Rensselaer Republican, Volume 17, Number 12, Rensselaer, Jasper County, 27 November 1884 — INTERNAL TAXATION. [ARTICLE]

INTERNAL TAXATION.

A Policy of Reduction in the Future Indicated. [Washington dispatch to Chicago Daily News.] There is every reason to believe that in his coming message President Arthur will repeat the recommendation he made two years ago in favor of the repeal of all taxes on manufactured tobacco, cigars, cigarettes, and snuff. Secretary McCulloch has frequently declared himself to be in favor of wiping out all these tobacco taxes, and if is confidently expected here that he will join the President fir urging Congress to take this step. The total receipts from the in-ternal-revenue taxes on tobacco, cigars, snuff, and cigarettes amounted to a little over $26,000,000 during the fiscal year 1884. The movement in Congress last session in favor of the repealing of. the tobacco taxes was very formidable. Two or three attempts were made in the House toward the end of the session to take up what was known as the fruit-brandy bill, the object ■ being to attach thereto an amendment wip- . ing out the tobacco taxes. The repealers were surprisingly strong in numbers, and • the support which they will receive from the President and Secretary of the Treasury this winter will doubtless greatly encourage them. There is an impression in the Treasury Department that Secretary McCulloch will recommend a reduction of the whisky tax to 60 or 50 cents a gallon. The prospect is that four movements against the surplus revenue will be made this winter. One is in the shape of ' the pension bill which passed the Senate last winter and is now on the Speaker’s table. This bill, if passed by the , House, would absorb about $25,000,C00 an- i nually. Another is the Biair educational ■ bill, which was passed by the Senate Last J winter and is now in the House. This j would swallow an average of $10,000,000 a year for eight years. A third is the tobacco-tax-repeal scheme, which pro- . poses to wipe out over $26,000,000. i A fourth is the proposed Spanish treaty, which will be presented to the Senate for ratification. If ratified by the Senate and carried into operation by an act of Congress, this treaty would do away with over $30,000,000 of revenue. All of these movements will have numerous supporters, and there are in prospect several sharp parliamentary battles. The interesting question is: “Will the surplus revenue be reduced by a reduction of taxation or by an increase of expenditures?” It is regarded as wellnigh certain that a majority of the revenue-reformers in both branches of Congress will prefer to maintain the status quo rather than consent to a repeal of the tobacco taxes. They aye opposed to getting rid of these taxes in advance of a reduction of customs duties.