Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1906-12-09
NATIONAL REYENEE.

AAEnAANhA ANNboNH0AA NAbA0AAAN@AA
on the school situation in San Fran
cisco, one Of the more serious points
touched on in his message has been
lost sight of to a great extent, The
force Of his inheritance tax and in
come tax recommendations has been
discounted. The presidents discussion
of these points was academic to a de-
gree, and yet he said enough to fore
shadow the inevitable reorganization
of the national system of collecting
revenue. The truth is that the funds
in Uncle Sans treasury have been fur
nished and replenished by most UNI
certain means, and only the phenome-
nal growth Of the country and the un-
exampled prosperity of its people have
enabled the government to be assured
of a sufficient revenue to carry on it's
functions.
The principal sources. Of revenue de-
pended upon by the government are an
excise tax and a tariff which in the
main is intended to be prohibitive.
The tariff for revenue only idea was, in
effect, abandoned by the republican
party as a policy more than twenty-five
years ago. The tariff for protection
has produced a large revenue, while
at the same time it has fostered and
built up the American industries until
the manufactures of the United States
now stand in front rank among ma
| tions. The uncertainty of the income
from this source is apparent. 1t natu-
rally follows that as rapidly as the
home demand for an article on which
duty is laid becomes satisfied by
home production the income from the
! importation ceases. This falling off
in revenue is most noticeable during
periods of depression, when consump-
ton is reduced to a minimum, and its
instability as a source of revenue has
caused much anxiety among the states
men who have dealt with this topic.
The argument in favor of a tariff for
revenue gets its support solely from
this condition.
The revenue derived from the excise
tax is more reliable, for the reason that
the articles on which it is laid are
almost wholly a home production and
are very largely consumed at home.
This source of revenue produces about
one-third the annual expenditure of the
government, a little more than 80 per
cent, leaving the balance to be derived
from the various activities of the gov
eminent which produce income. The
removal of the tax from denatureG
alcohol has brought to attention the
fact that in a large measure the benefit
of the law will be denied to the in
tending users of the material for the
purposes to which 1t is adapted. The
internal revenue Office has found 1t
necessary to safeguard the interests of
the government by hedging round
about with rules and regulations the
manufacture and sale of alcohol to
such an extent as will in large meas
ure deprive any but established dis
tilleTs from manufacturing the article,
The process of manufacture is very
simple, as has been amply demon
strated by the "moonshiners," but in
order that the government should be
assured of it's excise tax, the regula-
lions are such that it is not likely
that the manufacture of alcohol for
power or other purposes will soon be
listed as among the farm industries of
the United States. The only remedy for
this condition lies in a readjustment
of the revenue law which will permit
the manufacture of alcohol for domes-
tic consumption in the production of
power, light or heat. This will in
volve, necessarily, a reduction in the
tax now levied on alcohol to a point
b where it will not be profitable to
, ''moonshine" on any but the largest
! scale.
= The suggested inheritance tax has
specifically in view the purpose of pre-
venting vast and dangerous aocumula-
, tions of wealth. 1t cannot be relied
upon as a source of revenue, The in
I come tax, however, is not open to this
e objection. 1t is possible to determine
with exactness the amount of the in
come of each individual, corporation OF
firm subject to the tax and to collec
1t with comparatively small expense
The revenue derived from this source
will be most reliable. The necessit!
OF a continually increasing revenue To-
the government, no matter from wha
!, source it is derived, is apparent. II
= every avenue of governmental activit,
= expenses are daily increasing. This 1
the natural result of the growth of tn
country. AS population increases ant
2 industrial and commercial enterprise
-s are extended the undertaking and re
v sponsibility of the government is en-
q HANGED and additional expense is In
CURED. A few years ago much sur
prise was expressed at a congress
d which appropriated a billion dollar
Is for its biennium. Speaker Reed an
is swered the DIRECTORS by saying: "Thi
D. is a billion-dollar country" Accordin
to the report of Secretary Shaw, th