The Bozeman courier. (Bozeman, Mont.) 1919-1954, 1923-11-21
REPUBLICANS TRY
To REDUCE TAXES
SECRETARY MELLON SUGGESTS
LOWERING GENERAL TAXES
BY CUTTING BONUS

Washington, Nov. 19.-'It is ap-
parent from a study of Secretary
Melons suggestions that he has gone
very deeply into the subject of tax
reduction" says the Republican Pub
licity Association. "He has kept
constantly in mind the need for re-
ducing the huge amount of money
now tied up in tax-exempt securities.
and bringing out new capital into
productive fields where it's profits
may be taxed. Of course the reduc-
ton of the surtax rates will be the
greatest influence in that direction.
Another is the recommendation that
interest paid and losses sustained
outside the line of business may be
deducted only when their sum is in
excess Of the income derived from
t~ax-eXempt securities. That language
puts immediate pressure on the hold
er of state and municipal bonds to
put his money into some other in
vestment so that he may enjoy the
full benefit Of the law.
"In the Republican revenue law Of
1921 about $500, 900 900 was Topped
off the public tax burden, and now
Secretary of the Treasury Mellon
has recommended a further cut of
1928, 600, 900. The drastic economies
in the cost of government enforced
by the Republican Administration
have produced a surplus under the
present tax law, which the President
and his advisers will urge Congress
to hand back to the people in the
shape of reduced rates. People of
small incomes will probably be the
chief beneficiaries from the change,
although the cuts in surtax schedules
will be a decided encouragement to
capitalists and enable them to expend
their industrial enterprises with ar
assurance of a reasonable net pro.
fit.
"Mr. Melons first recommendation
is to reduce by Is per cent the tax
on earned incomes, which would NEAR
a loss in revenue Of $97, 100000 {
year. The greater part of that sun
would be saved to people of very
, moderate incomes. Another great
saving to the same class of taxpay
;. ers is the suggestion for lowering
the present normal tax rates of
and 8 per cent and 8 to 6 per cent
respectively. That change will furn
ish an estimated relief of $4,000, 00l
annually. A further reduction o
$40, 900 would come from the re
peal of the tax on admissions, an,
another cut of 100000, 900 from tn
Z repeal of the tax on kilograms an
t telephones. The surtax rates woul
n begin at $4,000, instead Of $4,000 a
8 at present, and would be scaled pro
G gressively upward to 25 per cent o.
incomes of 100000. This chang
may mean a temporary loss of Trea:
ury revenue at first, but experienc
r has taught that in the long run it wi
bring increased receipts.
"Of course the greater part of thos
reductions are Warranted by the SUI
plus of S31O,O00,O 0O recorded in tn
last fiscal year, but other change
g in the law recommended by Mr.. Me-
f Ion are expected to bring in addition
al receipts to offset some of the re
4 auctions. Limiting deductions of car
d ital losses to 12h per cent yill II
j., crease the revenue about $25, 600, 00I
= and an increase of about S35, 200. 90
u is anticipated from a provision limit
p ing the deductions for interest pal
Ie and for losses not of a business cha
ic acter.
"Mr. Mellon emphasizes the fa'
that the reductions he has recon
mended can be realized only if I'll
soldier bonus idea is abandone1
The Treasury has proceeded /
says, 'on the theory that the countr
would prefer a substantial reductio
of taxation to the increased take
t. that would follow necessarily from
70 soldiers bonus, and 1 have faith
believe it is justified in that unde,
standing The Secretary declare
s. there is nothing better calculated
re promote the well-being and happine'
of the whole country than the liftin
of a part of the heavy burden {
taxation.
Every citizen will echo that stat