Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1893-09-19

IL 10 10 be feared that the dsstiny Of the
Hon. David A. Wells 10 70 fashion for the
Democratic party plans Of taxation which
are altogether too sensible for adoption. Ia
his nYst endeAvof 70 serve the Democrats of
This state he proposed scheme Of local
| taxation which was 20 reasonable that Il
| obssinea TO favor Whatever. He nox
enaeavoys to meet the most troublesome
Of all problems fer the party in power.
namely. how increased revenue can be
raised. II IL only just to gay that his sug-
| yestions from an economic point Of yie~
have much merit. He reports 10 Secretary
| Carlisle that the tax on distilled liquors
IL sirpzdy 20 high that an attempt to ~
cure greater revenue from that source
you'd be likely 70 prove selfdefeafin2
Bus he thinks the tax on beer can safely
be doubled, and the TAI on tobacco raised
10 the rates Of 1882 and he believes that an
additional revenue Of $50 900 600 can be
Immediately secured.
The economic phase Of this question. no
one will need TO be told differs widely from
lts political aspect. In a recent editorial
The New York Times declared thai
There il no plan Of immediate new taxa
ton that il not either financially uncertain
or politically unsafe" Mr.. Wells devotes
letter Of over six columns To his reasons
for believing that increased taxation OF
beer and tobacco would not be
financially uncertain. Presumably the
objection 10 these taxes was that they would
be politically unsafe, but this Mr.. Wells
does 20, discuss. There are those who will
hardly accept bis statement that $50 600 600
more can BIZ collected each year by the tax
on beer ethout materially diminishing the
profits Of the brewers or the wholesale or
retail dealers" Somebody would have 10
pay the additional $50 900 900 and it seems
clear that the consumers would not.
Mr.. Wells shows that 1876 glasses or half
finis in q barrel now bear a tax OF only
9th Of cent per glass, and double the tar
would still be two small a sum to be added
to the price charged consumers. Even when
beer il sold by the quantity
to employees at / 81 cents per
bali pint tie brewer gets about % per bar
rel, whereas Mr.. Wells says, Beer Of good
quality could be bought during the last
year 10 quantity or At Wholesale in New
York or IFS vicinity for s5.25 per barrel !"
so that there would be little occasion for
taking the additional tax from consumers
rather than from the liberal profits. For
most of the beer consumed somebody re-
ceiyes ) cents glass, or nearly s25 per
barrel, so that the proposed additional tax.
though n large sum. could be borne without
distress. Mr.. Wells states that the bust
ness Of brewing is one of the
most successful industries, that par
tcipation in it has been regarded
by foreign capitalists As one of the most at
tractiye Investments in this country. and
that no branch Of business returns larger
profit on the labor and capital employed
than the retailing Of malt liquors. Hence it
is recommended that the tax be raised from
81 to 81 per barrel.
The reasoning As to tobacco is less con-
elusive. II Is true that the reductions of
taxes in 1888, and again in 1886, and
again in 1890. have cut down the revenue
about SO 600 900, as Mr.. Wells believes.
and he urges that the taxes on this
commodity are raia'ively higher in
other countries, and that such tax il not
obligatory, but in the nature of voluntary
assessment on the part of the consumer.
Mr.. Wells fails at this point to consider
how far the great increase in consumption
may have been due to past reduction of
taxes. or how much consumption might de-
cline If the taxes of 1889 were restored.
But he is doubtless right in the belief that
large increase of revenue would be OBJ
tanned, provided the country were prosper
Gus and the purchasing power of the wage
earners were not diminished.
The whole plan of Mr.. Wells is open to crit
icisn because it assumes rate of consump-
ton which cannot continue when thousands
of mills and factories are closed. The
decrease Of a quarter In internal revenue
receipts in August suggests how easily Sf0,-
600 900 Il year might be taken off the re-
ceipts from taxes now in force, and in such
state of domestic industries any increase
in the cost Of take d products would be like
ly to render the shrinkage in consumption
still greater. Yet no better way has yet
been suggested of raising the additional
revenue which the government requires,
excepting the simple one of restoring per
manently the industrial and economic con-
ditions that existed in October, 1899.