We may credit Uncle Sam with the expenditures that are required to meet the obligations of the war, and also for the conduct of the Government, equitably administered with the least interference with the freely chosen pursuits of the people:
This account is adjusted to the prospective revenue, predicated on receipts to date in the year 1890.
| I will therefore make Uncle Sam debtor to the amount of the war taxes which are collected under the internal revenue system on whisky. | $78,000,000 |
| To the amount of the war taxes which are collected under the internal revenue system on fermented liquors | 27,000,000 |
| To the amount of the war taxes which are collected under the internal revenue system on tobacco | 33,000,000 |
| To the amount of the war taxes which are collected under the tariff on sugar and molasses | 60,000,000 |
| $198,000,000 | |
| Add for elasticity in 1890 and 1891 | 2,000,000 |
| $200,000,000 | |
| REVENUE FROM WAR TAXES. | |
| We will credit Uncle Sam with the annual obligation for the payment of pensions already granted, now rated at $65,000,000, adding for arrears $35,000,000 | $100,000,000 |
We may now hope that the current annual pensions, aside from arrears, may not get beyond the sum named above, $65,000,000. It will be observed that the payment of arrears is the liquidation of a debt now in process of being audited, and that on payment the liquidation of arrears of pensions is final.
|
|
| We will credit Uncle Sam the amount of interest which must be paid on the war debt | 31,500,000 |
| $131,500,000 | |
| We will credit Uncle Sam with the amount which should be applied to the sinking fund for the extinction of the war debt | 48,500,000 |
| $180,000,000 | |
When we balance these war taxes against the war expenses, we find a surplus which may be carried forward to meet the ordinary expenses of the Government, $20,000,000, and this surplus will be subject to rapid increase with the growth-of population and the presently diminishing burden of debt and pensions.[1]
- ↑ Between the date of the preparation of this treatise in May, 1890, when it was written for submission to a private club, and the correction of the proof for publication, a Pension Act has been passed which may for a time take up this excess of war taxes above the previous war expenses, and even a little more. It is believed, however, from the best information that can be |obtained, that even under this act the current annual pensions will not exceed $100,000,000 a year.
On the other hand, the elasticity of the revenue which is due to the growth of the population and progress of the country, will be likely to render the avails of the taxes on liquor, tobacco, and sugar quite sufficient to meet even the extravagant pension-list under this and previous acts, and the diminishing amount of interest on the public debt, even without stopping the contribution to the sinking-fund, or providing for it in any other way. In English practice, which we might well adopt, such an extravagant Pension Act as that which has now been added to our previous ample provision would have been accompanied by a proposed tax intended to meet it specifically, like an income-tax or a renewal of the duty on tea and coffee. Such is not our habit of legislation, although it well might be.
