Watertown republican. [volume] (Watertown, Wis.) 1860-1906, 1902-02-01
QUESTION OF TAX REDUCTION.
How to Take Down the Treasury
Surplus with Best Advantage
to the People.


The subject of special interest to
the ways and means committee at
this moment is: How shall we deal
with the treasury surplus? 1t is
question, too, in which the people
of the whole country have pro-
found concern. May republicans pro-
pose the abolition of the whole OF
the remaining war taxes of 1898.
Part Of these were removed by the
recent congress, most of the changes
to take effect at the beginning OF
July last. 1t was supposed at that
time that this cut would abolish the
surplus. The estimate was that $4O,-
100000 or $45,O0O,000 of revenue would
be eliminated, and that the treasury
accumulations of the year beginning
with last July would be comparative
ly small. This was an error of Judg-
ment, but it was a natural one. The
activity of trade and the general high
level of the country's prosperity, cou-
pied with a reduction in expenditures,
have made the surplus for the cur
rent year more than it was in the
preceding II months. Secretary
Cages estimate is that, on the basis
of existing laws, the excess of re-
receipts over ordinary expenditures
in the year which ends on June 80
next, a little over five months hence,
will be about $100,000,000, says the
ST. Louis GlobeDemocrat.
How oop tbic cI1rnl11c he reduced
most advantageously for the coun--
try? Representative Boutell, of lii
nois, in an article III Leslie's Week
ly, proposes that the whole of the
remaining war taxes be abolished.
| Representative Bartholdt has bill
| before congress which provides for
! the removal of all these taxes. 1t IS
! meeting with strong support from
republicans, and it is likely to meet
the favor of many democrats. There
is some uncertainty as to how much
of surplus would be left if all these
taxes were given up. Forecasts on
this line are apt to be worth little.
There are factors affecting govern
mental income which cannot be meas
ured beforehand with any close APP
proach to accuracy. 1t is well to
bear in mind that, though Secretary
Gage estimated the surplus at $780,
! 100000 for the fiscal year ending with
June, 1902, he figured that the sur
plus for the year ending with June,
| 1908, would be only $23,000,Co0. The
| basis in each case is the existing tax
laws, coupled, in the second case,
with the estimates for appropria-
tons which have already been sub
mitted. While there is chance that
this 1923 100000 guess may be wide of
the mark, yet the fact that the mar
gin for next year will be much small
er than is that for the year which
will end a few months hence ought
to be taken into the account.
Unquestionably some of the war
taxes can safely be removed altogeth-
er or reduced. Whether all of them
can be cut off without danger is mat
ter which calls for careful deliberation
by congress. The estimates of eX-
penditures which the secretary of the
| treasury had before him when he made
his forecast of a 1923 ,000,0 900 surplus for
the fiscal year ending on June 80, 1908,
showed a much larger outlay than will
be made in the year which closes few
months since. This, of course, is
safe precaution, for the isthmian ca
nal and the Pacific cable, both of which
will probably be authorized at the
present session of congress, will be
among the things which Will increase
the governments monetary demands.
Just how much the annual outlay will
| be increased by these great works of
national utility is uncertain, but these
and other great enterprises have to
| be taken into consideration in esti-
mating the excess of governmental re-
ceipts over expenditures. The ques-
| ton of how much taxation can be abol-
| ished is one which demands careful
study in the light of all the conditions,
present and prospective. AS the pres
ent Gen. Grant once remarked, a sur
plus is easier to manage than deficit.
1t is well for the republican party to
be on the safe side on this big question.
A deficit, if we should have it, would be
an awkward thing for the republicans
to explain in the canvass of 1904.