Page:Popular Science Monthly Volume 50.djvu/770

748 clear that such an exemption constitutes another and indirect form of taxation incumbent on the American people?

——exclusive of the postal service, in which the receipts and expenditures closely balance—for the fiscal year 1896 were $326,976,200, of which $146,762,864 accrued from internal-revenue taxes, and $160,021,751 from customs.

Contingent on the modifications of the internal-revenue system above proposed, the annual receipts from this department, considered in reference to the special sources pertaining to it, would, without much doubt, be approximately as follows:

From distilled spirits, provided there is no exemption of any part of its product from taxation for any purpose, $100,000,000: a result more likely to be attained if the present ratio of tax, $1.10 per proof gallon, be reduced to its former rate of ninety cents.

From fermented liquors, with an increased tax to the extent of $1 per barrel, $60,000,000.

From tobacco, on the assumption that political and popular sentiment will not permit any increase of rates, $35,000,000; although, if a fiscal policy in furtherance of the best interests of the Government were alone considered, the annual accruing revenue from this source would be at least double.

From petroleum and its derivatives, $24,000,000.

From stamps, $30,000,000, which can be readily increased to $50,000,000.

From tea and coffee, under a twenty-per-cent duty, $20,000,000; under a duty of forty per cent, $40,000,000.

From sugar, such a rate of duty on its import as will insure an annual revenue of at least $50,000,000.

Total, $319,000,000, leaving a deficit, on an estimated annual expenditure of $500,000,000, of $189,000,000. To meet this requirement, the entire revenue from customs, other than from the imports of sugar (already considered), and incidental revenues to the extent of $15,000,000, are available.

Doubtless, to many the proposal to increase the existing number of special sources of national revenue, with modifications of existing rates, will seem inexpedient and unnecessary; but, with a constant tendency to increase national expenditures, it is only a question of time when such changes will have to be made; and the future record of the new administration and the new Congress, for good or for ill, will be largely determined by the manner they answer this question: Shall money be saved by new