The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1921-12-07

IS URGED
TO FRAME
LEVY BILL
Rate Would Not Bear UnduIy
On Any Class, Treasury
Head Declares.
BY w. II. ATKINS.
International News Service.

The government must make q
further slash in existing income
and surtaxes, and adopt some
form of sales tax that will better
equalize the tax burden in order
to tighten the load Of the average
taxpayer and help business go
ahead, Secretary of the Treasury
Mellon today told Congress in his
annual report.
Can't Escape Heavy Cost.
Secretary Mellon said that while
General Dawes economy measures
and other steps of the Administration
had effectedSa cut of $1,000, 900 ,000
In Treasury expenditures during the
current fiscal year. that the Amcri-
can people cannot escape facing
heavy Government expenditures for
many years to come.
There is urgent need that the tax
laws be greatly simplified. and some
OF existing complexities removed, Mr..
Mellon said. in his annual report.
The income tax must be retained for
4 years to come as a part Of the Amer
can system, but the objections now
raised to the excessively high rates
must be met by Congress by legis-
| lative action scaling down the rates
to a reasonable level, especially In
the surtaxes. which now discourage
business.
Taxation Of people in proportion
to their ability to pay" is really the
keynote of Mr.. Mellon's proposals
to Congress. Mr.. Mellon, taking full
account Of the $500 900 900 reduction
In the tax burden In the fiscal year
1873. from the changes made In the
revenue act Of this year, asserts
Congress must WELD the axe again,
and said before the job is completed
other sources than those now tapped
as revenue producers must he found.
! The sales tax is favored by Secrc.
tary Mellon. What form 1t shall take
b left By him for Congress 10 de-
termine. He refrained from specific
recommendations on that point.
Practically Favors Sales Tax.
Secretary Mellon. discussing the
advantage OF the sales tax. as a
means Of making up any losses which
would come from cutting the sur
taxes, said:
"If this loss In revenue could not
be met with rigid economy in ex.
penditure. the revenue could be
raised by placing a tax on certain
specific articles. or by a low-rate gen
eral tax on a broad class of articles
I or transactions.
"Such taxes as those now imposed
on automobiles and tires have been
found simple and inexpensive of ad-
/ ministratio and the collection Is
always substantially current. They
have been steadily productive of rev
enue and have been without injurious
effects upon the country.
I'm view Of past experience, a gen.
eral tax either of this or like char.
acter upon a broad class of articles
or transactions could be readily ad.
nsinistered. The rate could be made
sufficiently low as not to bear unduly
upon any class and at the same time
produce a large amount Of additional
revenue.
Would Keep Income Tax.
II In the view of the Secretary that
by retaining the income tax, with
reasonable surtax rates, which in
peace times ultimately should not
rise above 10 per cent. the American
upkeep of the Government according
to their earnings. But he goes fur
thes and said:
by placing a certain amount of
tar on specific articles, or classes OF
articles or transactions, at 30 low a
rate that they could be readily borne
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