Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1922-02-02
Mellon Suggests
NelU Bonus Taxes
, Continued from Page One

continued from rage Ono
cost $40. .OO. 900 n year for the first
two years. and told .hc committee that
it could extend the list of taxable
sources to make M the deficiency. lie
made it clear that he was not "recom-
mcnding' any Of the taxes suggested.
The Treasury Secretary opposed n
cost aud difficulty of administration
II should say that We cannot in.
crease the taxes already in existence. +"
said Mr.. Mellon. las they already are
as burdensomc as should BE- borne. We
should go further and find some broad
class of n commodity on which ren =
s"nablc taxes would not be too great
burden.
II think that the Use Of the foreign
debt for this purpose would be i'm :
practicable. Tho foreign debt Is very
uncertain proposition and to undertake
to usc It for this purpose would lead
t. II great many difficulties. 1t Is
lroblcmatical whether funds can be
obtained in time to meet the bonus.
1T would be much better for us to
provide the funds and collect tho for
cign deb, as far as possible than to
pledge that source for something when
We don't know what the source will
yield.
"Anyhow. This would be n cumbcr.
some way Of raising money for tho
bonus and in some respects would cost
Us more than the other way. for II We
undertook to sell the foreign securities
they would not bring rs much in the
market as our own securities. In
ether woids, they could not be sold at
par.
Expects Half Will Take Cash
Quest ioncd by Representative Frcar,
Republican. Wisconsin, as to the basis
for the estimate of a cost of $500. 900.
600 for the bonus the first two years,
MIR. Mellon said this was on the as.
sumption that half Of the former service
men would take cash.
Its all speculative. said Mr.. Mel.
lon. mo on" can tell accurately how
much it will cost
Mr.. Frear asked the Secretary rs tt
his views on various special taxes. The
Secretary objected to any further
! changes in the tax on the transfer O'
stocks and bonds, declaring 1t would re.
tard business.
Mr.. Mellon thought that the norma
income rate could be increased tempo
rarily SO as to provide S10O.WO. 900
year. but he said there was the genera
objection that the rates would be cx
cessivc.. lie added that the country o
course would be obliged TO accept it |
Congress so decided; but that 1T woul'
be an OnerOus tax
Objection was made by the Secretar
to ) per cent tax on undistributed in
come of corporations. saying this woul
have the effect of rctarding the reviva
of business and consequently was unde
sirab!c.
Still replying to Mr.. Frcar, Mr.
Mellon said he thought increased take
on cigarettes were the most logical. IL
said that if Congress was going to i'm
pose tax on gasoline it should D.
careful not to include gasoline goini
commodities. His estimate was tina
1 .OOO. 600. 900 gallons of gasoline con
sumed yearly coulC. be taxed and SAT-
the Weld would be $40. 900 900 an
nually for each cent per gallon lev,
imposed.
Against Higher Theatre Tax
Representative Frear suggested NJ
increase II 10 uSr cont in the thcntr
admission tax. This brought Objects"
from several committee members
; Chairman Fordncy said it would clos
VI the theatres.
! Questioned about the renewal Of tn
excess profits tax. Mr.. Mellon said for
m'r estimates that this would yiel
$500, 900 900 this year at the old rar
were too high.
With the present "hish tension on II
prohibition question: it would not I
, practicable TO undertake the bonus pay
mrni with tax on light wines an
beer" Mr.. Mellon declared.