Evening star., 1921-08-02
MELONS Tax Plan.

secretary MellOH pIOpoSdlS " ehe
House ways and means committee, for
the framing of the new taxation meas.
ure, will meet with both approval and
disapproval. He suggests, as new
means of raising revenue, a fiat $40
license tax on all automobiles. a two
cent stamp tax on all bank checks,
and an increase Of 1 cent in the post
age on first-class mail matter. He
also urges an increase of the tax on
tobacco, to yield $100, 200, 900 annually
in addition to the present income
from that source, and an increase OF
from 10 to Is per cent in the fiat cor.
poration tax. as in part substitute
for the excess profits tax, repeal OF
which he proposes. He would. further.
more repeal the so-called nuisance
taxes" such as those on soda water
and ice cream; would reduce the trans.
portation taxes by half for the pres.
ent and full repeal later, and would
reduce the surtax on incomes.
Coupled with these proposals Secre-
tary Mellon submits an estimate of
$4,000, 900. 900 in federal expense dur.
ing the present fiscal year. This fig
ure, 1t is indicated, caused surprise, as
1t was hoped that the government g
necessities in practice would run to a
considerably lower figure. The Secre.
tary believes that this outgo can be
curtailed by $so0,o0o.o00 during the
next fiscal year. This means that
despite all budgetary economies they
cannot be put into effect appreciably
during the next eleven months. The
appropriations are all made for the
current year and the economies that
can be accomplished will be slight in
relation to the total.
Doubt is expressed by members of
the committee as to the wisdom of
increasing the range Of fat direct
taxation. Political apprehension is
doubtless the cause of this feeling.
The problem before the House com.
mittee and before Congress. however.
is not to be measured by the bearing
of the tax measure upon the fortunes
of the republican party. Money must
be raised for the governments main.
tenance. The burden Of taxation must
be distributed evenly and proportions
ately. Business must be released from
its present doubts in order to revive
and give employment.
Increase Of the postage rate is a
certain revenue maker. 1t would bear
upon. all classes of people and would
be felt but lightly. The postage item
is the smallest factor in the average
business. though in some establish
ments 1t is heavy. People of small
means write few letters. A 50 per cent
increase in the postage rates would
be as nearly a ratioed impost as could
be devised. 1t would be a sure revenue
producer and most easily collected.
The stamp tax Of any kind is in a
sense a nuisance. A tax on bank
checks is bothersome, and in some
business concerns Is heavy item.
But 1t yields revenue and revenue
must be had. And the question Is who
Will pay II!
There will be perhaps an argument
on the question Of Secretary MELONS
proposal Of a fiat rate Of SO on all
automobiles, regardless Of their cost.
Should not the tax be proportioned to
the market price Of the car? Should
the owner Of a $500 car pay as much
as the owner Of a $4,000 machine?
This question must be answered If the
motor license tax Is adopted.
Secretary Melons suggestions are
at least constructive and tend to de-
fine the situation. He states the needs
and proposes means Of meeting them.
The task and the responsibility belong
to Congress.