The Newberry herald and news. (Newberry, S.C.) 1884-1903, 1893-09-20
WELLS ON INTERN AZ TAXES.
The Tariff Reformer Tells How to Increase
the Revenue.

tariff reformer, has submitted lengthy
report to Secretary Carlisle in answer
to his request for an ''opinion as to the
expediency, from q strictly revenue
point of view, of maintaining or chang
ing the present internal revenue taxes
on distilled spirits, malt liquors and
tobacco"
Mr.. Well's conclusions are given as
follows:
"The wisest fiscal policy for the Fed
eral government, certainly for the i'm
mediate future, would seem to be to
impose the maximum rates of taxa
ton on distilled spirits, fermented
liquors, and tobacco, that will not Gre
ate in face of efficient administration
and severe penalties, undue tempta-
tions for revenue evasions. III the
case of distilled spirits, on which the
existing rate under the most favorite
conditions Of production is always in
excess of 300 per cent. on their first
cost, or taxable unit, this line seems
to have been Absolutely ignored, but as
the experience of recent years SHOWS
that the revenue from this source is
increasing in ratio equal to or in excess
of the increase of population, and the
amount of illicit product comparatively
small, any change in the present tax
would seem clearly inexpedient.
"On the other hand, in the case Of
fermented liquors and tobacco, the ex-
isting taxes are far below the safe line
of expediency, and might be advanced,
i. e., to the extent Of 81 per gallon or
one-ffth of cent on the half pint in
respect to the former, and in the latter
atsleast, to the rates imposed in 1882,
with great advantage to our national
revenue and to greater simplifcation
of our whole fiscal system. Certainly,
if additional revenues to meet present
existing and extraordinary require
ments for expen litures are needed, it
would be difficult to show where an
immediate annual increment-with a
certain large annual increase of the
same in the future-could be obtained
with less of expense and popular fric-
ton than by the tax notifications sug-
gested.
"The existing custom duties on the
imports of spirits, fermented liquors,
and tobacco are exceedingly high and
absurdly disproportionate to the cor
responding internal revenue taxes on
the same, and can undoubtedly be
modified to some extent to the ad-
vantage of the revenue. Thus, on i'm
ported spirits the duties are 81 per
proof gallon and the internal revenue
tax 90 cents; on fermented liquors the
relative rates are 90 cents and 32-5
cents per gallon, and on snuff, chewing
and smoking tobacco, so aud 40 cents
aud cents, respectively. In the
United Kingdom, where the produc-
tivity of taxes has been carefully stud
led, the custom duties exceed the eX-
else (irternal revenue) taxes upon beer
by Cd. Q2 cents) on thirty-six gallons,
and upon spirit 4d. Is cents) per proof
gallon.
Zone effect of the maintenance Of our
excessively high duties on imported
spirits is that greater opportunity is
offered to combinations (trusts) Of do
mestic producers to advance the price
, of domestic consumers; and another is
that they encourage the domestic man
| ufacture from cheaper materials of imi-
tations Of foreign spirits, whereby the
American consumer is induced to use
spurious in place of the genuine arti-
Gle, and the Government is defrauded
of the difference in relative taxation,
an amount believed to be very consid-
erable."
Mr.. Wells estimates that by the
changes he proposes the internal reve-
nue. from fermented liquors would be
increased from $4,000, 900 to S6+,000,-
| 900, and from tobacco from So, ,0OO,O 900
to s6O,0O0,00G. Also that The customs
revenues from imported spirits, wines
and beer would be increased from 3d.
OoO 900 to SIC, 10000, and from tobacco
from S13,OO0,0O0 to Sl6,0oo,0Oo. The
aggregate receipts from internal reve-
nue. taxes and customs duties on these
three commodities he thus estimates
would be increased from $3.50, 1000, 900 to
so45 100000. tie concludes:
SIT is therefore obvious that from
taxes judiciously imposed on only three
commodities of branches Of industry,
the Federal government can at the
present time certainly, economically,
aud with less burden and disturbance
to its people than by any other form OF
levy, collect an annual revenue sufti-
cient 10 defray all of its ordinary e1-
penditures, including interest on all its
debts, and Lave in addition an annua!
surplus of $50, 600 OC0, leaving its total
| revenue from other sOulces-l. o, I'M
port duties, less those collected from