The Richmond Virginian. (Richmond, Va.) 1910-1920, 1919-03-24
OFFICERS bEPRECATE
FAILURE OF CONGRESS



Glass Is one of the many high officers
In washington, in and out of congress.
who deprecates tho failure of con-
gress TO enact Legislation for the en-
forcement of the nationwide dry law
effective July i. Had the congress
which adjourned recently enacted
- III * :. ~ AZ. -. i.
missioner of internal revenue and his
many deputies would have been made
much easier. for they could have pro
ceeded promptly to prepare In ad-
vance for the task which is before
them.
While they naturally are not idle, In
view OF the demands which are to be
made upon them, and are preparing as
nest they can In the absence of def
rite knowledge Of enforcement law to
meet the situations certain to come,
yet this task, II will be apparent. is
beset with difficulties.
In these days when talk is rampant.
some OF II bordering almost upon trea-
son. OF ignoring the dry law. 1t Is
cheering to note that such high Off
GERS as Secretary Glass, Commits
sioner Roper and others are making
known their thorough sympathy with
Inc dry order of the president, and
the coming nationwide drought I'M
der the new constitutional amend
ment.
I. In this connection an interesting
chapter may be taken from the recent
annual report OF Commissioner Roper
In which he discusses the various
sources of internal revenue past and
present, and shows plainly that even
prior to the entrance of The United
states into the war that alcohol and
aicoholic beverages were declining In
Importance as sources of internal
revenue"
In view of this statement the
croaker who formerly whined about
the government being without sufYi-
Gent revenues should prohibition re-
suit is simply an unpleasant memory.
MIR. Roper said.
The taxable year 1918 marks for
|, the internal revenue service the
close of decade of transition from
excuses based on expediency to com
prehensive and essentially different
system of taxation. The main sources
of receipts since the beginning of the
system of internal revenue have been
aieonoIic beverages and tobacco. The
transition priod began with the act of
august 5. 1903, which provided for
an excise tax upon corporations meas
ured by income. The income basis Of
taxation was made capable of extern
sion ny ratification on February %.
1913. OF the sixteenth amendment to
the federal constitution. Following
the amendment of the constitution
came the act of October 3, 1914, which
superseded the corporation excise law
OF 1909. and prescribed direct tax
upon incomes of corporations and
upo nincomes of individuals.
FOR some time prior to the en-
trance of the United States into the
war * was evident that alcohol and
alcoholic beverages were declining in
Importance as sources OF internal rev.
enue. Moreover, the foreign trade
situation created by the war prevent
ca the customs laws from producing
as much revenue as In previous wears
These conditions accelerated the de-
Veiopment of income tax legislation
and were responsible for the enact
rnents of September s. 1916. and
March 8. 1917. under which higher
rates We're prescribed and other
changes made In the system SO as to
yield greater amounts from this new
source.
When the government was re-
CURED TO raise the vast sums neces-
sary for the support of our military
program the congress naturally turn
ed again to this new source of reye
nue., which was readily capable of ex-
pansion. The radical changes
wrought by this transition In the COM
pletion and scope of internal revenue
taxation are strikingly evidenced hv
the outstanding statistics.
OF the total Internal revenue col
iections in 1914 the individual and
corporation income taxes constituted
less than l6 per cent In 1918 they
constituted more than so per cent, In
come taxes collected in 1914 were less
tnan sixty-one million dollars; in 1918
the collections were almost three thou
sand million dollars. Alcoholic bey-
erages and tobacco yielded in 1914
about 80 per cent OF the total reve-
MUGS. The amount was S306,lee,s2S.
81 ka...s ss-sssEeSs.5 II ~ eeSe.sess 4.s.s ~
constituted slightly more than 16 per
cent and amounted to $600.0 2S,2o3
The change has not been merely
the transference OF the tax burden
from one to another set of objects, but
the transformation from n system of
heterogeneous taxation based on ex-
pediency TO comprehensive system
conforming to essentially different
economic principles"