New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-08-03
INTERVAL RErENUE T1KEs.

For three years past the federal government
has been clipping its internal revenue taxes
First by the law of March 9 1901, it sacri-
feed about half the emergency imposts levied
in June, 1888, TO help pay the expenses of the
Spanish war. Then. year later-fnding such
a halfway pruning impOtent 10 check the use
less accumulation of excess revenue in the
Treasury Vaults-it tried a more heroic piece of
surgery and repealed the mutilated emergency
tax law outright. The first act cut the national
income about S40.000.O00. The second was in
tended TO slice off about $4,000 600 additional
And with this looping away Of nearly 100000
600 it was thought that internal revenue collec-
tons could be held hereafter within their for
mer ante-bellum scope
The report which the Commissioner of Inter
nal Revenue has Just issued covers the first
full year of the return to taxation on the old
1897'9S basis. II shows a curious mixture of
results. On the one hand. it is apparent that
the tax reduction act of 1902. unlike that of
1901, did actually realize one of the expecta-
tfons Of its trainers. 1t was intended TO remit
about S45yO00,O00 in taxes. 1t actually RENTED
S4Bl2I60I For the years internal revenue re-
ceipts were less by that sum than those for the
year ending June 80, 1902. 1t did actually check
collections. And had the receipts from customs
not far outrun all calculations the Treasury
books might not, perhaps. have shown on July
/ last another uncomfortably swollen surplus
Yet, beyond helping to offset this uncounted
Oh squirt in customs dues the law of 1902 seems
10 have accomplished next to nothing 1t
failed 10 take into account that vast expansion
OF which the revenue producing POWER is capable
in a country growing-as the United States is
ar this moment groWing-in wealth in popula
lion in resources. in ability to produce and in
ability 10 consume Neclecting 10 note the dif-
ference between Ike commercial and industrial
conditions Of to-day and those of a decade ago.
The second repeater plainly undermeasured the
prOductYeDess Of the Old internal revenue taxes
II has not therefore. turned the tide of over
abundance setting 50 strongly toward the Treas
airy. Nor has II furnished anything like work
able solution Of the problem with which the
Treasury has long been wrestling-the problem
Of adjusting with some security and accuracy
lis prospective annual outlay and its prospec-
tive annual receipts.
Though for this year direct Joss Of S41.127.-
Coz in internal revenue collections is reported.
as compared with last year find in
Commissioner YcrkeS's report abundant evi-
dence of a steady growth in the governments
income from internal taxes. Thus. in 1897
the year before the added war taxes were i'm
posed-the imposts collected on spirits amounted
10 S92, 54G,999. In the wear ended june 80, 1903,
with the same rates enforced. the collections
were S131. 953.473. Cn tobacco the total raised
in Isg7-'9S was 36230J22 For 1920 il was
S43.J1 SO IN other words the natural growth
of the country is shown in n vastly Increased
consumption Of these dufiable articles and this
consumption, acceleratIng each year win keep