Author 
 
 Title 
 
 Imprint 
 
 16—47372-3 
 
4"v, 
 
 THE TAX BILL. /^''^ % 
 
 SPEECH s^..,,,,,,?^ 
 
 OF / 
 
 HON. THADDEUS STEVENS, 
 
 OF PENNSYLVANIA," 
 In the House of Representatives, April 8, 1862. 
 
 The House having proceeded to the consideration of the amendments 
 . reported by the Committee of the Whole on the state of the Union to tho 
 bill (H. R. No. 312) to provide internal revenue to support the Government 
 and pay interest on the public debt — 
 
 Mr. STEVENS said : 
 
 Mr. Chairman : We are now about to take final action on 
 this important bill. If it should become a law, it will undoubt- 
 edly be a subject of comment among well-meaning people, and 
 be used as an engine of mischief by unprincipled men, who pre- 
 fer the possession of power to the prosperity of their country. 
 These remarks are not suggested by the conduct of any of the 
 members of this House. I take pleasure in saying that in the 
 Committee of Ways and Means there was the entire absence of 
 all party feeling, and the most cordial desire of every member 
 to promote the public welfare. And I have a strong hope that 
 the same spirit in this House will give this measure a unani- 
 mous vote ; and that no member will shrink from his share of 
 the responsibility. But while such is the patriotic spirit of this 
 body, I cannot be blind to the use which will hereafter be made 
 of it by small politicians. I will therefore say a few words in 
 its defence. 
 
 The first question which will suggest itself to every citizen 
 will be, was it necessary 7 For, if unnecessary, it is v/holly in- 
 defensible. I will assume that every loyal man admits the 
 necessity of everything required to extinguish this wicked re- 
 bellion. To do that requires armies and navies. To sustain 
 them money is absolutely necessary ; for the soldiers of the Re- 
 public must not go unpaid, whatever it may cost the civilian. 
 Money can be had only through loans; but loans cannot behad 
 unless, at the same time, means be provided for paying punctu- 
 ally the interest. This nation must never repudiate her debts. 
 
This brings us to the direct question, how much must be annu- 
 ally raised to pay such interest 1 If the war were to end now, 
 or within sixty days, we could tell very nearly. I suppose our 
 debt on the 1st day of July next will not be less than $800,000,- 
 000. When, some time since, I had occasion to address the 
 House on the Treasury note bill, I stated our daily expenses at 
 ^2,000,000. They are now, and have been for some time past, 
 over $3,000,000 a day. It is plain, therefore, that the sum I 
 have stated will be rather below than above our indebte'dness at 
 the end of this fiscal year. The interest, at 7.30, will require 
 about sixty millions of dollars annually. How much this will 
 be increased by the necessary sacrifice of our bonds, owing to the 
 unfortunate specie clause in our Treasury note bill, it is hard 
 to conjecture. The ordinary peace expenses of Government wi^l 
 not be less than $70,000,000+$60,000,000 ; these together will 
 be $130,000,000, independent of the increase in our pension list. 
 My learned colleague from Vermont estimates the revenue from 
 this bill and from customs at $163,000,000. We have been so 
 little accustomed to national taxation, that our statistics and 
 means of ascertaining the actual product of this bill are very 
 scanty. Any estimates must necessarily be very imperfect. 
 Much mill depend on the amount of trade and the prosperity of 
 domestic industry. 
 
 I am fearful that my colleague has over-estimated the amount 
 for the first year. But for the second year, when the stock on 
 hand which will escape this tax shall have been consumed, I 
 believe the amount will go considerably above his estimate. But 
 as the amount of interest for the first year will be considerably 
 less than the second year, I have a confident hope that this bill, 
 ■with our other revenue, will raise at least $15,000,000 beyond 
 the interest and ordinary expenses of Government. If our debt 
 should not be increased beyond $1,200,000,000, and commerce 
 should revive, I believe, in after years, we shall have a surplus 
 of $50,000,000 to apply to the reduction of the debt. This cal- 
 culation is merely hypothetical, as I cannot foresee the course of 
 the Government in dealing with this rebellion. If they should 
 use the legitimate neans in their power, I have no doubt tliat in 
 ninety days the r^ 'Is might be so crippled that our army could 
 safely be reduced to one hundred thousand men, and five sixths 
 of the present expenses be saved. In that case I feel no hesi- 
 tancy in predicting that not another dollar of taxes need ever be 
 
