Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1916-02-07
REVENUE IN CASE OF EMERGENCY
by FREDERIC }. uAsl<IN

what sort OF an emergency tax do
you favor? Would YOU rather have II
levied on automobiles or checks or
!and values or munitions?
The chances are that YOU see no OBJ
lection TO any OF these methods OF
raising revenue unless they touch your
own pocket, in which case YOU con-
slider them unjust and iniqu!tous bur
uens, ana write to Your Congressman.
ufsing him to vote against them.
That is the trouble with all direct
or semidirect taxes. Th,ty are the most
economical way Of Increasing Uncle
Sans income, but they are so Intensely
unpopular that Congress very much
diSl!kcs TO impose them. The American
people prefer TO meet their national
obligations by q bond or note issue
which merely posiponcs the payment
or by higher tariff, which Increases
II by paying bounty to the indus
tries These methods are expensive
but they are indirect. You part with
money, but you don't see it 20.
What Emergency Ink TX.
y part Of the extra money that Uncle
Sam needs this year will probably he
obtained by lowering tho income-tax
exemption, and a part OF II from the
tariff by repeating the free sugar
clause in the Underwood law. In adj
clifton TO these methods. II Is quite
probable that an emergency tax viii
have TO hc levied An emergency tax
may be roughly defined as an internal
tax which is added to the ordinary
revenue tax in order to meet some un-
expected necessity.
The last emergency tax levied by
Congress became a law in October
1914 and il was made absolutely ncccs-
sary by tho European war. which
threw American business badly out Of
gear. Because OF the obvious necessity
Of raising money at once, this law met
with little opposition. 1t provided for
"a tax on wine, champagncs, Nqucurs.
grape brandy. an additional tax OF 30
cents barrel on fcrmcntcd liquors.
special taxes on bankers, brokers and
other financial operators, on documcn-
tary stamps. and on pcrfumcry and
cosmetics This Law yielded about S52.
600 600 by the end OF the fiscal year.
and IL was renewed by Congress for
another year In December.
Wars have always made necessary
the levyinc Of heavy emergency taxes.
At such times. however. patriotism and
tho spirit Of natiOnalism arc at such
q high pitch that tremendous taxes can
be levied without any serious protest
from the pcopIc. Congress had TO levy
emergency taxes 10 pay for the span
ish-Amcrican War. and for the most
part they were gladly met.
Tn,rs During Civil Wnr.
During tho Clv!l War taxes were. OF
course. much heavier Clothing, boots
we're taxed 6 per cent; books and mag
aZincs per cent revenue Of i
cents nor ton was levied upon coal and
candy paid q tax OF about 2i2 cents
"A pound. Furniture WAS taxed per
cent, and gas Is cents per 1000 cubic
feet Even salt yielded revenue OF
70 cents per hundredweiGht Express
companies. lotteries railroads and
ships. auctioncers and billiard rooms
al,
nearly every necessity Of lifc--helped
to bear the burden OF the war.
Similar tremendous and widespread
burdens are now being borne by all
the peoples of Europe. because war is
a national emergency which the pop
ular mind can grasp. The United
States Is now facing n national flnan-
cial emergency. but it does not appeal
To the popular Imagination. The sug-
gcstion of 1-ccnt tax upon gasoline.
or upon any other commodity for that
matter. brings a prompt and vocifcr-
Gus protest.
Among the taxes suggested are
those of 80 cents per horse power OF
motor cars and perhaps Of other in
tcrnai combustion engines and OF L
cent per gallon on gasoline, The rate
at which the country is being motor
lied and the rapid cheapening of ser
viccablc cars naturally suggests TINS
AZ practicable means of raising the
money needed Likewise, the tremen-
dous voting power Of the motorists or
the country causes Congressman TO
look askance at the method. THIS Is
especially the case because the farm
or, who is the pet and first concern of
the House OF Representatives, is max.
ing more and more use OF the internal
combustion engine both for transpor-
tation and farm work.
Autouro bilc Associations Excited.
As soon rs this tax was suggested
one state automobile association got
excited and circulariZcd the country,
asking for contributions to fight the
measure if ii should be introduced in
Congress. These gentlemen pointed out
that an annual tax of SO cents upon
the horse power of every automobile
would amount to more than all the
other taxes paid by many citizens.
They werc right about that. But as
IL happened, no one had thought of
levying an annual tax upon the horse
power of automobiles. The so cents
per horse power would be paid out
once by tn" manufactures. That is.
Il twenty horse po yer machine would
presumably cost $40 more than before
the tax was levied. although tho rapid,
growth OF efficiency In the manufacture
of automobiles and tho standartliznt ton