The Manitowoc pilot. [volume] (Manitowoc, Wis.) 1859-1932, 1913-10-30
EDUCATIONAL.
(BY C. w. MEIsNEsT.)

| INTERNAL REVENUE:-The follow
ing was prepared by Chas. Elmer, a
former teacher, and now connected with
the Internal Revenue department.
This will be good lesson in civcs
The Internal Revenue Depart
ment is really part of the Executive
Department. The first power of Con-
gress says that, Congress shall have
the power to lay and collect taxes, du-
ties and imposts etc. 1t is the duty of
the Internal Revenue and Custom
House Department to collect this rev.
enue. Custom House collects the dut-
les on imports to the United States
while the Internal Revenue Depart
ment collects the Internal Revenue.
What is Internal Revenuey 1t is tax
imposed on such commodities as beer,
spirits (whiskey) cigars, tobacco, snuff
playing cards, colored oleo, adulterated
butter and mixed -four and special tax
imposed on dealers who deal in these
commodities. In other words the diff
ferent licenses, retail liquor, Wholesale
liquor, malt and oemargarne dealers
must pay is one of the sources of Inter-
nal Revenue. That this revenue plays
no small part is shuwn by example Of
one daily collection of one Revenue
District, the First District of Wiscon-
sin, whose headquarters is at Milwau
kee, when over 29l, 900 dollars was col
lected on June Both, 1913. The Uuted
States is divided up into about sixty
four Revenue Districts, their being Two
districts in Wisconsin. The collecting
center of the Second District is Madi-
son. Over eight million dollars have
been collected by Henry Fink, Collec-
tor of Revenue of the First Wstcict Of
Wisconsin for the fiscal year ending
June Both, 1913. The largest revenue
is derived from the sale of beer and
spirits stamps. Over 3,900,0 barrels
of beer were manufactured IN Milwau-
kee alone for the past year. About
eighty five different denominations of
stamps OF value'are sold to the tax-pay-
ers. The stamp tax on beer is one dol
lar barrel; spirits one dollar ten cents
on a wine gallon OF one hundred per
cent proof; cigars, three dollars thou
sand; tobacco, SC pound; colored OLE
margarine ten cents pound, uncolored
one half cent pound.
The total aggregate collections from
all sources Of Internal Revenue for the
fiscal year ending June 30th, 1913 is
over $344, ,000,000
| The tax on the incomes OF corpora
tions amounted to about $35, 600, 600.
Enforcing the different regulations Of
this department also plays no small
part. Probably ninety per cent Of the
violations OF the Revenue Regulations
is due to the ignorance Of the law and
not through malicious intent to defraud
the Government Of its taxes. The
Government jealousy watches its inter-
ests and by checking up the various re-
ports which must be filed, all discrep-
ancies are noted SO that there is no OPP
portunity to defraud the government of
its taxes. The cost of collecting the
internal revenue for the fiscal year was
approximately 1882 per 1000 dollars
There Is probably no other bureau that
collects it's taxes at SO low rate.
The work of the Custom House de-
partment is to collect the duties on i'm
ports. Germany leads the list in direct
imports at Milwaukee. England is a
close second. The imports mainly con-
sist of hops, tobacco, metals and manu-
factures, wood lumber, china and earth
enware, fish, fibers, leather and manu-
factures, paper and manufactures, dry
goods, cotton, linen and silk. To pro-
tect their interests. or in other words
to prevent smuggling, the Revenue
Cutter, "Tuscurora' plies the Great
Lakes.
Recently Congress passed the Under
wood Tariff Bill, reducing the tariff.
One OF the provisions OF the Tariff Bill
is the National Income Tax. A tax is
TO be levied upon all individuals whose
incomes are over three thousand dol
lars. With additional help the Inter-
nal Revenue Bureau is to collect this
tax. The income derived from this
source, which is estimated at about 80
million dollars for the first year Is
thought to make up the deficit as re-
suit of the reduction Of the tariff 1t is
to be deplored that the appointment OF
the additional force to administer and
collect income taxes is made under the
"Spois System" This form of tax
strikes more particularly tax paying
citizens than do the indirect taxes col
lected through the Custom duties
| m ctllili liInc nlCE