The Richmond Virginian. (Richmond, Va.) 1910-1920, 1913-12-30
PROHIBITION AND TAXATION.

hibition territory. and there has not been al
/ instance of increase taxation In any dry" com
munity far as we have been able TO ascer
/ tain.
/ Year by year the prohibition territory has
has lost in revenue from the liquor traffic, but
the State has not found it necessary to increase
its tax rate with every addition to the ranks
Of dry cities and counties
Tbrec-tourths Of Virginia has gone dry without
cry for a twenty-five per cent increase in the
tax rate, and yet at the prospect of the other
onefourth going dry the wet" senators who
wish to vote for the enabling act without ensur-
ing its passage suddenly find that ten cents must
he added 10 the forty cents on the hundred al
ready levied
Not only is It true that three-fourths vir-
Finia became saloonless without the accompany
ing necessity of increases In local or State taxes,
but the whole Of North Carolina became PROFIT
bition territory, and after four years there has
not been found any necessity for an increase in
the tax rate. In fact. although the rate has re-
NAMED tho same the revenue from taxation has
increased. The revenue from the saloon was
lost to the State. but the total revenue increased
nevertheless
There IS no mystery about it, Prohibition
destroys nothing The saloon goes. but the CAPT
tai still exists, in another form. The money in.
vested in saloons is invested in something
else, and It taxes are paid The rate
Is not as high, but here is q difference
The capital employed in saloons produces
nothing The capital employed In other
enterprises produces other productive enter
prises The money spent with the saloons is
still spent but 1t Is spent for other things and
things which add to rather than detraet from the
prosperity of the individual More money is
deposited In banks and taxed. That money is
used by productive enterprises. and the enter
prise at.A ia eseAsfet4- sHe-tase a-----
The average annual increase In bank deposits
I'm North Carolina for the seven years preceding
the passage Of the Statewide prohibition meas
ure was 81, 929S25 The average annual increase
in North Carolina after the passage of the pro
hihition act was $11 047 O3l The total increase
in deposits for the last seven years of local
option but little more than half the total
!
prohibition.
North Carolina did not have to depend upon
the saloon for revenue. though Of course, the cry
was made when the question of prohibition was
being agitated. Tax receipts for the last six
years under local option were about $4,000 900
or course the howl went up that to make North
Carolina dry would be TO decrease that revenue
done to supply the deficiency. Taxes would have
to be raised. and the individual would suffer be
cause of the elimination of the saloon
prohibtory law was enacted The tax rate
not increased. According 10 the prediction
Of the saloonists there should have been a re
stead Of a little less than two and half mil
lion annually, the income was more than three
million per year for the next four years.
Here are some interesting figures
Tax receipts for last six years under
local option ACKNOWLEDGEMENTS. SId.9So,S3d
Average annual tax receipts last six
years under local option, ......... $780, orc
Tax receipts for first four years under
Statewide prohibition ........... $i2,4less4
Average annual tax receipts first four
years under Statewide prohibition. 3,104,24f
Virginia has a surplus in the treasury equal
to the annual revenue from liquor. As prop
erty valuation has increased in the past 1t ir
fair 10 assume that it will increase In the future
The income during the last two years was
greater than the expenditure From these facts
we can safely assume that If expenditures are
increased only to the amount OF the surplus We
will have another surplus two years hence be-
cause of the increased valuation of property.
Al the end OF that two years. L the enabins
act passes. would face the loss of the liquor
revenue. but again would have In prospect an
increase In the value of property. and greater
increase than before. because OF the elimination
Of the saloon This prospective surplus, though
small and this prospective increase in the valua
/ tion of property, though small, would provide
revenue equal to that lost by the abolition OF the
saloon. II did 1t in North Carolina and more
Can our wet" senators tell us why 1t should
not do 1t here IN Virginia?
why are there twice as many widows at
wldowers in the United statcs?--New York
Times
VIZ In