Huntsville gazette., 1893-09-16
RAISING REVENUE.

4
heformer, Tells How to Do It-DistiIled
ana Fermented Liquors and Tobacco
ohould be So Taxed as to Increase the
Receipts from S1SI 100000 to S245,-
100000, Without Inviting Fraud.
WASHINGTON, Sept 12.-Hon. David
A. Wells, the veteran tariff reformer.
has submitted lengthy report to
Secretary Carlisle in answer to his re-
| quest for an opinion as to the expe-
dlency, from 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
we're penalties, undue temptations
for revenue evasions. In the case of
distilled spirits, on which the existing
rate under the most favorable condi-
tlons 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-
perience of recent years shows that
the revenue from this source is increas-
ing in excess of the increase of popu-
latlon, 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
liquors and tobacco the existing
taxes are far below the safe
line of eXpediency and might
one dollar per thirty-one gallons, or
one-fifth of 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 simplitcation
of our whole fiscal system. Certainly,
if additional revenues to meet present
existing and extraordinary revenue re-
quirements 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
tanned 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
+ov
on the same, and can be 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 fermented liquors the rela-
tive rates are twenty and three-twen-
ty-ifths 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 ex-
ceed the excise Gnternal revenue)
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 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
nent is defrauded of the difference in
relative taxation and this is believed
to be very considera bic.
Mr.. Wells estimates that by the
changes he proposes, the internal rev.
enue from fermented liquors would be
increased from s33, 000,00 to S64, ,000,-
O0O and from tobacco from S32, ,000,0 900
to $50, 600, 900. Also that the customs
revenues from imported spirits, wines
and beer, would be increased from So
600, 600 to $40, 900, 900, and from tobacco
s13, 900, 900 to SIG, ,OOO,O 900. The aggregate
receipts from internal revenue taxes
and customs duties on these three COM
nodities he thus estimates would be
increased from s1s1, 900, 900 to s245, ,O09,-
OO0
1T Is therefore obvious" he says,
that from taxes judiciously imposed
on only three commodities of the
branches of industry, the federal gov
ernment can at the present time
certainly, economically and with less
burden and disturbance to its people
than by any other form Of levy. collect
an annual revenue sufficient to defray
all of its ordinary expenditures, in
cluding interest on all its debts, and
have in addition an annual surplus OF
nearly $50 900. 900, leaving its total rev
enue from other sources-i. e., import
duties less those collected from spirits,
beer and tobacco, and-receipts from per-
n1anent miscellaneous sources, aggre-
eating SO, 900, 900, available for the pay
ment of pensions and for other pur-'
rosesn