The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1909-02-18
TARIFF MENACES
THE REVENUE OF
YOUR UNCLE SAM
Reduction in Schedules Means
Loss of Income, Which Is
Now Much Smaller than the
Expenditure.
CONGRESS HAS GREAT
PROBLEM TO CONSIDER
To Solve the important Ques-
ton the Greatest Financial
Wisdom Will Be Very Es-
SentiaI.
BY Sheldon S. Cline.

BY Sheldon S. Cline.
| Washington, Feb 1S.-A prominent
republican member Of the house ways
and means committee in discussing the
difficulties of tariff revision said:
THE country demands and expects a
lower level of tariff charges. Lower
schedules means less revenues, and al
its outgo. At the present rate the
treasury deficit will soon reach the
menacing point. How are we going to
lower import charges and still get the
money into the treasury
| Never Such Problem.
The republican majority in congress,
no majority in congress, in fact was
ever confronted with a problem that
called for the exercise of greater fin
ancial wisdom. Is it any wonder there
| is divided counsel with doubt and I'M
as to when tariff legislation may be
| achieved or what form it will take in
the achievement? The problem, indeed
| is three cornered one. There must
be lowering of the schedules as will
| satisfy the country without destroying
| thise interest to which tariff protection
| is essential, sufficient revenue must be
| provided for the purposes OF govern
| ment, and the republican party main
| tanned in power. No one can blame
the republican majority in congress
| il the last named corner is given chief
| consideration. Were the job being
done by the democratic party the same
| consideration would hold.
Much Disagreement.
While at present republican consid-
Grafton of the tariff is chiefly marked
by disagreement, there is one point
| on which most republican legislators
are agreed Revenue will have to be
raised by forms of taxation which
| have not in the past been part of re-
publican policy. Suggestions along this
| line have been numerous. There are
any number OF plans which have
strong advocates, but none of them is
free from objection.
There are some Influential republic
can members of the ways and means
committee who favor the imposition of
what have come to be termed break
fast table taxes Chief among the
items on this list are a proposed tax
of thee cents a pound on coffee, which
it is estimated would produce an an
nual income of about $27, 900 900, and a
tax of ten cents pound on tea, fig
| ured to put S1O.OOO,OOO year into the
treasury Coupled with these beverages
taxes it is proposed to increase the in
| ternal revenue tax on beer from 81 to
81 barrel, producing about 10000
coo year additional revenue. The
three items would bring about $97 ,OOO,-
abling those responsible for the ma
tons finances to view with consider
able more equanimity prospective cuts
| in income from other sources.
Would Be Unpopular.
These three items of proposed tax
atom however, are open to the most
serious OF political objections. They
would be highly unpopular with the
people. While the element of popula-
tion which would object to the increas-
ed tax on beer is large. it might safe
ly be undertaken. But the proposed
| tax on tea and coffee would touch ev-
| cry mans pocket, and as the result
would be an immediate increase in the
selling price Of those commodities ev-
cry man would know at once that he
was touched. According to the argu-
ment of those opposed to these particu-
| lar taxes congress has received from
tariff with a view to decreasing cost
of living. To increase taxes on one
article merely that they may be low
cred on another, it is argued, would
| be simply to take money from one
| consumers pockets to put it into an
other pocket, and the consumer would
| find in the end that he had no more
, money than before.
But. in some way or another. that
treasury deficit must be wiped out.
| Work Of Minority.
| The democratic minority in congress
| is at work on program for meeting
the treasury deficit which they feel
| sure will at least produce some mighty
| valuable political capital. They are 60
ing to propose such reductions in the
schedules as will lower the cost of ev-
| Ga uoS NoAhAioaitiCS. dlIu ludL tuc iOSS
| of revenue shall be made up through
| an income and inheritance tax.
| If the democrats accomplish nothing
more with this program. they will at
least cause the republican majority
| lot of embarrassment. The idea IS
bound TO appeal to the popular mind,
| for it is an undisputed and indisputa-
| bic fact that in federal as we'll as state
taxation the well to do do not bear
/ their just share of the burden. A flat
tax on coffee and tea. being the same
on the cheaper as on the higher grades
would touch every man alike. while
| only few men who labor with their
hands would be affected either by an
income tax or an Inheritance tax.
income Tax Law.
Those who advocate an income tax
| believe law can be drafted which
would stand the supreme court test