The central tenet of Mellon's tax plan was a reduction of the surtax, a progressive income tax that only affected high-income earners. Mellon favored the wealthy holding as much capital as possible, since he saw them as the main drivers of economic growth. Harding called a special session of the Congress to address these and other issues, and Congress convened in April 1921. Despite opposition from Democrats and many farm state Republicans, Congress passed the Revenue Act of 1921 in November, and Harding signed the bill into law later that month. The act greatly reduced taxes for the wealthiest Americans, though the cuts were not as deep as Mellon had favored. The act reduced the top marginal income tax rate from 73 percent to 58 percent, lowered the corporate tax from 65 percent to 50 percent, and provided for ultimate elimination of the excess profits tax.
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