The times. [volume] (Washington [D.C.]) 1897-1901, 1900-11-17

the Leading hcm-Excises on Fer
changes In Law Recommended.
G. w Wilson. Commissioner of Internal
Revenue. has completed his annual report
for the fiscal year ended June 30. In it
he says:
In the last annual report of the Com
missioner of Internal Revenue it was esti
mated that thu collections from all
sources of internal revenue for the fiscal
year just ended would aggregate s2S5, o0o,-
600. / am gratified to state that the actual
receipts we're s295 S16, 1O757, and that the
estimate was exceeded by $1O.316, 167.57."
The principal source of revenue was the
tax on spirits. which amounted to $780,
S6S.S17.1S. The excuses on fermented
liquors provided s73.550. 35i.49. gain of
1906, 1860 over the previous year. The
taxes on tobacco were S59. 3o5, 0S4.21, which
was an increase of s5,S61. S16.63. Oleomar-
gariue dues amounted to S2,543, IS5.1S.
Other items making mp the total were.
Filled cheese. s17.G64.4S: mixed flour. ST.
1896; special taxes on banks. brokers.
and entertainments. 81 ais, 640.So: legacies.
S2,SS4 i91..5: bank circulation and notes
paid out by banks, s1.460.50; excise tax on
gross receipts, 81 .oTa. i05. "A opium, $l45.25;
playing cards. 1881 ,O10.66: penalties, $685.,
40: collections not otherwise herein
provided for. s2.29l.SO; Schedule a. $685.
i16.0S2.1 IL; Schedule B. Si.54S. 2S3.l9.
Spirits. tobacco beer. oleomargarine. and
legacy taxes each showed gain. There
was n decrease in the amounts of nearly
all the other ard smaller items during
the year
The Commissioner recommends num-
Der OF changes in the internal revenue
| law. He says in part:
I'm order to afford better facilities for
the general distribution of documentary
and proprietary stamps. l. respectfully
| recommend that the law be amended SO
as to allow to purchasers of such stamps
| discount OF not less than 2 per cent
when purchased in quantities CT not less
| than 500 of face value"
| He also recommends that Congress
amend section 20, in the first proviso. by
| adding after the words, that no stamp
| tax shall be imposed upon any uncom-
| pounded medicinal drug or chemical the
words. except such as are sold under a
claim of patent, trade mark, or prcpr e.
torship.' There are found to be upon the
which have been held by the United
States courts entitled to exemption under
the clause exempting incorporated
chemicals which are nevertheless put up
under patent or trade mark, and for
which proprietary rights are claimed.
Some of these articles are imported from
Europe and sold in competition with do
nestle preparations. 1t is believed that
Congress intended to tax all patent, pro-
\
arations alike. and this amendment is
necessary to effect that purpose.
Il recommend that the act of June %,
1893. War Revenue act. be amended in
Schedule by striking out the following
paragraph:
Certificates of any description requir-
ed by law not otherwise specified in this
act. 10 cents
This clause of the law has given. per-
haps, more trouble In its administrats Hon
| than any other. The greater part of GER
tificates required by law are necessarily
! issued by Federal. State. or municipal Of
fcers. This Office has ruled that where
such certificates were issued in the ex-
ercise of functions strictly belonging to
the State in its ordinary governmental or
| taxing capacity they were exempt from
tax under section II of the act: but if
1 such certificates were issued at the re-
quest of private persons. solely for private
use a stamp should be affixed. and that
| such stamp should be furnished by the
person applying for the certificate. In a
number of States. however. the officers
have maintained that all certificates is
sued by them were exempt because re-
quired by State law, and have declined to
afiix stamps thereto. To avoid conflict of
| this kind il would be expedent to repeal
! the above clause"
! The Commissioner also advises that
| Congress amend the third paragraph of
| Schedule A. relative to bank checks, by
| adding after the words order for the
| payment of any sum of money the words
''or receipt given for withdrawing depos-
| its from banks other than savings banks. :"
| He says: Receipts not requiring a
stamp under the law ii was found impos-
sible to rule that when a deposition went
to a bank personally and withdrew his
deposit, or a portion thereof. by tender
| ing receipt for the same. said receipt
was not any more taxable than any other
| receipt, and, therefore. this office was
| obliged to permit the exemption from tax
alton of a receipt used in this way. The
| use OF receipts in lieu of bank checks in
| this manner is constantly increasing. as
evidenced to this office in many ways.
THE check stamp tax is probably the
| largest single item OF revenue derived
| from the documentary stamp taxation.
and the use of receipts in lieu of checks
is perhaps responsible for some of the de-
crease in revenue from this source. As
a knowledge of the fact that receipts can
be used in this way has permeated the
community, many persons now 20 to the
banks and withdraw money on their indi-
vidual receipt who would formerly have
drawn a check for the amount. OF course
this is an evasion of the tax, but to 'evade
the tax in Law ii manner cannot he pre-
vented. The Law should be amended SO
that all persons Withdrawing deposits
from commercial banks shall be subject
to the same taxation.
Mr. Wilson shows that the cost of COL
lecting the internal revenue taxes was 81.
653, 6S774. or LIS per cent of the receipts.
He estimates the cost Of collection for the
coming year at si926,340. He asks for
S266.340 as salaries for POI persons in the
Internal Revenue Office in the coming
year He recommends graded salaries for
collectors of internal revenue, based on
their probable collections. with an increase
of 1-2 per cent on collections for amounts
in excess of the estimated collections. The
pay scale suggested by Mr.. Wilson would
give salaries of s. 0G0 to collectors taking
l., Taee chan Oll annually and S0 on I'm