The sun. [volume] (New York [N.Y.]) 1833-1916, 1893-09-12
THE REVENUE PROBLEM.
David A. Wells Shows How o. Three co-s-
r.odities aahS, 600 600 Can ne RAISED.

WASHINGTON. Sept 1.-THE Hon. David A.
Wells. the veteran tariff reformer. has sub
mitted report to Secretary Carlisle In an
swer to the Secretary's request for an opinion
as to the expediency. from strictly revenue
point OF view. OF maintaining or changing the
present internal revenue taxes on distilled
spirits malt liquors, and tobacco" Mr.. Wells's
con lus ion ms are as follows:
THE wisest fiscal policy for the Federal
Government certainly for tho immediate
future. would seem to be to impose the maxi
mum rates OF taxation on distilled spirits. fer
mented liquors. and tobacco. that will not cre-
ate. in face OF efficient administration and
severe penalties. undue temptations for
revenue evasions. In the case OF distilled
spirits on which the existing rate. under the
most favorable conditions OF production. 10
always In excess OF 300 per cent. oil their first
cost or taxable unit this line seems to have
been absolutely ignored: but as the exper-
fence Of recent years shows that the revenue
from this source Is increasing in ratio equal
or In excess OF the increase OF popu-
lation. and the amount OF Illicit pro-
duction comparatively small. any change
in the present tax would seem clearly In
expedent. On the other hand, in tho case Of
fermented liquors and tobacco. the existing
taxes are far below the safe line Of expediency.
and might be advanced to the extent Of ST. per
81 gallons or one-fifth of cent on the half
pint. in respect to tho former. and in the latter
advantage to our national revenue and to
TEN. Certainly. IL additional revenues to meet
present existing and extraordinary require
be difficult to show whore an i'm mediate an.
nual tncrement-with n certain large annual
increase OF the same in the future could be
obtained with less OF expense and popular
friction, than by the tax notifications sug-
Mr.. Wells says that the existing customs
duties on the imports OF spirits. fermentec
liquors; and tobacco are exceedingly high and
internal revenue taxes On tho same. and can
undoubtedly be modified to some extent to
the advantage OF the revenue.
Mr.. Wells estimates that by the changes he
llanors would be increased from S32.OO0.00O
10000 to S60.0Q0.O00. Also that the customs
Woa m isps I'd
$4,000, 600. and from tobacco from S13.OO0.-
600 to Sl6.00O.000. The aggregate receipts
from internal revenue taxes and customs
duties on these, three ommodities. he thus
600 to S245. 100000.
1t is therefore obvious. he says. that from
taxes iudiciously imposed on only three COM
modities or branches Of industry. the Federal
tainly. economically and with less burden and
disturbance to ita people than by any other
form OF levy. collect an annual revenue suifl-
cient TO defray all Of its ordinary expenditures.
including interest on all its debts. and have in
addition an annual surplus OF near $50 0O0-
600. leaving it's total revenue from other
sources e.. import duties. less those collect
ed from spirits beer. and tobacco and receipts
from permanent miscellaneous sources aggre-
eating about 5000. 900. available for the pay
ment OF pensions and for other purposes.