The Washington herald., 1909-02-03

/ Face 10 face with a treasury dehcit now
sggregating S7s.O00.000 and that threatens
TO run to approximately s1So. 600, by the
end Of the current fiscal year, the Com
mittee on Ways and Means. now engaged
in the task of framing a tariff revision
bin. contemplates reporting a measure
that viii likewise revise the internal
revenue taxation laws
/ IN this connection il was learned yes
terday that the committee seriously. con-
sidered proposing an increase IN the in
teTnal revenue tax on beer. a commodity
that now yields, at 81 a barrel. approx
mately S55.cOo, ,00o.OoG The brewers have
already interpOsed strenuous objection.
They insist that II more revenue must be
raised it should not be through the
medium OF higher tax on beer.
There Is good reason 20 believe that the
committee viii report in favor Of re-
enaCting some OF the provisions OF the
1 Spanish war revenue act.
Suggests Stamp Tax
Among the suggestions made In this
connection is that a stamp tax should
be imposed on commercial paper. and on
proprietary medicines.
As TO the latter articles the committee
has been advised to tx rates Of internal
revenus taxation based on the alcoholic
content.
Such action would in the first instance
create a good deal OF excitement, but IL
taken. the committee believes. would be
productive of a considerable revenue Just
how much further the committee has gone
/ in the direction Of scrutinizing articles
OF domestic production that might be
made TO yield revenue. is not known. as
committee members have practically
taken an oath not TO reveal any OF the
conclusions or disclose any part OF the
proceedings relative 70 the revenue bill
under consideration
But beer, commercial paper. and pro
prietary medicines are among the articles
that may be taxed through the internal
revenue that are subjects OF serious con-
sideration BY the House Committee
1 Il Is understood the committeeman, are
/ agreed. after careful deliberatiOn. that the
customs revenues. added 10 those from
internal revenue taxation. are no longer
adequate for the needs OF the govern
ment For this reason Congress will be
advised 70 pass q Law that win enlarge
receipts from internal taxation
Three-Cent Coffee Tax,
While a final decision as to the proposed
customs tax on coffee has not been re-
duced. the. committee wiz undoubtedly
recommend a customs duty OF cents a
pound on that commodity.
Such a rate. II Is estimated, would bring
into the Treasury an additional g, ,OOO. 900
a year. Then there Is tea, which has
not been taxed al the customs houses Of
the United States for many years. In
the final analysis, the committee may find
It necessary 10 impose a duty on tea,
which would add still more 10 the reve-
nues OF the government
Among the most earnest advocates Of a
tax on coffee are the brewers. They
claim that the present rate OF &
a barrel Is high enough Coffee. they as
sert should assume It's part OF the bur
den.
While members OK the committes do not
say so. it is known that in many in
stances the tariff is 10 be revised down
ward. and such a revision. according 10
estimates that have been made, viii result
in numerous instances in increased rev
enues
IN other words. the committee does not
expect 70 prepare bin that VIII enlarge
the national income solely by Increasing
customs rates. Careful computations made
in giving cases show that reduced duties
viii result in increased impOrtations. and,
consequently, in increased customs re-
ceipts
The committee is making satisfactory
progress with the tariff bin. Il viii be
ready for presentation to Congress by
March 10 the date which II is believed
President Taft viii name in his proclama-
ton conferring ths lawmakers in special
session