The Vermont watchman. [volume] (Montpelier, Vt.) 1883-1911, 1897-03-24
POLITICAL.
The Tax on Alcohol.

we'll as the tariff laws, and under such
circumstances it is incumbent upon the
committee to consider whether or not
the present methods of taxing alcohol
should not be revised. Commercial
that is, high test-alcohol has been SELL
ing lately at the distilleries, before the
duty has been paid, and without charge
for the packages, at the rate of tell
cents q gallon. The tax upon this is
SO OF q gallon, so that the impost is
equivalent to tax burden of more
than 2 600 per cent. There is probably
no tax imposed by the United States,
whether in customs or internal reve-
nue., that begins to compare with this
in extraordinary proportions. 1t is alb
surd on the face of ii that alcohol used
in, say, the manufacture of varnish, or
in the preparation of medicine, should
be made to cost by tax So II gall
lon, when without the tax the price
would be ten cents gallon. The only
reason that can be advanced for this
impost is that, as beverage, our own
government and all of the civilized gov
ernments of the world believe that al
cohol is a commodity which can be
easily made to pay an enormous tax.
But alcohol as basis for varnish does
not call for tax any more than tur-
pentine would when similarly en-
ployed, and the only reason urged
against exemption in these respects is
that if determinations were made it
might be difficult for the government
to prevent the practice of fraud; that
is, persons would obtain exemptions
from the tax and would then use the
al II Nh.,a hary
of in the trades and arts. 1t is asserted,
and experience proves the assertion to
have good basis to rest upon, that in
other countries of the world it is found
possible to make this division; to i'm
pose a considerable tax upon alcohol
which is used as beverage, and yet to
make remission of tax in those cases
where the alcohol is used for o.her
than drinking purposes. 1t is, more
than this, urged that the govern
ment should grant to our domestic
manufacturers, as it does not at the
present time, the right to receive re-
bate on the alcohol used in manufactur-
ing goods intended for export. II an
American manufacturer imports his al
cohol and thus uses it, he can, when
the goods are exported, claim a rebate
from the government, but if he buys
American-made alcohol and thus en-
ploys it no rebate is accorded him. The
entire subject is one calling for reason
able congressional action. The ques-
ton of rebates and exemptions has
been made study by congressional
committee, of which Senator Plat of
Connecticut is chairman, and with the
data relating to the experience of for
eign countries that have been collected,
the ways and means committee should
be in position to formulate law that
would remove the burden now imposed
on legitimate business enterprise, while
still securing for the government the
revenue that it needs by heavy taxes
upon alcohol consumed as beverage.
Boston Herald.
A review OF the objections to untaxed
alcohol leads the Boston Advertiser to
these conclusions: "There is but sim
gle lie ultimate and defensible reason in
the lot, and that is the argument that
alcohol cannot be exempted from taxa
ton for legitimate purposes without
opening the door to large frauds in the
escape from taxation of properly taxed
spirits. Every other reason urged is
really reason for free alcohol, rather
than against it, The tariff act of 1894
provided for rebate of the tax paid on
alcohol used in the arts. Secretary
Carlisle, Induced by the big revenue
deficiency, refused to make any attempt
to enforce the law, and influenced Con-
gress to repeal it. This repeal was
coupled with a provision for joint
special committee to investigate the
matter in all it's bearings, and see if
law could not be framed which would
allow untaxed alcohol in the arts, with
out danger of serious fraud. At the
head of that committee is Senator o.
II. Plat OF Connecticut. The investi-
cation made by the committee has been
thorough and exhaustive. What the
conclusion will be cannot now be
known. But if the committee fiud, as
they are most likely to do, that other
nations succeed in administering such
a law, and find great national advan-
tage in 80 doing, no doubt the commit
tee will recommend that the United
States do the same thing. And no
trust or monopoly will be able to chouse
the people out of the tremendous ad-
vantage which such policy would give
them.
To recapitulate, in brief: Alcohol,
used in every thing but beverages,
should be untaxed:
Because such tax is contrary 10 our
whole theory of taxation.
Because it imposes an unwarrantable
burden on legitimate industries;
Because exemption would immensely
increase both our domestic industries
and our foreign commerce.;
Because it would furnish large and
growing market for agricultural pro-
ducts;
Because it would furnish additional
employment for thousands of men and
women; and
Because it would enable our manu-.
facturers to compete with those of other
countries, both saving our home market
and widening our foreign market; and
that such exemption from taxation il
practicable is shown by the Legislation
in foreign countries.