The Helena independent., 1893-07-03
WAYS TO RAISE TAyEs.

|
vast pension payments and other expen-
ditures OF government. is problem to
| which political economists are now ad-
dressing themselves. Mr.. Edward AT
kinson, the Boston manufacturer and
statistican, has just published his solu-
tion Of 1t. He says that in the last fis-
cal year the consumption Of beer
amounted to nearly 100000 barrels Of
thirty-one gallons each, on which the
present tax is 81 a barrel, less five per
cent discount when stamps are bought
in large quantities. II this discount
were not given the gain in revenue
would be s1,50O,OOo year. Why should
not the tax on beer be doubled at once
so as to cover the last increment OF first
payments OF pensions from June 80 to
Dec. 81, 1894, and thereafter kept at 50
for perhaps two or three years in order
to cover the possibility Of reduction of
customs revenue in the transition per-
iod
The tax on beer is least costly in col
lection, it is safe from evasion, it bears
very low percentage Of the price to
consumers, and even at double the pres
ent rate it would not become any appre-
ciable burden upon them. The present
tax does not exceed four per cent on a
half pint Of beer when retailed at five
cents glass, about one-fifth Of cent a
glass. If the tax we're doubled it would
not exceed eight per cent, or less than
half cent on each half pint Of beer.
The additional revenue would be from
s3o,0oO,OO0 to s35,OOooo0 in 1s94-95 for
twelve months.
Mr.. Atkinson has prepared table to
show that since specie payments were
resumed in 1879, the revenue from liq-
uors and tobacco, domestic and i'm
ported, has increased yearly, having av-
eraged $3.50 per head Of population
from 1879 to 1892, and now being more.
Normal expenditures Of the government
for the same period, aside from interest
and pensions, have amounted to s253
per head. Internal revenue from spirits
has sustained the civil service; from to-
bacco, the army has been sustained, and
revenues from beer have more than sup
ported the navy. The customs revenue
from spirits, wine and tobacco have
more than covered all average expendi-
lures on rivers and harbors, and, until
very recently, upon the construction Of
vessels added thereto.
Upon this experience Of fourteen
years, sustained by the figures by nine
months revenue in the present fiscal
year, rule may be predicated in tho
following terms:
The normal cost of government, in
cluding average Appropriations for rivers,
harbors, public works, and naval con-
struction, is diminishing per head.
The revenues from liquors and tobacco
are increasing per head. These specific
sources Of revenue may therefore be set
apart for the purpose of meeting all nor
NAL expenditures
The miscellaneous permanent receipts
are now about equal to the interest on
the public debt.
These two sources of revenue COM
bined will this year cover all the regular
ordinary expenditures and the interest
on the public debt, with an excess which
will be nearly, if not quite, equal to the
contract obligations for the construction
of naval vessels, public improvements,
and for making large guns which were
entered into by the previous congress,
but which mature In this and tho next
fiscal years. The bounty on sugar may
cause small deficiency for the present
year only.
Mr.. Atkinson argues that If a reformed
tariff measure should be framed with a
view to yielding in its first year $780,
600 900 from imports other than liquors
and tobacco, it would probably yield
sufficient excess to cover tho small re-
mainder Of tho first payments Of pensions
in cash, but 1t would be safer to make
temporary provision for this. There
after the increasing excess of revenue
would yield SO large surplus over the
diminishing ponsion roll as to enable the
treasurer to pny or purchase all tho out
standing bonds bearing interest within
tho next ten years. Tho objective point
of practically free trade is. therefore,
within view in ten to fifteen years, in
which interval our bonded debt will all
have been paid.
If the tax on beer were increased from
two-tenths to four-tenths Of cent Der
half pint glass, yielding s3O,OOo,OOO 10
S3500O000, that substitution would
make it feasible to put about one- half
the articles named in the present tariff
on the free list, but such radical change
is not contemplated in this analysis.
Tho present purpose ia to make begin
ming upon 30 sound and sure a basis as
to secure the active support or tacit as
sent OF reasonable mon of both political
parties ies-disregarding the doctrinaries
on the one side and the intolerant advo-
| Gates of Mckinleyism on the other-to
the end that the greatest benefit may be
secured to the greatest number with the
least injury to those who have been
placed in their present condition against
their own will.
Ii We assume that imports in the fiscal
year ending June 80, 1891, under the
present acts will increase only seven per
cont, against l4l5 per cent increase in