Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1924-06-03
NOT TAX REFORM
Continued from Page One)

rugs. trunks and theatre admissions
or fifty cents or less
The revision OF the income tax
rates effected under the new law
brings cut in all such levies. This
amounts to fifty per cent reduction
on incomes OF $4,000 and under. on
amounts above that the normal rate
Is cut from eight to six per cent
while the surtax rates are revised on
4 similar basis.
New Surtax Schedule
The new surtax schedule starts
with one per cent on $4,000 and
graduates up to forty per cent on
$ooo.ooo and over. y new feature
written into the legislation at the
recommendation of Secretary Mellon
who initiated the move for tax revis-
ion last September provides for an
additional reduction of % per cent
on earned incomes up to $4,000 with
all incomes of $1,000 and under clas-
sed s earned.
Approval was given by the presi-
dent to the measure exactly one week
to the hour from the time he receiv-
ed 1t after almost unanimous final
action by both house and senate.
The president acted after study Of a
lengthy report made on the bill by
the treasury department and after
several conferences with Secretary
Mellon. to whose original plan for tax
endorsement
No Ceremony in Signing
The signing of the bill was with
out ceremony. c. Bascom Slemp. the
Presidents secretary, was the only
witness, and Mr.. Coolidge wrote his
name without comment. The state
ment previously prepared was given
out later by Secretary Slemp.
The president in his statement
criticized various features of the
legislation. declaring that las q per-
manent expression of government
fiscal policy this bill contains provis-
ions which in my opinion are not only
unsatisfactory but are harmful to the
1uture of this country"
The passage of a new revenue bill
was required for two reasons. the
reduction OF taxation and the reform
Of taxation" he said. The bill as
passed provides a certain amount OF
tax reduction. It improves some
features of administration. But It
Is not only lacking in tax reform. IL
adds some undesirable features to
the present law"
The presidents complaint about
the failure to reduce surtaXes ma
terially and to enact legislation to
forbid further assurances of tax ex-
empt securities, declaring that Gin
this way alone can high living costs.
the indirect tax paid by all the peo-
pie. be reduced and the productivity
of graduated income tax main
tanned"
Criticixes Estate Tax Increase
Criticizing the increase in the es-
tate tax to a maximum Of 40 percent
the president said this would force
the states to higher taxes from other
sources and virtually announced he
would cali a conference prior to con-
vening of congress, next December.
to consider the division of taxes be-
tween the states and the federal gov
eminent
The provision Of the new law. re-
outring the posting Of all income tax
payments and other publicity feat
ures. was declared to be unjustifi-
able.
Mr.. Coolidge, also found fault with
the provisions of the bill for board
or tax appeals, declaring the reduc-
ton in salary and limitations OF
terms of Office would make 1t difficult
10 obtain competent men.
{ FtdUS TOT a
Immediately upon notification that
the bill had been made law, Secre-
tary Mellon began preparations in
the treasury for its administration.
His first move was an announcement
that he would ask congress to waive
by resolution statutes making pay
ment Of salary to, persons nominated
Tor office while congress is in session
contingent upon senate confirmation
or the nominations. This action will
be urged by Mr.. Mellon to take care
OF appointments to the board of APP
peals. some of which will be made
immediately but probably too late
Tor senate confirmation.
Secretary Mellon also sent to Dr.
rector Lord of the budget a formal
estimate of an application of approx
imately $20,000,000 to be used in re-
funding excess taxes paid by those
who RENTED on March is the full
amount of their taxes for the cur