Evening star., 1924-01-24
which is engaged in framing a reve-

/, which IS engaged in framing a reye-
M. Mills argued vigorously for the
reduction in surtax rates to a maxi
, mum of rs per cent, as recomIne ended
, by Mr.. Mellon, and attacked the dem
ocratfc plan to cut surtaxes only to a
ther reducing normal income rates
as limiting the benefits Of tax re-
duction to 100000 individuals"
| The Mellon plan proposes relief for
the small income taxpayers, Mr.. Mills
explained, but also reduction of sur
taxes on higher incomes, not for the
benefit of the few individuals who pay
; them. but because from the standpoint
| are unproductive and uncollectible, and
from the standpoint of the welfare and
prosperity of all of our people, uneco-
! nomic and harmful.
Present surtax rates, with a maxi
| mum of so per cent. MIR. Mills de-
clared, have resulted in medium sized
and large fortunes being invested in
municipal and state securities, that
were formerly reserved for estates,
trusts and people or moderate circum-
stances. not only depriving the country
OF the liquid capital for new ventures,
! but raising the price of conservati tive
| Investments to point where the small
man is driven to the speculative ones.
| without adequate means available to
| him of Judging their true value"
| These huge sums diverted to un-
! productive PURPOSES, Mr.. Mills said
must result, first, in slowing up the
normal productive growth of the ma
+, tion, thus raising the cost and lower
! ing the standard of living by limit
| ing the production of consumable
goods, and, secondly, in raising the
cost Of the goods that are produced
by raising the interest rates, an i'm
portant element in the cost of pro-
4 Rnrtinn n nd Il vi but tf<S,,
| Cites Means Of Escape.
| The New York representative cited
as means by which high incomes es-
| cape taxation investment in tax
exempt securities, division of estates
incorporation, deduction of losses, a
failure to take profits, investments
/ abroad and permitting profits to ac-
cumulate there and failure to make
productive use of existing capital.
| shut one door, he said, land an
other will be found. The fundamen-
tai fact is that taxation at excess
sive rates Is unproductive.'
! Mr.. Mills declared the Treasury tax
bill would apportion 20 per cent Of
the reduction in income taxes to
brackets of $4,000 or less, with less
than per cent in those over $780,
1000.
"In other words.' he explained,
l"those taxpayers having S8 per cent
of the national income and paying
lonly 20 per cent of the income tax
would benefit to the extent Of 70
| per cent of the reduction, while those
Having per cent of the national in
come and paying 2s.11 per cent of
the tax would receive per cent
only"
The Garner plan was presented to the
Senate today by Senator Jones. demo-
crat, New Mexico. with tables to show
, it's effect upon various classes OF tax
| payers.
"Mr. Melons recent statement on
the Garner plan has shown some tenn
! per-" Senator Jones told the Senate,
but that should not prevent US from
giving II calm study"
He declared the Mellon plan was
prepared prior to the convening of
Congress with a view to forcing it's
acceptance ''in toto" and its provf-
sions were withheld until the mi
nority leader in the House and his
associates began to seek details by
| independent inquiry"
The great Secretary says the Gar
! ner plan is insincere," the New Mex
Iico senator said. apparently because
of the Importance given to small in
comes. Mr.. Mellon probably has SO
long dealt with large incomes that
| he cannot see the other