Omaha daily bee., 1894-01-19
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SOLICITUDE FOR WHISK

The democratic revenue program has
been framed with a careful regard for
the whisky interests, with which so many
members of the democratic party hold
intimate relations. Whisky has from
the earliest days of the republic been
one of the chief objects of internal taxa
tion by the federal government and has
been the occasion of more than one con-
troversy in and out of congress. Its
first imposition led to the famous
whisky insurrection in western
Pennsylvania, which was only pat
down by the prompt and ener-
getic action of Washington and
Hamilton. When the great financial
demands OF the late war forced them
selves upon congress whisky was among
the first articles to which the govern
ment turned as proper source of in
creased revenues. The amount of the
whisky tax has several times been al
tered, but its fruitfulness in yielding
large amounts of revenue has prevented
it's abolition, even when the surplus in
the treasury was at it's highest.
Now that deficit stares the treasury
in the face, to be enlarged still further
by the proposed tariff ''for revenue
only" whisky might afford an easy solu-
tion to at least a large part of the finan-
cial problem. A moderate increase
of the whisky tax would give quick re-
turns, so much needed at the present
moment, and could be adjusted to bring
into the treasury any reasonable amount
that may be required. 1t, together
with a few minor expedients, would
Immediately do away with ali necessity
for an odlous income tax. But the demo-
cratic ways and means committee is
enamored of the income tax, and at the
same time entertains tender solicitude
for whisky that forbids any such action.
What it proposes is quite different.
The present tax of 80 cents per gallon
is to be raised to 81 per gallon,
but to compensate the distillers
for that the present bonded period of
three years is to be increased to
eight years. This additional tax is to
be collected on all goods now in bond,
Notwithstanding the claim made in some
quarters that in receiving whisky in the
government warehouses the govern
ment has entered into contract to re-
deliver it on the payment of the then
existing tax. This technicality will be
willingly waived by the distillers, who
are only too anxious to have the bonded
period heightened, The tax is not pay
able until the end of that period, and, in
the meanwhile, each years delay means
so much added to the value of the
whisky in store. For 10 cents then the
distiller gets the use of 80 cents for five
years for every gallon of whisky now in
bond, while the value of his whisky
steadily increases.
There is one way to retain the prin-
ciple of tho prese mt tax and to obviate
this rank discrimination in favor of the
distillers. The democratic party in con-
gress has been harping so strenuously
upon the beauties of ad valorem taxation
when applied to import duties and has
proclaimed its great advantages as in
surfing the same rate of taxation on the
articles consumed by both rich and poor.
The specific duty, on the other hand,
has been denounced as imposing heavier
burdens on cheap than on dearer
goods, Now the whisky tax is a
specific tax. 1t demands 80 cents
for each gallon of whisky, good or bad,
new or old, valuable or worthless.
Apply the ad valorem principle to
whisky in bond and the government will
be able to profit along with the distiller