, 1922-12-06

a. D maximum snGHiAe sAEAA lat'
from tl- present SO Per cent TO not
more tliu % per cent and b clos
ire uU 90 far IS possible OF existing
revenues OF escape frum federal taxes
r-r r-.ai lr Secretary Mellon in ha
annual report. nausrniifcd to-day 10
---- NO general revision Of the
revenue '7w p proposed nor nre "a
GtIlusL fH.= auEEtstel ar Iclen
c-urrr4 thr h1pe az meetHg ANY
Indicated government dcncit thrQugh
collection or hack axe and income
fr.m other sources.
Tile treasury secretary Informs
r-rerrrz fa.f 90 attempt alone n stop
tho rsrz through which there 90 an
nv7fl11rc o. tax payments 60 tho gov
rrumeul VIII not be onouEn because
the existing rates OF surtaX put such
hoazy pressure on the larger taNpay.
rr- "a reduce their taxable incomes
shat new ones would surely be found
lie ADDS that ths high taxes sound
productive but that the fact remains
tlat thsr 49, becoming increasingly
ine-rr.vr and are yleidins less and
icsa r-rargn each year
Then lllatIr be Rolls rrurrcgr the
t-a frs come % arc rrr facts
ll..NNA. anu hA NNN N'"N AtH- =" HH
conditions which now prevli q
which he inserts. nre not wholesome
from fna uo nj or view uf hIs 'Hss ar
ludla.riai development. and. aJ the
Flfnr time. .rr impairl1E the revenues
of tse government.
Tile more important OF the methods
used by the taxpayers 10 reduce ths
amount Of income subject to taxation
- it'll Ha HH- NHnHHan az FaHfnHrHa
Deduction cf losses IN sales Of
csp tai assets. with the failure to
realize on capitol gains.
Exchanges ot rrlpcrty INT cur
ties So as 90 AVOID ttaabie Eatns
Investment OF tax exempt securities
and
division OF property. creation Of
trusts and the like.
"Not all OF these things can be con
rrolled by law or by regulation he
continued. "nud most OF them lead TO
unnatural and frequently harmful
economic results. To reach the evil
the thing most necessary is the re
ductlon OF the surtax rates them
selves. in order 10 reduce the pressure
fo- avoidance and maitain the reye
nues derived from the surtax.
AAAkAA fNAANh F1AAA AfA#ak1tAAANaAN 80
the s. cid OF the higher surtaxes
will tend. in the ordinary course Of
u drop toward the van sning
point. The wise course is TO reform
The surtaoes now While the system
sim functions and at the same time
10 close. so far rs possible, h gnps
which now exist. on his basis the
can be made without loss OF
.~I-ua a-A O., eha Ions rim With 2
material benefit to b revenues.
TO support his argument that the
surtaxes gradually r defeat
ing their own purpose he calls at
tention Tint While net Incomes OF all
elasses during the period from 1916
20 1920 increased from S6.2es.577, $40
in 1916 to s23,735 .629.1s3 in 1920. and
the number Of returns from 437 .036 IN
1916 to 7.259.944 in 1920, the number
OF retu-nB OF incomes over teSe.55o
decreased during the same cried from
] .sg6 in 1916 to 500 IN 1890. and the
amount OF Incomes over $500 900 from
1892 .972 $50 ia 1915 TO S24e.354,hs5 in
1890.
In earnestly urging prompt adop-
ton OF the proposed constitutional
amendment against the further Issu'
ahce OF TAX eAehilF secul't 1"
treasury secretary says these seour'
ties. now reaching the market At the
rate OF $1,000. ooo'ooo hhually
form the outstanding avenue OF
escape o the surfaces
With these securities aVailahie TOT
Investment tuly exempt as they are
from federal income surtaNes' MI
Neil"' cent n'ies investors VINO
49, -.u-.N...
would normally put their surplus
tunds in-o productive enterprise are