The times. [volume] (Washington [D.C.]) 1897-1901, 1900-12-14
DISCUSSING THE WAR TAX
Consideration of the Revenue Bill
Resumed in the House.
BnrthoIdt and EOu-
tell of Illinois Urge Further Re-
lief fer Brewers Than Is Provided
In the Pending Measure "A Vote
May be Reached at TOIay's Session

Consideration of the War Revenue Re-
duction bill was resumed by the House of
Representatives in Committee Of the
Whole yesterday. Messrs Mcclellan
Grosven0r, Newlands. Underwood. Levy
! Boutell OF Illinois, and Bartholdt spoke
on the bill. and Mr. Hill of Connecticut
made speech favoring legislation to still
further strengthen the gold standard law.
1t is the expectation of the Republican
managers that the bill will be passed at
| today's session.
| Mr.. Grosvenor who held the floor at the
time of adjournment Tuesday, yielded to
Mr.. Mcclellan.
AS member of the Committee on Ways
and Means, and head of the minority OF
the Subcommittee on internal revenue of
that committee, he said he regretted
that the majority had not taken advan-
tage of the present opportunity to reform
the whole scheme of internal taxation:
| that he thought that there was a general
| agreement among gentlemen of all parties
f. that internal taxation should be ievied Tor
| revenue purposes only. This bill. he said
| 40 hSSesSsiiiiy patCH WOTk, as All Internal
| revenue bills must be until the whole in
ternal revenue system is recast. The
present internal revenue system is really
the outgrowth of the civil war. He pro-
ceeded to show how in his opinion the
trainers of the original law had believed
in the equal diffusion and proportional
theories of taxation. but that both of
these theories had been discarded, and
that modern economists and financiers
VI tod ;v,1 1nI;
ability or faculty and in progressive taxa
tion.
Mr.. Mcclellan then gave the history of
modern tax reform in Great Britain,
Prussia, Holland, and New Zealand, and
showed how. in these four widely sepa-
rated countries the same problem vas
solved in substantially the same way.
From this he inferred that in SO far as
possible the solution must be applies BILE
to existing conditions in the United
States. He then discussed successfully
existing forms of internal taxation, hav-
ing first explained that to make the mat
ter Ineligible he had been obliged t. en-
tirely recast the schedules and rearrange
their various items. Under his classifi "a
tion the internal revenues are derived
from six sources. namely. distilled spiiits.
iermented liquors, tobacco. including
cigars and cigarettes: stamp duties, in
lesacies. MIR. Mcclellan took up en- |
schedule at great length. showing the his |
tory of each tax, the various rates i'm |
posed. tne total revenue and conSump ion, |
as well as the per capita revenue and con-
sumption under each rate. his object be- |
ing to fix as nearly as possible the maxi |
mum revenue raising point in the tax rate |
on each of the articles discussed. He |
claimed that the rate on distilled spirits |
" c fn ph hny ON fnrr tod
what above. and on tobacco and cigars
somewhat below the maximum revenue
raising point.
Scientific Scheme of Taxation.
Mr.. Mcclellan then argued in favor Of
balanced budget He said there was no
necessity for a surplus: that with scicn-
tific system of taxation the rates could
be either lowered or raised to very nearly
meet the appropriations. He said that a
correct scheme CT taxation would include |
progressive legacy tax and progress
sive excise tax upon certain occupations,
and an indirect tax on distilled spirits.
beer, and tobacco a. rate somewhat be-
low the maximum revenue raising point
With such a scheme il would be possible
by slight increase or decrease of the
rate of one or more of these taxes to
greatly increase or decrease the reve-
nues. and that for emergency purposes
Congress could always fall back upon The
stamp duties.
In conclusion Mr. Mcclellan said: Eco
nomic conditions change as methods of
production and distribution become more
perfect and as civilization becomes more
complex systems of taxation originally
just may in time work injustice; theories
once applicable to past conditions may be- |
come obsolete. ,
Economic progress never halts, but |
surely and steadily advances in no country ,
more certainly than in the United States |
The present internal revenue system, en-
acted as a war measure for 30000,00O peo- ,
pie. borne by them with patriotic patience .
during four years of hostilities and with |
increasing protest during thirty-five years
Of almost constant peace. has proved but !
i'll adapted as permanent system for a | !
nation of 100000. Ours is the greatest
nation or earth, as well as the most |
and the most powerful. In intel
lectual and in material development we
have led the world Yet in dealing with
the problem of taxation upon which so
much of the happiness and prosperity of ,
our country depends. We have fallen far | ,
short of the requirements O. present con
iitions. As representatives of the people Ii |
Is our duty, regardless of faction or of !:
party, to readjust taxation to the peoples ]
needs"
Mr.. GrOsvcnOr's Argument.
Mr.. Grosvenor, a member of the Com =
mittee on Ways and Means. followed. in :
support of the bill reported by his COM .
nittee In the language of distinguished
statesman, whose name he said he would
lot give, for in bis opinion the statement
without the name would have more in
luence with the Democrats. unnecessary
axation is unjust taxation" His speech
vas devoted to showing that the action of
he committee in framing the bill had been
lf sed On that principle.
In the course of his remarks. Mr. Gros-