[155] Arthur agreed with his party, and in 1882 called for the abolition of excise taxes on everything except liquor, as well as a simplification of the complex tariff structure.[156] In May of that year, Representative William D. Kelley of Pennsylvania introduced a bill to establish a tariff commission;[156] the bill passed and Arthur signed it into law but appointed mostly protectionists to the committee. Republicans were pleased with the committee's make-up but were surprised when, in December 1882, they submitted a report to Congress calling for tariff cuts averaging between 20 and 25%. The commission's recommendations were ignored, however, as the House Ways and Means Committee, dominated by protectionists, provided a 10% reduction.[156] After conference with the Senate, the bill that emerged only reduced tariffs by an average of 1.47%. The bill passed both houses narrowly on March 3, 1883, the last full day of the 47th Congress; Arthur signed the measure into law, with no effect on the surplus.[157]
Congress attempted to balance the budget from the other side of the ledger, with increased spending on the 1882 Rivers and Harbors Act in the unprecedented amount of $19 million.