The Washington herald., 1916-01-02
Taxes and Appropriations.

ScSen States VIII go under proniDif1on law to-
day and the Federal government will lose more
than onethird of the revenue it has received from
those States. They are Arkansas, Colorado, Idaho,
Iowa, Oregon, South Carolina and Washington.
The total revenue received from these seven
States last year so,I7I,s24, and of that total
S3,5I2,4o2 came from internal revenue alcoholic
liquors. With those taxes cut off the Federal
government will next year receive $5,o5o,472 reve-
nue. from the prohibition States II
will furnish another demonstration of the increas-
ing inequality of taxation for the support of the
Federal government
These seven States have nearly 100000 pop
ulation and nearly S2oooo.oooooo of wealth. While
they have onetenth of the population of the United
States and one-ninth of the total wealth of the
country they paid only -forty-6fth of the reve-
nues to support the government last year, and will
pay only one-seventy-fourth of the revenues this
year, unless some of the taxation imposed by
Congress shall reach them. The income tax does
not now reach them, for last year these 100000
prosperous people paid less than 100000 of the
income tax, less than onefortieth of the total.
They paid SI,5oo,ooo of corporation tax, one
twenty-sixth. They all agricultural and mining
States and those industries prospered more last
year than others. They received large help from
the Federal government for conservation, river i'm
provements, public buildings, aids to agriculture
and protection to mining, not to mention pensions
and salaries for Senators, Representatives and
other government officials, including more than
100000 for the salaries of internal revenue col
lectors who will now have little to collect but
will hardly be abolished These seven States re-
cevc from the Federal Treasury every year con-
siderable more than they pay into that treasury
autos, but not to taxes on iron and its pro-
ducts, and they httingly represent large part Of
the American people who object to any taxes which
touch them, and at the time object to any
decrease in the appropriations by Congress which
reach them their interests. The amount of
revenue that will be lost to the government
account of prohibition in these States, will
be insignificant, but the policy is bound to in
crease the embarrassments of Congress in dealing
with the revenue question. When the greater part
Of the Federal revenue came from customs taxa
ton, no one could exactly determine who paid
those taxes, even = they were paid by the con-
sumner rather than by the foreign producer coming
into our markets. But with two-thrds of the
nuc now coming from excise and income taxes
have approached enough to direct taxation to
enable the government to see not only where the
taxes are paid, but also to enable the people to
see where new taxes will be paid before Congress
can enact the law. They fully awake this
question and watching Congress to that the
new taxes do not touch them. ,
Chairman Kitchin is in position to understand
the old saying that it is beyond the wisdom of
4.
the same time As he proposes this tax and that
tax he will find large numbers of people urging
their Senators and Representatives to dispose. 1t
wouldn't be at all surprising to Mr.. Kitchin
and Senator Symonds some day soon, appealing
to the shades Of Nelson Dingley and Nelson
Aldrich for help in leading the country back into
the good old path travelled in the good old days
when the tariff filled the Treasury from no one
knows where, and all the people had to do was to
discuss the great mystery and try to explain it
either from the teachings of Hamilton those
of Jefferson. After century of discussion and
dispute the question to who paid the tariff
not settled not until the goose that laid the golden
egg had been picked of its finest feathers, and the
income tax came, could any one tell who paid the
taxes to support the Federal government-but the
people had subject for perpetual argument which
was as impossible of settlement those
original sin and foreordination. The tariff could
be discussed at the corner grocery on the Chau-
auqua circuit without danger of getting too
the pockctbook of any of the debaters Not so
the income tax the tax gasoline or chewing
gum or perfumery. Let man envy the position
Of the two great leaders from North Carolina
who must vote for prohibition and at the same
time find revenues for Secretary Daniels navy pro-
gram without imposing new taxes that will touch
the people in any prohibition State.
The Persia.