The Daily Ardmoreite. [volume] (Ardmore, Okla.) 1893-current, 1921-12-07
Revision of Tax And Ad-
iuStment of Rate Hinted
Continued from page

Continued from page u
imum ate on the same basis would
involve a revenue loss of about $780,
600, 600, Other adjustments which
should be made would probably in
volve an amount equal to hat made
in the surtaX rates. The loss OF
revenue, however, would not be per
manent, for the reduced rates would
ultimately be productive of more
revenue than higher rates. due to
the increase in taxable transactions
Reiterating arguments that the eff
feet of high surtax rates is to keep
new capital out of productive enter
prise, and to prevent normal bust.
ness transactions with the result that
natural industrial development is re-
tarded, Mr.. Melons adds:
Tax is Nations Wealth
The idea seems to be prevalent
that in taxing large incomes, only
the person receiving the income,
and who is to pay the tax is really
concerned. This is n mistake. For
whatever the government takes, in
the way of tax, out of any income,
which would otherwise be saved and
invested, and thereby becomes a part
of the capital and of the wealth Of
the nation, affects not so much the
individual from whom it is taken as
II does the whole people of the coun-
try. in the direct loss of productive
capital. g.
After all. the wealthy Of the
country, upon which all the activi-
ties and the prosperity Of our peo-
pie depends, Is made up Of the pri-
vate property Of the individual citi.
zens--of all the people-and anything
that unnecessarily takes away from
the accumulated property neces-
sarily injuriously affects the people
as a whole
Tax Changes Explained
Discussing the proposed adjustment
of the tax on business profits, Mr..
Mellon suggests no specific rates,
but calls attention that the repeal
Of the excess profits tax made nee.
essary an increase of 9ls per cent
in the corporations approximately
10 per cent.
when we remember he writes,
that the great bulk of the bust.
ness of the country both large and
small is carried on under corporate
form and that the net income must
largely be distributed in dividends,
and that these dividends are then in
turn subject to surtax, in the hands
Ct persons receiving them, it is at
once seen that the resulting taxation
to persons engaged in productive bus
mess is very heavy. For instance a
stakeholder subject to surtax at 10
per cent really pays about 25 per
cent on his dividends; while n stock
holder subject TO a SO per cent sur.
tax would be taxed about IS per
cent on such profits
Declaring that there We're two
chief objections to the present high
estate tax rates, running up to 25
per cent on the total value of estates.
Mr.. Mellon says much of what he
has said, respecting the high sur
taxes applies equally to the estate
taxes. Another objection he sets forth,
is that in many instances, n forced
liquidation of estates to obtain the
necessary money to pay the taxes.
result in loss to the estates as well
as ito everyone else who is inter
ested in these properties. especially II
at the same time they desire TO or
must sell"
SimplificatiOn Means Reduction
Referring to the oft repeated state
ment that the tax laws need simpll-
%fication, Mr.. Mellon declares that
the greatest simplification that car
be made is in the reduction of the
rates"
$ long as the rates were low"
he asserts, There was not much diff.
ficulty in the administrator of the
law; even though the system was en-.
tirely new and the organization adj
ministering II, unfamiliar with the
operation Of such a law. The COM
plexity of the law so far as II con.
Germs the income tax itself, has arts
en- largely out Of the high rates
which make every point that arises
involve substantial amounts Of mon
ey, and which means that each pos
sible question is contested by the
tax payers and by The government
and resulting delay in the collection
of the revenue, irritation and annoy.
ance and expense on the part of the
taxpayer and costly litigation. With
moderate rates, very much Of this
difficulty wouI1 H~{snnnoar