Milford chronicle., 1924-01-11
SECRETARY MELLON's TAX PLAN


1t had been one of those beautiful
mid-winter days. There was lots d
snow upon the ground but the sun haC
come forth with a vengeance anG
Jack and Ruth had been enjoying Their
Saturday holiday playing with the
children of the neighborhood. After a
hearty supper and dry clothes they
were willing iC prepare TO- bed be-
cause UncIe Ted promised them an in
teresting story. something they could
carry to school IN the form Of timely
information.
81 guess 1 could tell you about
many things more interesting at this
time of the year." began Uncle Ted,
but think you should know about
the plan for the reduction of taxes as
worked out by Andrew w. Mellon,
Secretary of the Treasury. There
couldn't possibly be a more vital ques-
ton to the mass of the public than
tax reduction, and it is something that
can not be worked out or understood
without careful study. No single plan,
I suppose, can be letter perfect. But
we must give Secretary Mellon great
credit for putting down in black and
white what he as a man who under
stands money matters perfectly, feels
to be safe and sane. He has told
Chairman Green of the House Ways
and Means Committee that he is will
ing at any time to defend this plan
with supporting arguments from the
Treasury Department.
"a great deal has been said Cor and
against Mr.. MELONS plan to reduce
taxes because he feels it can be done
with the large surplus now in our
Treasury. But no matter what others
may say for or against the plan,
think the fair thing to do is for us
all to know what he believes his plan
to be and what it will do"
81 heard Freddie's father ask some
body if it would cut down his income
tax" said Jack.
Here is what the plan does for the
income tax, Jack" answered Uncle
Ted. 1.-THE tax rate on incomes such as
salaries and fees, that is, the money
earned by people who work for salar- |
les or by professional men such as
doctors, lawyers, etc., is reduced Is
per cent where the income is below ,
$4,000 a year. Mr.. Mellon also points .
out that there is an additional credit
Of rs per cent of the tax on earned in
comes of $4,000 or less, the whole real !
ly resulting in a cut of "A per cent in .
the tax on earned income up to this
1.-THE normal tax on the first $4,000
would be at the rate of 8 per cent arc
upon the remainder of the net income,
that is the income with allowable ex-
penses deducted, at the rate of per
cent. On the larger incomes the sur
AK rates would be as follows, accord
ing to Mr.. Melons letter:
1.-THE surtax rates begin at 1 per
cent on net income from $4,000 to
$4,000; an additional per cent for
each $4,000 of net income up to $780,
300; and then per cent additional for
he next $4,000 of net income up to
100000; then per cent additional for
each $4,000 of net income up to a to-
al of rs per cent at 100000 and over.
From this we can see, what think
% be a fair gradual increase in the
aXing of incomes as the income in
'reases. It makes the big fellow carry
! fair burden Of the responsibility in
to what the fellow must
AIRY who doesn't earn so much. 4
zone of the best things about the
Ian is the creation of board of tax
ppeals. This board would act in about
he same way that the Interstate Com
lerce Commission now acts regarding
abroad problems. This board would
ear all appeals from the assessment (
f additional income and estate taxes, !
itting locally in the various judicial }
ircuits throughout the country. Both 4
he cases of the individual and the
overnment would be presented to I
his board
"The plan further provides that if
le decision is made in favor of the
OVernment the tax can be assessed
Y the commissioner of internal rev. n
Tue and if the taxpayers is not salts i
ed with the result he can bring his a
Use to court and sue for the recovery a
the amount Of the tax. If, however,
lie board decides in favor Of the tax
Eyer, the commissioner of internal 81
venue can not assess the tax. He :,
zen can go to court and sue to col p
ct that tax. 20 20
There are two things you Riddles -
e interested in that come in this
wv plan. Radio and the theatres. If l;
r. MELONS plan is carried through -
e taxes on all kilograms, telephones, Z,
ased wires and radio is repealed. u T.
Id the last item of the outline as W
ven to the committee by Mr.. Mellon
DIVIDES for the repeating of the tax a.
admissions. This means the movies, nc
ok. beat you to your question. IN
THAT was sort of q dry story, / IA
ow, but want you to understand
nat Mr.. Mellon is trying to do for
2 benefit of the taxpayers of the Cc
untry. Now run along to bed. OF OF.
Good night" all