3 
 
 imposed on the people to defray our whole debt. If the Gov- 
 ernment should further determine, in accordance with the prac- 
 tice of nations, the dictates of wisdom and of justice, to make the 
 property of the rebels pay the expenses of the war which they 
 have so wantonly caused, this tax need never be collected beyond 
 the second year. 
 
 But if the Administration should deem it wise to prolong the 
 war, and suifer the loyal citizens to be oppressed, to show mercy 
 to traitors, tlie people must expect further and heavier burdens. 
 In selecting the objects of taxation, the committee have found 
 it necessary to visit many articles which they would have gladly 
 spared. They have, however, laid no burdens on those who 
 have but small means. They have exempted property and busi- 
 ness below the value of $600, so that the poor man's tenement 
 shall not be disturbed by the tax gatherer. For the same rea- 
 son they have laid no poll tax. They have, no doubt, notwith- 
 standing their best efforts, failed to equalize the burden to the 
 extent which they desired. They have attempted to raise the 
 largest sums from articles of luxury, and from the large profits 
 of wealthy men. But even on these articles the tax is light 
 compared with that of other countries. Take spirits as a sam- 
 ple. You may call it a luxury or a nuisance, as best suits your 
 taste. The excise in England is ^2 50 per gallon ; here, fifteen 
 cents. Tobacco stands in the same list. Even now, when Eng- 
 land has reduced her tariff, her duty on the raw material is sev- 
 enty-two cents per pound ; on manufactured, or cigars, $2 16 ; 
 on snuff, $1 44 ; on stems and scraps, seventy-two cents. In 
 this bill, the raw material is free ; manufactured, ten cents per 
 pound ; cigars, ten cents ; smoking, five cents ; snuff, eight 
 cents ; scraps, nothing. Where we have laid a tax on the do- 
 mestic article, the committee have adopted the principle of 
 laying compensatory duties on the foreign article when imported. 
 This we deem necessary to retain the home market, and not to 
 discriminate against our own industry. 
 
 The income tax has been found very difficult to adjust so as 
 to escape double taxation. But the committee thought it would be 
 manifestly unjust to allow the large money operators and wealthy 
 merchants, whose incomes might reach l^undreds of thousands 
 of dollars, to escape from their due proportion of the burden. 
 They hope they have succeeded in excluding from this tax the 
 
tax the articles and subject^ of gain and profit which are taxed 
 in another form. 
 
 The committee have been greatly embarrassed by the Cana- 
 dian reciprocity treaty. They have been obliged to omit many 
 articles which, with a light tax, would have produced a large 
 revenue. This is but one of many illustrations of the evil of 
 commercial treaties, which are in direct violation of the letter 
 and spirit of the Constitution. The treaty-making power has 
 no more right to regulate commerce than it has to declare war 
 and raise armies and navies. 
 
 I have no fear that the loyal people of the free States will 
 complain of any burdens which may be necessary to vindicate 
 the authority of the Union, and establish on a firm basis the 
 principle of self-government and the inalienable rights of man. 
 So long as tlus money is honestly and economically expended, 
 they will not repine. While the rich and the thrifty will be 
 obliged to contribute largely from the abundance of their means, 
 we have the consolation to know that no burdens have been im- 
 posed on the industrious laborer and maclianic ; that the food of 
 the poor is untaxed ; and that no one will be affected b}'' the pro- 
 visions of this bill whose living depends solely on his manual 
 labor. 
 
 WASHINGTON, D. C. 
 
 SCAMMJaX & CO. PRlNTiaW, COKNKU OF SIsCONU KTKEKT AND INDIANA AVENUE. 
 
 1862. 
 
8 952 21-2 910 
 
 ssaaoNOOdo AHVHan