The Forrest City times., 1893-09-15
RAISING REVENUE.

WASHINGTON, Sept. l2.-HOn. DdVld
 wells the veteran tariff reformer.
 nas n submitted lengthy report to
 s~oretarv Carlisle in answer to his re-
 oost for an opinion as to the expe- lorcv. from strictly revenue point
 at view. of maintaining or changing .be nresent internal revenue taxes on
 ,;s.ilIed spirits, malt liquors and to-
 baccos.
 Mr Wells conclusions are as follows:
 eTbe wisest fiscal policy of the gov
 .rrnent. certainly for the immediate
 t,tnre. would seem to impose the ,naximum of taxation on distilled
 sririts fermented liquors and tobacco,
 that will not create. in the face of
 aa3oient administration and se-
 were penalties, undue temptations
 for revenue evasions. In the case of
 distilled spirits, on which the existing
 rate under the most favorable condi-
 tions of production. is always in ex-
 oess of 300 per cent. of their first cost
 or taxable unit, this line seems to have
 been absolutely ignored; but as the ex-
 nerienee of recent years shows that
 the revenue from this source is increas-
 ipp in excess of the increase of popu-
 lation. and the amount of illicit
 products comparatively small, any
 change in the present tax would seem
 clearly inexpedient. On the other
 hand in the case of fermented malt
 liouors and tobacco the existing
 taxes are far below the safe
 line of expedieney and might
 be advanced-i. e., to the extent of
 one dollar per thirty-one gallons, or
 one-fifth of a cent on the half-pint-in
 respect to the former-and the latter
 at least to the rates imposed in 1882,
 with great advantage to. our national
 revenue and to a greater simplification
 of our whole fiscal system. Certainly,
 if additional revenues to meet present
 existing and extraordinary revenue re-
 ouirements for expenditures are need
 ed, it would be difficult to show where
 an immediate annual increment with
 certain large annual increase of the
 same in the near future. could be ob-
 tained with less expense and popular
 friction than by the tax notifications suggested
 "The existing customs duties on the import of spirits, fermented liquors
 and tobacco are exceedingly higher and absurdly disproportionate to the corresponding internal revenue taxes some extent to the advantage of the revenue. Thus, on imported spirits the duties are two dollars per proof gallon and the revenue tax eighty cents; on fermented liquors the rela- tive rates are twenty and three-twen- iy-hfths cents per gallon; on snuff and chewing and smoking tobacco, fifty, forty and thirty cents, respectively. Tn the United Kingdom. where the productivity of taxes has been care iuily studied, the customs duties ex- eeed the excise (internal revenue) taxes upon beer by sixpence (twelve eents) on thirty-six gallons, and upon spirits by fourpence (eight cents) per proof gallon. One effect of the main tenance of our excessively high duties on imported spirits is that greater opportunity is offered to operations through domestic producers to advance lhe price to domestic consumers, and another is that they encourage the domestic manufacture of limitations CT foreign spirits, which the American consumer is induced to use in place of the genuine article and the govern inent is defrauded of the difference in relative taxation and th:s is believed to be very considerable.
 MT. Wells estimates that by the changes he proposes, the internal rev ehue from fermented liquors would be increased from S33, 900, 900 to s6+, ,000,- oVO and from tobacco from s32, 900, 900 to S6O, 100000. Also that the customs revenues from imported spirits. wines dno beer, would be increased from S9,- o"O'oo0 to SIC, 1000, 900. and from tobacco |elo'ooo,OO0 to SIG, 900. .000. The aggregate 'eeeipts from internal revenue taxes ana customs duties on these three com uioallies he thus estimates would be increased from s1sl, ,OOO, ,O00 to S245, ,000,- It IS therefore obvious" he says,
 'nat from taxes judiciously imposed |oh only three commodities of the branches of industry, the federal gov '4hihent can at the present time ,erV Vainly, economically and with less |v1rden and disturbance to it's people 'nah by any other form of levy. collect "n annual revenue sufficient to defray fn o1 its ordinary expenditures, in
 iuuing interest on all it's debts, and [4aVe m addition m annnal surplus of