The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1925-07-03
MONDELL WARS
FOR REFORM
IN TAXES
Crusader Has Administration
Approval in His Self
Appointed Task
By RICHARD HATTON.

Bankers Association at Hot
Springs, Va. and one which has
drawn favorable comment in bank.
ing circles because Of its logical
presentation of the question of
Federal tax reduction and reform
was the address delivered by Frank
w. Mondell, Of the War Finance
Corporation.
Mr.. Mondell has given the Inn
portant subject upon which he ad.
dressed the Washington financiers
intensive and comprehending study
and that he. was well qualified TO
present constructive conclusions il
indicated by the mastery addresses
he has made upon the same In.
portant topic at the annual con.
vention of the Louisiana Bankers
Association meeting at New Or
leans, the annual convention Of the
South Dakota Bankers Association
at Bookings, at recent luncheon
meeting OF the Hamilton Club III
Chicago.
Mr.. Mondell has buckled on the
armor OF q crusader for Federal
tax reform and he goes forth un
der the banner Of the approval of
the Administration to spread this
gospel. The favorable comment
accorded his speech at Hot Springs
indicates how well he is perform.
ing his appointed task OF pointing
the way to q lessening Of the tax
burden carried by the American
people.
Importance Of Question.
The Importance Of the tax ques-
ton and the interest taken in the
subject by the people of the
United States Is stressed by Mr..
Mondell in these words: "a lively
appreciation OF the transccndent
importance ct the maintenance of
proper principles and policies Of
taxation has been an outstanding
characteristic OF our people from
the beginning -
exercised by the people in enter.
ing upon q plan for taxing incomes
ana he traced the history of the
income tax from its first irnposi.
uon In 1913 to the present time. :.
speaking OF the efforts of Score.
taFy Mellon In urging the need Of
tax reform IN the early days Of the
said:
In the very first DAYS of the
Harding Administration the Presi.
dent and Secretary Mellon, In con-
ference with responsible leaders in
Congress, urged the need of a
tnorough-going tax reform, revision
end reduction and outlined a pro-
gram which proposed e. lifting Of
the tax burden all along the line,
the repeal Of the excess-profits tax
and reduction Of maximum sur
taxes from IS to 30 per cent"
Concisely outlining the Mellon
plan, Mr.. Gondel outlined the pres
ent tax situation, six years from
the closing Of the war emergency
which justified temporary high tax
rates as follows:
The Federal tax gatherer still
collects as high as IS cents on
dollar or income, and this while
there are ten billions of Federal
and municipal securities. the income
from which Is entirely untaxed.
When one OF our citizens dies leav-
ing an estate sufficiently large to
bring 1t within the highest Of the
tax brackets, his estate must pay to
the Federal Government taxes which
may reach a maximum of 40 per
cent Of its value"
Quotes Coolidge.
Referring to President Wilson's
warning to Congress regarding high
taxes. Mr.. Mondell then quoted
President Coolidge as saying:
THE time Is arriving when we
can have further tax reduction,
when. unless we wish to hamper
the people in their right to earn
living, we must have tax reform.
The verdict of the country has
Teen given on this question. The
verdict stands. We shall do well
to heed It. There certainly
can be no valid reasons advanced
in defense Of the high rates which
we have been discussing. If any
excuse can be offered for them it
can only be that of socialism or
communism. In their continued
operation in time Of peace the high
rates of income taxes have demon
strated their peculiarly socialistic
and communistic characteristics of
utter and absolute futility.
Even from q Bolshevistic view
point they could be justified only
upon the theory that they compel
the rich to pay an extraordinary
proportion of the expenses Of gov
eminent. But they do nothing of
the kind; they simply drive large
va eAO"AiS Jul Va INC ho~A
field, leaving the burden to be borIe
by those Of smaller incomes and
the vast multitude who pay no in
come taxes. but who, in the pur
chase OF service or commodities
pay many times the amount Of the
taxes collected on the incomes of
the large fortunes which remain In
the field Of productive enterprise
because the tax can successfully be
passed along to the ultimate con-
sumner"
Fortunes Not Menace.
Again quoting President Coolidge.
Mr.. Mondell says: 81 do not believe
that the Government should seek
social legislation In the guise of
taxation. II we are to adopt so.
cialism II should be presented to
the people as socialism, and not in
the guise of law to collect revenue.
Personally, I do not believe that
large fortunes, properly managed,
are necessarily q menace to our
institutions, and, therefore, ought
to be destroyed"
In expressing his views before
an assemblage of bankers, Mr.
Mondell declared that he had nc
doubt regarding their response to
an appeal for support in a reform
% important as that affecting taxa