The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1933-12-15
National Topics Interpreted

or heOenue
some old records about the consump-
ton of liquor in the days gone by.
One of the things / found was that
1914 was the record year and that in
those twelve months our nation, then
consisting of approximately 00,000,000,
had disposed of almost S00,000,0O gal
Ions of whiskys, wines and other
liquors and beer, that slightly more
than S0,O00000 of the total was in
whisky.
From those statistics, I learned also
that the federal government had OBJ
tanned roughly $430,000,0OO in taxes,
and that the states, counties and mu-
inequalities had raised enough addi-
tional revenue from liquor and occu-
pational taxes, such as licenses for sa-
looms, to make the total tribute paid
by liquor exceed $1,000,O00,000. The
taxes in effect were distributed and
passed along until the consumers of
these beverages paid them. There
were strong anti-tax fights launched
in many places, but the taxes were
duly 'levied, collected and paid"
Plenty of taxes are being levied
these days, but collecting them is
different proposition, because most of
our taxes are handled differently than
liquor taxes.
To get back to 1914, the consumption
of liquors was accomplished by the
people in about nineteen wet states.
We have started the new era (Which
repeal of the Eighteenth amendment
must be held to represent) with twen-
ty-four states in which liquor sale is
legal. The federal tax rate is roughly
the same as it was twenty years ago,
although it has been higher in the
meantime due to war levies.
The rate, of $1.10 a gallon on hard"
liquor will be the rate operative until
congress acts; the tax of So barrel
on beer that was levied when the three
point-two product was legalized early
this year compares with Sc per barrel
In 1914, and there is about the same
relation to other taxes of twenty years
ago. SO the federal government and
the states, counties and municipalities
are going to start with a new source
of revenue to relieve other tax sources
that are heavily burdened. Which is
the point to which so much attention
has been directed in urging repeal.
1t is matter of governmental pol
icy, of course, as to where funds will
be raised by taxes to defray costs of
government. By advocating repeal,
those who supported that course have
in effect argued for transfer of taxes
only from one base to another. But
there Is lesson in it, as 1 see the
thing. This transfer of tax has been
from levies on productive enterprise
and commerce and industry that may
be called necessity back to an item
of use in life largely of the character
of luxury. The same is true of the
taxes on tobacco. Tobacco taxes con-
sistently have yielded about $500, 000,-
600 annually, and yet constant smok-
ers, of which your correspondent hap
pens to be one, have objected little
The answer seems to lie in the fact
that so little is taken from one person
at one time. Since repeal had the sup
port of such vast portion of the ma
TONS population, one can hardly ar
rive at any other conclusion than that
this method of taxation has their APP
prevail. The circumstance has given
rise to some conjecture, also, as to
whether sales taxes generally might
not serve better than such things as
income and property taxes under
which human backs are bending.
Now that repeal has been accom-
plished and the states and local COM
munities can deter
Important mine their own
Questions courses in dealing
with the liquor traf-
fic after lapse since 1919, two other
questions are agitating everyone who
is interested in sound government.
Each of them Is national in it's scope,
but one Of them is wholly local in its
application. refer to the problem of
revising or re-establishing the tax
rates by congress, and the settlement
of what are distinctly local issues re-
lating to whether there will be sale of
liquor and how those shall be handled.
In other words, it is the old, old ques-
ton of local optien.
As soon as the congress gets back
In Washington after January /, legis-
lation will be submitted by the admin
istration to effect permanent control
Of Gnnnr FRO nd 1ox oh, 49,
the legislators think proper to assess
against liquor. This problem sounds
simple. but 1t is far from it. There is
obviously proper tax base that will
yield the maximum of revenue and at
the same time be low enough to dis
courage bootlegging activities which
necessarily must have big margin of
profit
There is at this time considerable
support for the idea that the present
tax rate Of $1.10 per gallon will re-
main unchanged for six months or so.
The idea behind this is that a tax rate
so low will make whisky cheap and
bootleggers cannot compete. If they
are once driven out, this school of
thought contends, they will have great
difficulty in getting started again.
have been unable to obtain any ac-
curate measurement of the strength
behind this movement, but there is no
doubt that it is finding favor.
AS to the local option problem.
Washington observers are able only
to guess that there will be many heat
ed fights in numerous communities
throughout the country. People al
ways have fought over the prohibition
question since it has been an issue, and
they will argue about it now In many
areas that otherwise are noted for
their peaceful atmosphere where poll