The Tacoma times. [volume] (Tacoma, Wash.) 1903-1949, 1915-04-20

WASHINGTON, y o., April II.
With Is states which are either
under complete prohibition, or in
which the prohibitory laws al
ready adopted will go into effect
In 1916
With more than one-fourth of
the total population of the United
States living under prohibition,
and with prohibition sentiment
apparently making continuous in
roads on wet" territory 81
With Secretary of State Bryan
urging the democratic party to
face the issue as a national ques-
ton
In fact, with every indication
of the increasing importance OF
the question of liquor or no liq-
uor, government officials, con-
gressmen and others are face to
face with the question, How shall
revenue be raised to take the
place of internal revanue taxes on
intoxicating liquors IL constitu-
tional, nationwide prohibition be-
comes q fact?
1920 Millions to Lose. y
During the fiscal year ended
June 80, 1914, the total receipts
of the federal government from
internal revenue taxation on in
toxicating liquors of all kinds
amounted to $226,179,689.76.
The problem will not even
wait until national prohibition.
The internal revenue tax on liquor
is steadily decreasing as the
"drys" keep gaining. The total
sum received from this source for
the fiscal year ending June 80,
1918, was $230.146,332.14. There
was decrease last year, there
fore, compared with the previous
year of $3,966,642.3S.
That this decrease is becoming
progressively larger is shown by
the fact that for the first three
months of the fiscal year 1916
Gully 1, 1914. to Sept. 80, 1910
as compared with the first three
months of the fiscal year, 1914,
the internal revenue receipts fell
off nearly $6,000,00O.
What PrOhis Answer.
The organized opposition to the
saloon and the liquor traffic is not
without an answer to the ques-
ton OF taxation. They point out
the fact that states and nations
which have abolished the traffic
have found so large an increase in
taxable property to occur immedi-
ately as to present no difficulties
In raising all the revenue neces-
sary.
They point out that the Russian
government is actually getting
more revenue since the establish
ment of absolute prohibition than
1t was before, because the money
formerly spent for vodka is being
invested in tangible property val
ues which are consequently pro-
ducing a much larger total tax.
The state Of Georgia, they
say, actually had to reduce
the rate Of taxation, because
the amount OF taxable prop
erty enormously Increased
after the establishments OF
prohibition.
But they admit that our federal
government is in a somewhat diff
ferent position; because it does
not tax property values directly. A
number of plans. therefore. have
been suggested. z
Raise Income Tax.
In the first place, it is pointed
out that our income tax law is a
mere beginning in taxing inctlmes.
A moderate increase In the rate
Of taxation on the higher incomes
would yield without any difficulty
all the money lost by abolishing
the LIQUOR traffic.
This would have the popular
support because Il would tend still
further to eQualize the burdens of
government, shifting them to the
shoulders best able to bear them.
and off the shoulders OF the
poorer classes which now really
pay this tax through their con-
sumption Of liquor.
Another method proposed OF
raising the necessary revenue ID
the taxation Of Injuries. Thit
again would bear on the rich, and
those best able to bear II. Lux.
uries, 1t is claimed, could be taxed
both when imported into. tho
country, and when consumed, and
would be much more juxl
method OF >taxation than th<
present.
II the government desired Il
60 Into q still more f,1ndan,entn'
a. radical eplrtIon = ~ ~