The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1915-04-12
New Sources of Taxation.

There is no question but that the greatest cause
of disappointment TO the present administration
las been the failure of the Underwood tariff law
TO produce as much revenue expected. We
have discussed this matter on previous occasions
and we shall do so again in future. But at present
we allude to it merely to call attention to the fact,
however the fact may be explained. that in the
last year there has been great falling off in the
custom receipts of the country, which has, Of
course, meant a great lesscnng of the govern
Imcnts revenue There is little doubt that the
tariff might be increased in several directions with
great gain to the financial condition of the Treas
ury; and bold to believe that the
Democratic leaders themselves will propose at the
next session Of Congress to amend the Underwood
tariff law in several particulars in the direction of
higher rates. We have spoken several times of
the folly that was committed in lowering the sugar
duties. These duties could be raised again to the
level occupied before the Underwood cut went into
effect without harm to anybody and with great
benefit to the government and the sugar producing
and sugar selling interests of the country.
Be this as it may, it is worth while pointing out
at the moment that in all probability it will be a
very considerable time before the tariff will pro-
vide source OF revenue to the Treasury great
that which it provided in years gone by. 1t
is said, and We think truthfully that the war in
has assisted to a very material degree in decreas
ing custom receipts; but if the to end
tomorrow these imports would probably not in
crease very much for long period. The factories
in Eastern and Northern France, the great manu-
featuring districts of the country, half de-
StrOycd. 1t is possible that factories in England
and Germany will be manned by an insufficient
supply of labor for years after peace has been
declared. In other words the productiveness OF
chief competitors, who manufacture goods,
will suffer severe interference for indefinite
length OF time in the future.
Also the revenue from the income tax has been
deficient for various reasons chief among these
being the fact that the tax is mighty unpopular.
Those who levied 1t were afraid to make the tax
too inclusive to place its rate at high
figure. This difficulty will be all the greater il
any attempt is made make the TAX Weld a larger
sum. Corporation and stamp taxes have all been
pushed pretty far. One very striking development
in recent social life has been the growth OF
the prohibition movement all over the world. For
various causes. not all OF which directly con-
nectcd with the war, the sale OF strong alcoholic
liquors has either been prohibited checked by
legal means in many European countries. Here
the prohibition movement has originated from
economic sources; and the revenue OF the gov
eminent from taxes on the manufacture and sale
OF liquors is likely to be less hereafter. despite
the natural increase in the population OF tho coun-
try.
VIC think it is fairly plain that Congress will
be forced sooner or later not only to make gen
eral increase in tariff rates. but levy taxes par
tcuiarly upon the importation, manufacture and
consumption OF articles in very common use, such
as tea and coffee. A tax to he really productive
must he levied upon things that widely con-