The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1925-10-19
MELLON URGES
LOW ERING OF
MANY TAXES
Reductions Suggested by
Treasury Head Would
Total About $4,000, 900

! washington. Oct. lC.~A)-A taH
! reduction Of $3.50. 100000 TO $500
i\UOu.OOO was recommended to con.
! .reas today by Secretary Mellon.
) Without attempting to lay dowr
definite schedules he suggested tina,
! = return in surtax to 20 per cent in
! place of the present 81 per cen,
would not cripple the treasury.
This would reduce the maximum
! tax, surtaX acd normal. levied or
/ ne largest income to % per cent. IL
no" is ~ per cent.
! The secretary also advocated these
| additional changes:
Repeal of the estate tax.
Repeal Of the gift tax.
Reduction of automobile taxes by
repeal of the lcvics on trucks, tires
and accessories.
Repeal of number Of miscellan-
cous taxes. such as hat on works Of
! art brought from abroad.
Repeal of the publicity section of
the income tax law
Amusement Tax to Stand
He opposed repeal Of the tax on
tickets to theatres and other places
Of amusement and various other pro-
posals for amendment of the present
law. including any extension in the
jurisdiction Of the board Of tax ap-
pealS.
The secretary's recommendations,
based on the conclusions of treasury
officials that a surplus of 1920. Co.,
000 is in prospect this year in fed
cral revenues. was submitted to the
house ways and means in the open
ing Of its hearings on tax reform.
He made reference in his state
ment to an "inequality in taxation"
produced by the earned income eX-
emption allowed in the present law,
but he added that if the 90 per cent
maximum surtax is accepted, the in
equality foStered by the clause Civ
ing credit on incomes below $4,000
as earned incomes "will not be so
pronounced"
The treasury secretary also renew
amendment aholishinE taX-cxempt
fourteen billion dollars. The govern
the "artificial' advantage held by
Of the proposed 20 per cent surtax
VIII Wv ZIG WI NJ lllC SCStSltIS
The gift tax was characterized by
MANY artificial restraints and in
He declared: "The excuse for the
gift tax would entirely disappear if
the 20 per cent maximum on income $
is adopted"
Mr.. Mellon told the committee that
hnr cd,
the bulk of automobile taxes consti-
government is contributing 100000
COO year towards road builL NJ
and the automobile taxes. including
those on trucks. tires and acccssor-
les. were yielding annually about
| $l25 600, 900.
"Thc $35,OO0,O0O might be taker
Off" Mr.. Mellon said. but SO long
as the government: is contributing
tie $9G.00O.0O0 year to tbs roads
on which the automobiles run, they
. certainly ought to pay their way"
Revenues Mus. Pay Expenses
He warned that it was not we'll ia
cut the receipts beyond reasonable, "
needs. The treasury. since the war
he said, has ''been living partially
upon capital" as constituted by re-
, turn of the investments made
through the war finance corpora
ton, repayment of loans to. railroads
and sale Of surplus war supplies.
''As these sources give out" he
| continued. eve will have to pay our
current expenses out of revenues"
Mr.. Mellon sought to defend the
treasury's debt retirement policy
which has been attacked by some
Democrats on the ground that if the
debt were retired less rapidly, great.
er cuts could be made in taxes.
"While, taking the people as a
whole, it is immaterial when the wal
debt is paid" he said. "still as be-
tween the different classes of pco-
pie. the investing class holding the
bonds and the producing class from
whom a larger part Of our taxes are
collected, inequality exists. We
should not tax too heavily the pro-
ducers to pay the security holders. 1t
is for this reason that we have
sought balance between debt re.
turn and tax return"
Reduction Stimulates Business
Discussing the suggestion for a
maximum Of 20 per cent Mr.. Mellon
asserted there had been stimulation
to business every time the surtaN
rates had been reduced.
had been an evident increase in tau
sources. and the increased income
"has made up great part, if not all