The state republican. (Jefferson City, Mo.) 1871-1896, 1893-09-14
RAISING REVENUE.

Hon. David A. Wells, The veteran Tariff
Reformer, Tells How to DO It--Dlstilled
and Fermentcd Liquors aud Tobacco
Should be So Taxed ns to Increase tho
Receipts from sis1 100000 to s2iJ,-
100000, Without Inviting Fraud.
WASHINGTON, Sept. f2. Hon. David
A. Wells, the veteran tariff rcfoTmer,
has submitted a lengthy report to
Secretary Carlisle In answer to his re-
quest for an 'opinion as to the eXpc-
diency, from n strictly revenue point
of view, of maintaining or changing
the present internal revenue taxes on
distilled spirits, malt liquors and to-
baccos."
Mr.. Wells conclusions are as follows:
"The wisest fiscal policy of the gov
ernment, certainly for the immediate
future, would seem to impose the
maximum Of taxation on distilled
spirits, fermented liquors and tobacco,
that will not create, in the face Of
efficient administration and Sc
vere penalties, Undue temptations
for revenue evasions. In the case of
distilled spirits, on which the existing
rate under the most favorable condi-
tons of production, is always in ex-
cess of 800 per cent. of their first cost
or taxable unit, this line seems to have
been absolutely ignored; but as the ex-
pcrience of recent years shows that
the revenue from this source is incrcas-
ing 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 incxpcdient. On the other
hand in the case Of fermcnted malt
liquors and tobacco the existing
taxes are far below the safe
line of expcdicncy and might
he advanced. G., to the extent of
one dollar per thirty-onc gallons, or
one-fifth of Il cent on the half-pint-in
respect TO the former-and the latter
at least to the rates imposed in 1852,
with great advantage to our national
revenue and to a greater simplitication
of our whole fiscal system. Certainly,
If additional revenues to meet present
existing and extraordinary revenue re-
quircmcntS for expenditures are need
ed, it would be difficult to show where
an immediate annual increment with
a certain large annual increase of the
same in the near future, could be OBJ
tained with less expense and popular
| friction than by the tax notifications
suggested.
"rhe existing customs duties on the
import of spirits, fermentcd liquors
and tobacco are exceedingly higher
and absurdly disproportionate to- the
corresponding internal revenue taxes
on the same, and can he modified to
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 fcrmentcd liquors the rela-
tive rates are twenty and thrce-twcn-
ty-fifths cents per gallon; on snuff and
chewing and smoking tobacco, fifty,
forty and thirty cents, respectively.
"In the United Kingdom, where the
productivity of taxes has been care
fully studied, the customs duties cx'
cesd the excise (intcrnal rcvenue)
taxes upon beer by sixpence twelve
cents) 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 "A greater
opportunity is offered to operations
through domestic producers to advance
the price to domestic consumers, and
another is that they encourage the
domestic manufacture of limitations
of foreign spirits, which the American
consumer is induced to use in place OF
the genuine article and the govern
incnt is defrauded of tho difference in
A. 10 Lalt Il
to be very considerable.
Mr.. Wells estimates that by the
changes he proposes, the internal rev
enue from fcrmented liquors would be
increased from $33, 900, 900 to $4,000,
900, and from tobacco from S32, 200, ,0O(
to sGO, ,OO0, 900. Also that the customs
revenues from imported spirits, wines
and beer would be increased from 80,
OOO, 900 to $40, 900, 900, and from tobacco
sl3, ,OO0, 900 to s16, 900, 900, The aggregate
receipts from internal revenue taxes
and customs duties on these three com
modities he thus estimates would be
Increased from $751;, 600, 900 to S245, 900,
000
at Is therefore obvious he says
"that from taxes judiciously imposed
on only three commodities of th
branches of industry, the federal gov
; ernment can at the present tim
: certainly, economically. and with les
) burden and disturbance to its peopl
: than by any other form of levy, collec
: an annual revenue sufficient to defra.
all of its ordinary expenditures, in
: cluding interest on all its debts, ant
have in addition an annual surplus o