The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1922-12-06
MELLON SUGGESTS
INCOME TAX CUT
Secretary of Treasury Says No
Additional Federal Revenue
Necessary.
REPORT SHOWS DEFICIT
Next Fiscal Year viii Have Sur
plus of S1so,e6o,125,
He Estimates.

BIZ United Press
WASHINGTON, Dec. 6.-Secretary
Of the Treasury Mellon today in
formed Congress that no additional
Federal taxes will be necessary during
the coming year, If a policy Of rigid
economy is enforced.
In his annual report on the f1nan-
cial operations OF the Government
during the last fiscal year. the secre-
tary strongly urged one reduction in
taxes-a so per cent cut in the present
surtax levies on big incomes The
present maximum surtax rate is so
per cent, which applies to incomes OF
5000 600 a year and over. Mellon sug-
gested that the maximum be fixed at
Is per cent and the other rates on in
comes below $4,000 reduced accord
ingIy. Taking direct issue with the
farm bloc which was largely respon-
sible for the present rates, Mellon as
serted that the high levies are re-
stricting business expansion and that
Just as much revenue could be OBJ
tanned by cutting them IN half
Points Outstanding
Other outstanding points Of the
Secretary's report We're:
1. The country already is suffering
from a scarcity of labor, due to immi-
grafton restriction and the general re
sumption of industrial activity with
the consequence OF higher wages than
last year and greater manufacturing
costs
?. The railroads ara suffering from
undermaintenance and inadequate
equipment and are unable TO meet
the demands Of business.
3. Farm products are selling too
low at the farm and too high at the
distributing centers-
4. The country has Increased its
gold supply more than $1,000, 900. 600
during the last two years. and this
has tended to increase speculation and
unnatural expansion of business.
5. The unsettled condition in
Europe is endangering the foreign
markets for many Of our products and
business in this country cannot pro-
gress without foreign markets.
6. The Treasury believes by keeping
it's house in order 1t can best aid
Europe ar the present time.
Z. Further issuance Of tax-exempt
securities. which now total approx
mateIy $1,000, 900, 900 and are in
creasing at the rate of $1,000, 900, 600
a year should be prohibited by con-
stftutional amendment
8. Every effort is being made to
speed the collection Of back taxes.
Custom Receipts Highest
9. Custom receipts during the year
ending June 80. 1922, although the
low Democratic tariff was in effect.
totaIIed 1857. 544. 712, the greatest in
the history OF the country.
10. The value of Liberty bonds has
increased $500, 100000 since the low
marks Of 1920.
For the present fiscal year, which
ends next July 1. Mellon said present
figures indicate a deficit Of S274 0OO.-
600, as compared with estimates Of
ss97 600, 600 at the beginning Of the
year.
For the next fiscal year, the period
from July. 1923, to July, 1924, a sur
plus Of S1S0.969 ,125 was estimated,
but It was emphasized strict economy
is necessary TO obtain this surplus.
Appropriations asked for by the bud
get bureau for the next year total
SS.O7S. 94O, 331.69, a reduction Of 1885,,
OOO. 900 as compared with appropria-
lions for the current year.