Belington progressive. [volume] (Belington, W. Va.) 1912-1927, 1923-11-22
ANOTHER REPUBLICAN
TAX REDUCTION

Washington, Nov 2O-"It is APP
parent from a study Of Secretary
Melons suggestions that he has yone
very deeply into the subject Of tax
reduction" says the Republican Pub
Lefty Association, through its Presi-
dent Hon Jonathan Bourne, Jr. "He
has kept constantly Bourne, Jr. "He
for reducing the huge amount Of
money now tied up in tax-exempt
securities, and bringing out new cap
ital into production fields where its
profits may be taxed. Of course
/ Introduction of the surtax rates will
be the greatest influnce in that di-
rection. Another is the recommend
alton that interest paid and losses
sustained outside the line of business
may be deducted only when their
sum is in excess of the income de-
rived from tax-exempt securities.
That language puts immediate pre-
sure on the holder of state and mum
icipal bonds to put his money into
some other investment so that he
may enjoy the full benefit Of the
| law
SIN the Republican revenue law
of 1921 about $500, 100000 was lop-
ped off the public tax burden and
now Secretary of Treasury Mellon
has recommended further cut of
$323,000,00. The drastic econom-
les in the cost of governemnt enfor-
ced by the Republican Administered
ion have produced surplus under
the present tax law, which the Pre-
sident and his advisers will urge
Congress to hand back to the people
in the shape of reduced tax rates.
Peofle of small incomes will prob
ably be the chief beneficiaries from
the change, although the cuts in sur
tax schedules will be decided en-
enlargement to capitalists and en-
able them to expand their industrial
enterprises with an assurance of a
reasonable net profit.
"Mr. MELONS first recommend
alton is to reduce by So per cent the
tax on earned incomes, mostly wag-
es salaries, and professional services,
which would mean loss in revenue
of $97 100000 year. The greater
part of that sum would be saved to
people of very moderate means.
Another great saving to the same
class of taxpayers is the suggestion
for lowering the present normal tax
rates of A and per cent to 3 and 6
per cent, respectively. That change
| will furnish an estimated relief of
! SOL 100000 annually A further re-
duction of $70,O00,000 would come
from the repeal of the tax an admis-
sions, and another cut of 30,000, 900
from the repeal of the tax on tele-
/ graph rates would begin at 10000 in
stead of $4,000 as at present, and
would be scaled progressively up
ward to 25 per cent on incomes of
temporary loss of Treasury reven-
ue of first but experience has taught
that in the long run it will bring in
creased receipts.
"Of course the greater part of
! those reduction are warrented by
the surplus of S31O,000,00O recorded
in the last fiscal year, but other
changes in the law recommended by
Mr.. Mellon are expected to gring in
additional receipts to bffset some
of the reductions. Limiting deduct
ions of lapital losses to IL 1-2 per
cent will increase the revenue about
K $25;000,000 and an increase of about
/ provision limiting thedeductions for
interest paid and fir losses not of
business character.
"Mr. Mellon emphasizes the fact
that the reductions he has recon-
mended can be relied only if the
soldier menus idea is abanoned
The Treasury has proceeded says
he, on the theory that the country
! would prefer substantial reductt-
ion of taxation to the increased taxes
that would necessarily follow from
soldiers bonus, and I have faith
to believe it is justified in that I'M
derstanding. The Secretary declar-
es there is nothing better calculated
to promote the well-being and hap
i piness or the whole country than the
lifting or a part of the heavy burd-
en- of taxation.
every citizen will echo that state
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