The Western news. [volume] (Libby, Mont.) 1933-current, 1933-12-14
1Ql|ollliit23'gq]|Sljij
National Topics Interpreted "a fFa%67fffY|A
by William Bruckart 1en-T{3T

casion to look uI
some old records about the consump
tion 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 100, 000,0 900
had disposed of almost 800,000.000 gal.
Ions of whiskys, wines and other
liquors and beer, that slightly more
than Sc 100000 Of the total was In
whisky.
From those statistics. I learned also
that the federal government had OBJ
tained roughly S430,OO0,0O0 In taxes,
and that the states, counties and mu-
inequalities had raised enough addi-
tional revenue from liquor and occu-
patlonal taxes, such as licenses for sa-
looms, to make the total tribute paid
by liquor exceed $1,O00,OOO,0OO. 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 a
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-fonr states In which liquor sale Is
legal. The federal tax rate Is roughly
the same as 1t was twenty years ago,
although 1t has been higher In the
meantime due to war levies.
The rate of $1.10 gallon on "hardn
liquor will be the rate operative until
congress acts, the tax Of SIS barrel
on beer that was levied when the three.
point-two product was legaIized early
this year compares with So 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 q new source
of revenue to relieve other tar sources
that are heavily burdened. Which Is
the point to which so much attention
has been directed In urging repeal.
It Is a 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 I 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, 0O0-
900 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
tion's population. one can hardly ar
rive at any other conclusion than that
this method of taxation has their ap-
prevail. The circumstance has given
rise to some conjecture, also, as to
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 CON-
munities can deter
Important mine their own
0uo.y;cr. 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 Its scope.
but one Of them Is wholly local In its |
application. / refer to the problem of |
revising or re-establishing the tax
.ates by congress, and the settlements
II what are distinctly local Issues re-
ating to whether there will be sale of
liquor and how those shalEbe handled. |
IN other words, 1t is the old, old ques-
ion of local option.
AS soon as the congress gets back
n Washington after January /, legls-
alton will be submitted by the admin
stration to effect permanent control
# liquor traffic and lay such taxes as
he legislators think proper to assess
Igainst liquor. This problem sounds
nipple. but II Is far from it. There is
obviously a proper tax base that will
'leld the maximum of revenue and at
he same time be low enough to dis
ourage bootleggng activities which
ecessarily must have big margin Of
rofit
There is at this time considerable
Import for the idea that the present
AK rate Of S110 per gallon will re-
naln unchanged for six months or so.
he idea behind this Is that tax rate
0 low will make whisky cheap and