The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-01-31
Chairman Payne, Of the Ways and
Means Committee, Instructed to
Prepare n Repeal Bill.
SURPLUS ABOUT $1oO,ooo,ooo
WHILE THE CASH BALANCE OF THE
TREASURY Is sIs4.OOO,OOO.
MIR. Payne's Statement of the Proposed
Measure-The Taxes That VIII
BE Repealed.

WASHINGTON. Jan. 3O.-The ways and
means committee by unanimous vote, TO-
day instructed Chairman Payne 10 pre-
pare a bill repeating all the war revenue
taxes except the tax on mixed -four. The
action taken was in the form Of reso-
luton TO the effect that the bin should
provide for the repeal OF the remaining
war taxes. to take effect on July l, l9O2,
except that the repeal OF the duty on tea
should go into effect Jan. 1. 1893
The only division in the committee was
on amendments proposed by Democratic
members Representative Richardson. of
Tennessee, proposed an amendment 10 put
trust-made articles on the free list. This
was defeated by party vote, as was the
amendment Of Representative Robertson,
of Louisiana, to continue the tax on
bucket shops" Representative Newlands.
of Nevada offered two amendments. one
excepting from the repeal the tax on pc
troleum and sugar refneries. and another
imposing a tax Of one-tenth of 1 per cent.
on the gross receipts of any Industrial
corporation having receipts OF $l,OooooO an
nualIy. Both amendments we're defeated
by party votes.
Chairman Payne made the following
statement on the proposed repeal: The
treasury now has available cash balance
OF something over $l74.0O0O00. 1t is not
likely that this will be increased material
" during the present fiscal year. the
treasury is buying bonds at a rate that
will use up the surplus to accumulate be-
tween this and the end Of the fiscal year,
June 30. next. The secretary of the treas
ury's report estimated a surplus for this
year OF Sl00,0O0.O00. and subsequent results
seem TO confirm this estimate The COM
mittee therefore thought II was entirely
safe TO repeal the remainder of the war
revenue taxes, amounting 10 S6oVo0,OJJ, ana
the tax on tea OF 100000 in the aggre-
gate S77.OOOOOO. at this time This will still
leave surplus estimated upon this year
receipts and expenses OF S22,00,O0 or SZ5,-
100000 for the year, while we will start upon
the next fiscal year with SlHVOO.eOO avail
able cash I'm the treasury. The committee
deems il wise to have the repeal OF the
tax on tea take effect on the first
of January next in order TO enable those,
especially retailers and small dealers who
have small stocks of the duty paid goods
on hand. to dispose OF them before the
repeal takes effect. We can provide re-
bate on the tobacco tax and guard against
any fraud upon the revenue for the rea-
son that the internal revenue department
has this trade under close surveillance and
can and viii take in account OF the stock
in the dealers hands on the first day OF
July next But this will be impossible as
10 teas, which come IN as customs duties
and of which the government has no ac-
count save as they are imported in large
quantities by the importers. Continuing this
tea tax 10 the first OF January will give
US six months revenue in the next fiscal
year upon tea and Will make the ultimate
reduction for the next year considerably
less than $75.0o0,OO0 The bill will be present
ed TO the House as soon as il can be pre-
pared.
The repeal. as stated I'm the bill. will af-
feet the remaining special taxes imposed
by the war. namely:
on bankers. brokers, grain dealers pawn
brokers. custom house brokers' theaters.
museums, circuses. etc; billiard rooms and
bowling alleys. playing cards. dealers In
and manufacturers OF tobacco.
The reduction on fermented liquor VIII
amount 10 90 cents per barrel: that on to-
bacco ard SNUFF will be cents. bringing
the rate back 10 cents per pound as be-
fore the war The rate on cigars and cigar
rettes was changed last year but the fur
ther change now made viii bring the rates
back 10 those existing prior 60 the war.
The repeal Under Schedule a OF the law
Will include the tax on bonds, dcbenturcs,
etc: certificates Of stock. sales. or agree
meuts stock transactions. inland and for
eign bills Of exchange bills OF lading, in
Identifying bonds. certificates of profit.
brokers' contracts, custom house entries.
warehouse entries, steamboat passage
tickets.
The repeal under Schedule 3 will include
the tax Of ! cent per pint bottle on vine
and 2 cents on bottles over "A pint. The
LEGACY tax also comes OF. other reIuc-
tions include the excise taxes on persons
and firms engaged I'm refining petroleum
and sugar. special tax OF banks and bank
ers, stamp tax on parlor and sleeping ca
berths. etc
is 10 cents per pound and this viii be re-
pealed.