The Daily Ardmoreite. [volume] (Ardmore, Okla.) 1893-current, 1921-12-07
REVISION Of TAX
AND ADJUSTMENT
OF RATE limited
Secretary Mellon Makes An
Annual Report to Congress
Today; Utmost Economy
is Urged in Speech.


WASHINGTON, Dec. Further re
vision OF the tax laws, with a reduc.
tion OF the maximum increase In sur.
tax rates TO 20 or 25 per cent and ad.
iustment OF the rates on business prof
its and estates, is suggested by Secre-
tary Mellon in his first annual report
transmitted today to Congress.
The treasury secretary also nm
nounces that the treasury's policy
with respect to deferment OF the sol
der's bonus Is unchanged, and urges
prompt funding OF the ten billions OF
dollars OF foreign loans as "one of
the outstanding needs OF the present
economic situation"
Mr.. Mellon also informs congress
that the maturity within the next
six months of $3.50 600, 900 OF the
short dated debt makes II imperative
that the government pursue policy
of the utmost economy and avoid new
undert akings that would throw add.
tional burdens on the treasury and
cmbarrass the funding operations
with respect 20 the floating debt.
Revenue revision Ia the subject upon
which the secretary lays the most
stress He says the changes In the
tax law voted BY congress last month
gave substantial relief 10 business and
industry and restore In some meas
urc the freedom Of bushes transae
tlons. but our system Of taxation still
requires careful and thoughtful con,
sderatiOn He then proceeds 10 say
that IL the loss Of revenue resulting
from the reductions in surtax and
ether rates suggested cannot be made
up By rigid economy In expend
lures" 1t can be met "elther by plac
ing o tax on certain specific articles
or by q low rate general tax on y
broad class OF Articles or transac
tlons"
Change ~ Taysiion
1T ls of vital Importance" Mr.. Mel
lon declares chat adjustment he made
In our scheme Of taxation whereby
tho burden will not fall unduly elthel
directly or indirectly. upon any par
ticular class. aud at the same tim,
will not seriously Interfere with pro
ductive industry and the general pros
perlty Of the country.
1T would not seem either wise Of
necessary to change from our pres
ont system of taxation IN new ant
untrlcd plans By retaining tho income
tax with reasonable surtax rates
which In peace times ultimately
should not rise above ten per cent
tax payers would still be required 4
contribute in proportion 10 their abil
lty 70 pay. while by placing a Ger
tain amount NJ tax on specific articles
or clnsses of articles or transactions
at 90 low rate that they could readll,
b. horne without injury. the lncoml
tax could be materially simplifled. IN,
tax laws could bo more readily admin
lstered and at tho same time IN,
needed revenue would be raised with
out me OWL effects now resulting
from the present excessive rates of
taxation"
Revenue Not 80 Great
Mr. Mellon informs congress tha
the amount Of revenue involved II
tho suggested reduction Of rates. /,
not nearly as great as Is generally
supposed.
80 reduce the surtsS rates to {
maximum ~ 25 per cent and grad
uatlng the reductions through al
the brackets" ne says would meaI
an apparent loss of about $3.50 900
900 in revenue A 20 per cent max
CONTINUED on page two)