclusion of Chairman Wilson and
his Democratic associates that importa-
tons will be SO Stimul2ted under the
new bill that the loss of revenue, de-
spite the radical reduction OF duties. will
not be over S35, 100000. This d. fcit it is
now proposed to make uD by q tax on
the incomes of corporations, t2X Oh
SUGGESTIONS and playing cards. and by
Increasing the tax on cigarettes aud
perhaps whisky. Mr.. Tarsuey, of the
ways and means committee, still cl!ngs
to the belief that the deficit cannot be
supplied ithout extending the income
tax to individuals.
Il don't think it can be done," said
he. without making the tax on net
earnings Of corporations excessive.
Such a tax of per cent would secure to
the government not more than $50, 000,-
COO, whereas the deficiency would be
nearly 100000. l can't see how to-
bacco can stand any greater tax. If the
rate on whisky is advanced 10 cents per
gallon, from that source there Will be
about 100000 more, which is still short
of the amount required. One source of
increased revenue that has to be
developed is the stimulation of lmporta
tionS that will result from the lifting of
our prohibitive tariff. Doubtless this
will greatly increase our revenues, but
] hardly think we could get along with
out help from the personal income tax.
If incomes of over $1,000 were taxed at
the rate of per cent it would put into
the treasury over S7,000,000, and that
would give US sufficient revenue. The
coinage OF the seignCrage, as L have
heard suggested, would not help the
matter. SO we are providing for per-
manent support of the government"
The Democratic members of the COM
mIttee on ways and means will meet
tomorrow afternoon 10 further consider
the income tax and internal revenue
schedules. There are still many rumors
afloat regarding the Intentions OF the
committee in relation to the whisky
tax, but the expressions of members of
the committee give no reason for be-
lievlng that the increase will exceed
10 cents per gallon, and some mem
bers think it doubtful whether there
will be any increase at all or
not. The subcommittee is debating the
adViSability OF making any increase in
the whisky tax applicable TO all whisky
OH hand at the time the new tariff law
goes into effect. Senator DOph, OF
Oregon, announces that when the new
revenue bill comes up for consideration
he will present an historical address
for the purpose of proving that the
United States never had any prosperity
except when there was a protective
tariff, and that from colonial days free
trade has meant debaSed labor.
Representative Holman said today
"There are practically three modes 10y
which the deficit could be made up: BY
issuing bonds, and thus increasing the
public debt; by an income tax, whicl
would realize from $4,000, 900 to $75, 900,
000, or by reduction of expenditures
In regard to the bond issue, l do not be
lieve any political party would survive
material enlargement of the publi
debt in time of peace. l hope that tha
will not be attempted at this time, for
nm confident that the great masses o
our people believe that the embarrass
mentS of our treasury is attributed, no
to insufficient revenues, but an indie
fensibe and lavish expenditure of pub
lie money. Ii the expenditures of ou
government are kept up to the presen
rate, | think the increased revenue re
auired should be provided by an Incom
tax. 1t is a just and equitable metho
Of raising revenue Ii the presep
Democratic congress, which is no,
wholly responsible for the expenC
ltures of the government, woul
go earnestly to work it would find n
difficulty in reducing the expenditure
OF the government so that the preser
late of interest revenue and propose
reduction of tariff taxation would ful
nish ample means to support the go,
ernment and meet the requirements q
the sinking fund. We cannot with homo
abandon the sinking fund. 1t was nc
intended as a guarantee TO the holder
of public securities, but a solemn Ell
gagement of congress 10 the people tha
the public debt should not be perma
nent, but should be eXtinguished on III
reasonable basis provided by the act
1862, under which the debt would
paid off within reasonable period
time. Exemption from debt is one
the guarantees Of frugal government
anu frugal government is the onI
guarantee we have of the perpetuatio
of our free institutions. j"