Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1924-01-02
Consummate. Common Sense
IN Y Trih,lnpl

On. y. Tribunc)
Mr.. Melons tax reduction plan,
now published in bill form. has made
vivid impression on the country
Iecause it is an attempt to do a pub
lie service upon "a big scale. 1t is
the work Of u broad minded states
man. IL offers tax relief in n way to
benefit the Treasury as well as the
taxpayer. to illustrate sound finance,
to help business and to tighten the
nations leftover war burdens.
The Kitchin war revenue act was
vitiated by false assumptions. In
| tended to throw the weight of war
taxes on the prosperous. 1t produced
exactly the opposite result. Tnc en-
cess profits taxes imposed on ,ntgi-
ness and industry were not paid by
the men and corporations renorting
those profits. but were passed along
TO the helpless consumer. The In
/, come super taxes did not y,cat,y
bother the possessorS of large IN
comes for Congress- had left the
door open for the transfer of CAPT
tai which Mr.. KitChin vainly in
aeined he was reaching, into exempt
state, county and municipal sccurl-
ties.
The brunt of the war taxes has
lai'cn on workers with incomes be-
low $4,000. who have had to pay
much more than their Just shaI
and on the. masses who made no tax
returns. Mr.. Mellon wants to change
all this. He aims at an economic re.
adjustment which will wipe out the
present excess burden on the man
or woman with moderate income
and will greatly enlarge the volume
OF capital Yielding income which NAV
be taxed under the super-rates. II
II better for everybody to have the
government collecting maximum
rate or 20 per cent on the earnings
OF SZ0,O00, 100000 used in productive
enterprise than collecting a maxi
mum rate of - per cent oi. $4,000
100000 so used and nothn.g Mt all
on S1O.000.000 900 invested in ey-
empt bonds.
MT. Mellon wants to iodlIce tho
normal income tax rates fl ON 4 and
per cent, resi- cctively. to 3 and s
Ter cent. He suggests starring sur
TAX collection at $4,000 net income.
instead OF at $4,000. He would grant
special 70 Der . cnt discount on the
tax on earned income. lie w,nIJ
make the surtaXes much more mo-
ductivc than they now are. lie
would, moreover, give the taxpayer n
iairer chance by institutins regional
noards or revision. indepei dent of tho
treasury. thus affording impartial
semi judicial administration Of tho
revenue act. At present such ,e-
view cannot be obtained except st
the expense Of a law suit.
Here Is a rounded, scientific enui-
table plan of tax revision-or i'm
mense pubic advantage, indirectly
as well as directly. since sw ellen ,ax-
alton is one of the main obstacles 10
q reduction Of living costs. Most of
the critics of Mr.. Melons plan ale
against II because it will halt gov
eminent spcnding-especially be-
cause 1t viii interfere with tho
granting of 4 bonus. The rest of
them, like sir. Garner. claim that
they can do more for the taxpayer
IMAM Mr.. MeIln1 purposes doing
ret they have produced no plan
"hlch does not bark pack to the re-
tentton of higa surfaces and Tho 10
imposition Of excess profits taxes
hoth OF which are economically futile
ana only injIire the consumer and
the small taxpayer.
Inc Mellon plan is ,nvuIperaI,Ie
because IL Is m expression of cen
summate common sense.