The L'Anse sentinel. (L'Anse, L.S., Mich.) 18??-current, 1902-02-01
AS TO REDUCTION OF TAXES.
How TO Take Down the Treasury
Surplus with Best AdvantaSs
20 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 q
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 1903.
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, 100000 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 natural one. The
activity Of trade and the general high
level of the country's prosperity, cou-
pied with reduction in expenditures,
have made the surplus for the cur
rent year more than IL was In the
preceding ~ 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 30
next, a little over five months hence,
will be about $100.Oo0,0OO, says the
st. Louis Globe-Democrat.
How can this surplus be reduced
most advantageously for the coun-
try? Representative Boutell, Of I'LL
nois, in an article in Leshe's Week
ly proposes that the whole of the
remaining war taxes be abolishfd.N
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 rs to how much
of surplus would be left il 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 ap-
proach to accuracy. 1t is well to
bear in mind that, though Secretary
Gage estimated the surplus at $780,
900 900 for the fiscal year ending with
June. 1902, he figured that the sur
plus for the year ending with June,
1903, would be only $23,000,000. The
basis in each case is the existing tax
laws, coupled, in the second case,
with the estimates for appropria-
tions which have already been sub
mitted. While there is q chance that
this $23,00O,000 guess may be wide OF
the mark, yet the fact that the mar
gin for next year will be much small
err than is that for the year which
will end few months hence ought
to be taken into the account.
Unquestionably some of the war
taxes can safely be removed altogeth-
err or reduced. Whether all of them
can be cut off without danger is mat
ter which calls for careful elaboration
by congress. The estimates of ex-
penditures which the secretary Of the
treasury had before him when he made
his forecast of a 1923 1000. 900 surplus for
the fiscal year ending on June 30, 1908,
showed a much larger outlay than will
be made in the year which closes few
months since. This of course, is q
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-
ma ting 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.
It is well for the republican party to
be on the safe side on this big question.
A deficit, If we should have it, wouli be
an awkward thing for the republicans