Year: 1872

cial paper, while all involve the employment
of multitude OF agents for the sale OF
stamps. While productive, they are annoy
ing. expensive OF collection, and easily
ovaded. II the special taxes on spirits, to-
bacco, and beer can be consolidated with the
tax now levied on the manufacture of these
articles at the distillery, brewery, and manu-
factory, and the special tax on gas and bank
ers is repealed, we can dispense with the
vast army of revenue officers, and concen-
trate the attention and surveillance of the
internal revenue officers to the places where
whisky, tobacco, and beer are made. II we
can dispense with the stamp taxes the whole
system of internal taxes win disappear, ex-
cept excise taxes on whisky, tobacco, and
beer, which, by common consent of both
producer and consumer, are recognized as
peculiar objects OF taxation. The taxes on
circulation and deposits of national banks
do not enter our internal revenue system, but
are rather regarded ms fund from which to
pay the expense Of printing the notes and
niajTtaining the system. The excess collect
ed from this tax over these expenses may
properly be regarded as return payment
for franchise. This tax is collected strict
ly by the Treasurer of the United States and
should be retained. If i is deemed best to
retain this tax as against other banks and
bankers, II may be collected in the same way
by the bank examiners.


In advance of any definite measure dealing
with internal revenue, am prepared to say,
without committing anyone else, that we can
and ought now to repeal all internal taxes,
except on whisky, tobacco, and beer, and to
consolidate and simplify them The income
tax expires with the collection of 1871,
which, on personal incomes, is assessed dur
ing this month


Experience will convince the body Of our
people that system of national taxes which
rests the whole burden Of taxation on con-
sumption, and not cent on property or In
come, is intrinsically unjust. While the ex-
penses of the national government are large
ly caused by the protection of property, 1t
is but right TO require property to contribute
to their payment It will not do to say that
each person consumes in proportion to his
means. This is not true. Every one must
see that the consumption of the rich does
not bear the same relation to the consump-
ton of the poor as the income of one does
to the wages of the other. AS wealth ac-
cumulates this injustice in fundamental cases
of our system will be felt and forced upon
the attention of Congress. Then an income
tax carefully adjusted with proper dis
elimination between income from property
and income from personal services, and freed
from the espionage of our present law, will
become a part of our system. II these
changes in our internal revenue laws are
made, it will reduce internal taxes thirty-one
and one-half million dollars, or from one
hundred and twenty-six million dollars
to ninety-four million five hundred
thousand dollars. But this reduction of
taxes will be accompanied by reduction of
our expenditures of not less than sixty-fye
million dollars; and il new regulation as to
the whisky tax should prove practicable
there will be much greater reduction. This
will leave us net loss of revenue of twenty
nine million dollars, and with margin OF
S21 000, 900 for a reduction of the tariff duties.





now briefly consider the measure pro-
posed by the Committee on Finance. In
stead of repeating entirely the duties ON
coal, salt, tea and coffee, we propose large
reduction on them. We reduce the duties
on lumber, rice, lead, and other articles.
The raw products of industry on which pres
ent duties are excessive are largely added to
the free list, and we propose reduction OF
10 per cent. of the duties on most OF the tex
tile and metallic fabrics. The reduction pro-
posed is S22, 2,507, 1858, but we may fairly antic-
ipate the lessening of the expenses and such
an increase of importation as will reduce the
loss to the revenue to $21 100000