Belington progressive. [volume] (Belington, W. Va.) 1912-1927, 1921-05-05
MELLON HAS -FOUR
WAYS TO CUT TAX
Secretary Of Treasury Asks
Congress For Early Action
READJUs1s INCOME RATE
Wants Increase. For Corporations to
Yield $500, o0o, 900 and Would Re-
peal Levy on Excess Profits.

Yield $500, 100000 and Would Re-
peal Levy on Excess Profits.
Washington. = Four specific pro-
posals for revision of federal taxes
are offered congress by Secretary Mel
Ion, with a recommendation for early
action SO the new taxes can be ap-
piled for this calendar year. They
are:
Repeal of the excess profits tax
and the existing $500 income exemp-
tion of corporations, the loss of reye-
nue. to be made good by a modified
tax on corporate profits on fiat adj
ditional income tax on corporations, to
yield an aggregate of between $780,
100000 and $50O,000OOO.
2-Readjustment of income tax
rates so no income will pa more than
40 per cent this year and 33 per cent
thereafter with a view to producing
aggregate revenues substantially equi-
valent to the estimated receipts from
the income tax under the existing
!. law
: 3.-Repeal of the so-called luxury
taxes together with the nuisance"
taxes such as those on soda fountain
drinks, but retention of the transport
tation and miscellaneous specific sales
taxes
4.-Imposltfon of sufficient new and
additional taxes of wide appl. cation,"
such as Increased stamp taxes or =.
cense taxes, on the use of automobiles,
to bring the total revenues from in
ternal taxes, after making the changes
above Suggested, to approximately $4,-
000,00O,000 in the fiscal years 1929
and 1928. The treasury secretary's
suggestions are contained. in a letter
to Chairman Fordney, of the house
way1 and means committee, made pub
lie ht the treasury department. A
copy Of it also was transmitted to
Chairman Penrose Of the senate f.
na1fce com littee.
Mellon suggests adoption of admins
trAtive amendments to the revenue
LAWS simplifying collections and final
settlements, and permitting under
safeguards. the carrying over Of net
losses by taxpayers for one year as
a deduction from incomes Of succeed
ina years.
~The treasury Is not prepared" Mel
loA says, ITO recommend at this time
any general sales tax an6 particularly
II the genera sales tax is to super
seds the highly productive specific
sales tax now in effect on many rela-
lively non-essential articles"
Mellon say also he wishes it were
possible to recommend the repeal of
the '>anspor alton tax, but adds 1t
produces annually approximately
$3.50, 100000 and its repeal cannot be
affecte. with safety unless congress
has an acceptable substitute 20 offer"
The treasury secretary also suggests
it may t. advisable for congress to
take acti,tl by statute or by constitu-
tional amendment restricting further
issues of tex exempt securities, saying
it is estimated there are now outStand-
ing perhaps 100000 of tax ex-
empt securities, the existence of which
CONSTITUTES an economic evil of the
first magnitude"
He points OUT it is now the policy
of the federal government not to issue
its own obligatiCns free from profits
and surtaxes, but shat states and mu-
inequalities are Issuing full tax ex-
empt securities in great volume.
The continued issue of tax exempt
securities, he adds encourages the
growth of public Indebtedness and
tends to divert Capital from produc-
tive enterprise"
Emphasizing that expenditures for
this fiscal year have been at the rate
of $4,000 10000, Mellon warns con-
gress that the nation cannot continue
to spend at this shocking rate" sub
I stantial cuts in current expenditures,
he says, offers the only hope of eff
fectiye relief from the tax burden.