The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1915-12-16
TO TAX WHISKY?
John BarleycOrn May Help to
Raise More Revenue.
HIS Is More of q Luxury Than
Automobiles Are.
RAiNEY WILL PUSH ISSUE
Illinois Representative Wants
Democrats to Take Action.
Twenty-Five Million Could Be
Added to Treasury Easily.

Washington, Dec. 16.-Why not tax
whisky?
This question is going to be put up
to the Democrats in congress with
some vigor. The so-called leaders of
the party have suggested all sorts of
things as susceptible of taxation from
tooth paste to bank checks, from the
farmers automobile rugged to run
small machinery, up to the income of
a $4,000 a year CLERK.
Nobody has thus far publicly and
urgently suggested that there is no
particular sanctity about whisky
which should keep the revenue tax
upon it at 81 a gallon as it was fixed
in the middle of the last century.
Representative Henry T. Rainey of
Illinois, the ranking member of the
house committee on ways and means,
is determined to force this issue on
that committee when it meets to pre-
pare new revenue legislation. If he
cannot get favorable action by the
committee. he will take the fight to
the floor of the house.
High Time to Act
1T is high time" said Mr.. Rainey,
that the Democratic party should
recognize the fact that whisky, and
for that matter, beer, are products
that should be made to furnish
greater part of the national revenue.
The Democratic party cannot afford
to be looked upon as being tied to the
whisky interests. That it is not in
any such unholy alliance is made clear
enough by the long list of Democratic
states which are also dry states. But
at moment the demand for greater
measure of national preparedness for
defense cOmpelS added revenue the
administration comes up with a list of
fit subjects of taxation from which
whisky and beer are conspicuously alb
sent.
The stamp tax on checks will cause
the maximum amount of irritation
with the minimum amount of reve-
nue.. 1t is utterly unjust in operation
as the man who pays IS grocery bill
by check puts on the same stamp as
the millionaire who gives a $4,000
check for bit of jewelry.
The tax on horse power of automo-
biles and on gasoline is in no sense a
tax on luXuries. The gasoline engine
cars, and the cars themselves have
long since ceased to be clasSed as lux
uries. The reduction of the income
tax exemption by $1,000 is more de-
feasible, but the proper way to get
revenue from that source is to in
crease the percentage of the tax on
big incomeS-most of which are the
fruit of special privilege granted by
the government and should be paid
for.
Whisky the Thing.
whisky, which needs no encour-
agement, is more lightly taxed in the
United States than in any other cOun-
try The British tax is $40 a gallon
on spirits at the distillery. Ours is
$1.10 when taken out of bond. But
Scotch, Irish and Canadian whisky sell
over the bars in the United States at
just the same price per drink, though
we impose tariff on the imported
goods.
We could get something like S25,-
100000 additional revenue" continued
Mr. Rainey, from whisky without
raising the tax rate but merely by re-
pealing the outage laws, by virtue of
which the distiller pays a tax not on
the whisky he puts in bond, but that
he takes out.
There is a great difference.
Up to 1880 the tax was S11O
a gallon on the whisky put in
the bonded warehouse. About that
time the whisky trust attained
the zenith of its power and de-
vised the clever idea of getting the
outage legislation which assesses the
tax. upon the whisky as taken out of
bond.
''Thereupon every device was en-
ployed to aid the evaporation of the
whisky while in bond. Warehouses
that had always been cold were
heated. Barrels were turned several
wood might continually soak up the
improve the validity of the whisky, so
crease its price ) cents per gallon
for every year in bond, but it de-