The Glenwood post., 1924-01-17
uae'e Tets BED Tine Stories
Current Events for the Chudrsa
and orown-ups, TOO
SECRETARY MEILON'S
TAX PLAN

1t had been one of those beautiful /
mid-winter days. There was lots OF
snow upon the ground and the sun had
come forth with vengeance and Jack |
and Ruth had been enjoying their Sat-
urday holiday playing with the chill
dren' of the neighborhood. After a
hearty supper and dry clothes they
were willing to prepare for bed be-
cause Uncle Ted promised them an In
teresting story, something they could
carry to school in the form of timely |
information.
"I guess I could tell you about
many things more interesting at this
time of the year." began Uncle Ted,
"but I think you should know about
the plan for the reduction of taxes as
worked out by Andrew W. Mellon, Sec
retary of the treasury. There couldn It
possibly be more vital question to
the mass of the public than tax re-
duction, and it is something that can
not be worked out or understood with
out careful study No single plan,
suppose, can be letter perfect. But we
must give Secretary Mellon great
credit for putting down in black and
white what he as 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 willing at
any time to defend this plan with sup
porting arguments from the treasury
department.
ga great deal has been said for and
against Mr.. Melons plan to reduce
taxes because he feels it can be done
with the large surplus now in our treas
ury. But no matter what others may
say for or against the plan, I think
the fair thing to do is for us all to
know what he believes his plan to be
and what it will do"
''I 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. "The tax rate on incomes such
as salaries and fees, that is, the money
earned by people who work for salaries
or by professional men such as doctors,
lawyers, etc, is reduced 25 per cent
where the income is below $4,000 a
year. Mr.. Mellon also points out that
these is an additional credit of % per
cent of the tax on earned incomes of
$4,000 or less the whole really result
ing in cut of "A per cent in the tax
on earned income up to this amount.
''The normal tax on the first 81 900
would be at the rate of per cent and
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
tax rates would be as follows, accord
ing to Mr.. Mellon s. letter:
The surtax rates begin at / per
cent on net income from $4,000 to
L
each $1,000 of net income up to
$36,000 and then l per cent additional
for the next $4,000 of net income up
to .$40,0 900; then l per cent additional
for each $4,000 of net income up to
n total of 25 per cent at 100000 and
over. T'
''From this we can see what think
to be fair gradual increase in the
taxing of incomes as the income in
creases. It makes the big fellow carry
fair burden of the responsibility in
proportion to what the fellow must
carry who doesn't earn so much.
"One of the best things about the
plan is the creation of n board of tax
appeals. This board would act in
about the same way that the Interstate
Commerce commission now acts regard
ing railroad problems. This board
would hear all appeals from the assess
ment of additional income and estate
taxes, sitting locally in the various
judicial circuits throughout the coun-
try. Both the cases of the individual
and the government would be presented
to this board
'The plan further provides that if
AW VIVA