The Lakeland evening telegram. (Lakeland, Fla.) 1911-1922, 1918-09-04
WAR TAX ARTICLE NO. z
y y n II u II u u q q u Il q q O

LAX DIS q means OF raising war reve-
nue. really is no,hing now to the
lAmcrican people.
1t was inaugurated in 1861, at a
time when money was needed to f.
nance the Civil War, and it continued
in operation until 1872. The first tax
on incomes was authorized at rate
or three per cent on all incomes above
$500 per annum. This was increased
IN 1862 and again in 1865, until in
comes between 5000 and $4,000 were
taxed at five per cent and those above
$4,000 at ten per cent.
There were few, If any, evasions of
the tax, according to financial histor-
ians, and, in 1865, despite the fact
that the entire country was in an alb
normal condition because of thewar.
$32,O50,OOO was realized by that
means. But the spirit displayed by
the patriots Of that day in meeting the
obligations Of the income tax, is but
typical of the willingness which all
OF the people Of the country showed
during that sad period, to rise TO the
emergency in the matter of shoulder.
ing the burden of extra taxation.
foreign minister, noting this zeal,
remarked to Secretary Seward: 81 am
not surprised to see your young men
rushing enthusiastically to fight for
their flag. have seen that in other
countries. But I have never before
seen a country where the people are
clamorous for taxation"
This clamor for taxation on the part
of the people was largely due to the
fact that at the beginning of the war
Congress seemed to delay when it
came to the question of properly f.
nancing the struggle. A new tariff
law-the Morrill, bill-which had been
Framed during the peaceful days Of
1850, was enacted March 2, 1861, and,
while the revenue derived from It
would have been adequate had the
commerce of the nation remained in
normal condition, 1t was entirely in
adequate when the commerce became
disrupted.
Loans were to be largely depended
upon to furnish the war revenue. t
being thought by the legislature that
the system which had worked so we'll
during the second war with England
and the Mexican war would be equally
successful during the time Of Civi,
War. AS result the ratio of loans
to taxes during 1S61-1Se2 was So So to
81; in 1S63-63 as $5.51 to 81; in 1S63-64
las 1888 to 81, and in 1S64-65 as So. g.
as 1888 to 81 and In 1884-65 as
S295 to ST..
Secretary Chase of the Treasury
rather thought no extraordinary taxa
tion was needed beyond that necessary
to meet the interest on the new loans
authorized and to reduce small part
of the debt annually. His tax recon
mendation of December, 1861, was in
tended to yield only small fraction
OF the amount expected from the
loans, but he did ask for internal rev.
enue duties and in January, 1862, Con-
|gress adopted more determined pol
icy and announced its intention to
enact revenue measure which would
yield $15O,OOOO 900 annually.
! The principle OF this measure was
to levy moderate duties upon large
number OF commodities rather than
heavy duties upon few. It included
rates upon Injuries represented by
spirits, ales, beer and tobacco; IL
censes upon occupation, duties upon
manufactures or products, auction
sales, carriages, yachts, billiard tables
and plate; upon slaughtered cattle,
hogs and sheep; upon railroads,
steamboats and ferry boats, railroad
bonds, banking institutions and in
surance companies, upon salaries and
Ipay of officers in the service Of the
United States; upon advertisements.
income and legacies and an extended
Hist of stamp duties.
From this II may be seen that this
system was very similar in nature to
The war time system now In vogue
and that the new measure of the pres
ent day may be said to have been
modelled upor the Civil War emer-
gency bill.
Owing to the unsettled condition Of
business the returns from this wide
reaching revenue bill were disap-
pointing and for the fiscal year of
1928 but $37,64O,OOO was realized
instead of the $15,OOO,OOO that had
been anticipated 1t was therefore
found necessary to make change in
the policy of the bill and this was
done in 1864 when the rate was radi-
cally increased being doubled and ev-