Evening star., 1923-11-28
TaX.Relief of the Rich.

The opponents of Secretary Mellon 8
tax-reduction plan, in those rare in
stances where the plan has been at
tackled upon its merits alone, base
that attack upon the argument that it
proposes to relieve the rich of their
just share of the cost of government.
If il does, of course, it has not, and
should not have, the smallest chance
to be enacted into law. If it does not,
then some other fault must be pointed
out, or it should and will, as far as its
own merits are concerned, be hailed as
q good idea by everybody
Some seven and a half million in
comes of individuals or corporations
will be affected by the proposed tax
reduction. OF these more than seven
million are incomes ranging from one
to twenty-five thousand annually, with
Of course, the smaller incomes in the
great majority. The single man or
woman with an income of $4,000 who
today pays $40 in federal income tax
would, under the Mellon plan, pay
$3.50. The man with an income of
So, 700 would pay $50, instead of sl60.
Incomes of $4,000 would pay 1925, in
stead of $420. And so on through the
list. Heads of families with two chill
dren would benefit proportionatcly a
% per cent reduction is given earned
income as contrasted with income en-
joyed through investment in stocks,
bonds, etc.
This is a brief indication of what
the Mellon plan proposes to do direct
~ for the man or woman Of moderate
income-the millions ardently desirous
of a Tightening of the tax burden
which they bear. What does it pro-
pose to do to the big incomes?
1t proposes to reduce the rates, but
to increase the revenue paid in to the
Treasury, as Secretary Mellon, wise in
the relationship of politics to national
economies. has taken pains to point
out. The current scale of taxation.
which left a convenient loophole
through which the rich might evade
paying big taxes through the simple
expedient of investing in tax-exempt
bonds rather than industrial enter
prise, has failed as a revenue-pro-
ducer, as children are today aware.
Secretary Mellon, to meet this truth,
recommends a reduction upon the tax
on big incomes to a point where tax
exempt securities may not seem so
lor md tria
enterprise for capital investment. The
plan contemplates getting capital back
into industrial use and taxing it all
it will stand before running to tax
exempt cover.
That is a fair statement, and one
not difficult of comprehension. And
the smalllncome man, the man with
a good job or a poor job or no job at
all, once he appreciates where he
benefits directly and indirectly by the
reduction Of taxes on big incomes is
not likely to be stampeded by any
f1apdoodle proclaiming that this is a
proposition to shift the load from the
rich to the poor.
Inc Ol d JOD vi
improving a poor one or finding a job
at all is all wrapped up in the indus
trial prosperity of the nation, and the
nation knows it,. The Industrial pros
perity of th nation is in a great meas
ure dependent upon the ability of in
dustry to attract capital wherewith it
may carry on and expand, and the
nation knows it. The Mellon plan is
purposed to enable industry to thrive
so that men and women in America
may get and hold good jobs. and so
that when once they have obtained
those jobs they may pay less to the
federal Treasury of the money they
earn.
That is the truth. The ultimate fate
of the Mellon plan will depend upon
bringing that truth home to the peo.
pie. and then permitting them to de.
eide whether or not they want the
benefit entailed more than anything
that may stand in the way of their
obtaining it.