The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1925-06-17
100000 0 D
GUT IN TAXES
PLANNED
Mellon Proposes Slash ''AII
Along the Line" in
1926

t~SO
EVeYy man, 1UonsG7t, and child IN
The United States is hit By Fed
eruL taxation. As Congress qUiH
consider tar reduction legislation
ne1t fall, The Washington Times
has cGnvGssed every political fac
tiOn IN Washington to determine
tR advance h0aU much tGr relief
The American people can erpect.
The foLLoGcfag article, the first of
a series, reveals the attitude of
the Treasury Department:
ny WILLIAM X. HUTCHINSON
The American people win be
offered $S00,0O0,00O tax melon in
1926.
Secretary of the Treasury Mel.
lon will propose reductions '.all
along the line" in the vast net
work Of Federal taxes and in many
instances he will recommend the
elimination Of such levies az have
come to be known as nuisance
taxes" His recommendations will
benefit every man VINO files an In.
come tax return or who helps TO
pay the Federal taxes levied upon
American industry.
There win be more relief for
the poor man in 1926 than there
was this year. greater reductions
for the fellow with moderate In
come and substantial relief for both
the rich man and the great corpora.
ton. 1t will be a. tax melon Tor
all the people and for Al classes
Of people.
In the Secretary's own words, a.
given to The Washington Times.
the Treasury Departments recon-
mendations can be summed up as
follows:
saThe condition of the Treasury
next year will be such as to permit
substantial reductions OF revenue
through tax reforms.
al believe the present law needs
revision by notifications to re-
duce the surtax rates to at least
rs per cent, to reduce sharply or
to leave the estate taxes entirely
to the States, to repeal the gilt
taxes, to repeal the publicity fea-
lures and to reduce all classes OF
income taxes and the so-called
miscellaneous taxes as far as the
requirements Of the Treasury VIII
permit"
It is aimed to make the reduc-
tss effective at an early 0a'e IN
A. Mellon says. the reductions
DilT be as Tar as the requirements
n the Treasury win permit. This
means he will cut tax melon
equal 10 the estimated surplus 70 ns
in the Treasury on June 30. 1879.
the end of the next fiscal year.
In a few days President Coolidge
viii tell the nation that this poten-
tiai surplus is now estimated at
from $3.50, 900. 600 20 $500, O00. 900.
There is noW about 800, 100000 sur
plus 81 tSe Treasury. but within .
year IKE sum is expected to -
DOUBLED. at least. !. and probably
sY.ipled. At any rate. this viii form
he basis Of HIeIlon's melon" and
to nation. can exrect Treasury De-
nArtmeef recommendations for a
tax reduction of $500 100000 next
year.
n the field of income taxes the
Secretary will recommend. either a
slight increase in exemptions or a
slight decrease in the minimum nor.
nal rate. This will be the poor
mans share OF the melon"
In the surtax bracket, affecting
the rich man, the secretary Will
recommend reduction of the
present maximum 40 per cent rate
to at least % per cent. This was
the principal feature Of the So
called Mellon plan" submitted to-
Congress two years ago and reject.
ed by that body with scant cere-
mony. It's reception this year viii
be entirely different, according to
an indications, and undoubtedly It
VIII be written into the law.
- NA - Hn~-
Mellon objects to his recommends
lions being termed a Mellon
plan" He AYERS that two of his
Democratic predecessors, Secre-
taries of the Treasury Huston and
Glass. both recommended the same
reductions to preceding Congresses.
In the field of estate. inheritance
and gift taxes, the Secretary be-
lieves these levies should be elimi-
mated and these sources Of taxation
left solely to the, States. He be-
lieves that the present rates, with
a maximum Of 40 per cent, amount
to confiscatIon in many instances
when the various States add an
additional assessment against the
property of departed citizens.
The nuisance" taxes will be en-
tirely eliminated, If the Secretary
has his way. He feels these as
sessments not only are a part Of
wartime taxation which should now
be dispensed with, but that they
do not bring in enough revenue to
warrant the annoyance they cause
taxpayers. He also is of the opin-
ion that they discriminate against
certain industries over all others.
The Secretary also will ask Con-
gress to eliminate the publicity
features of the present law, which
permit publication of the amount
OF income tax payments. He feels
these provisions are detrimental to
business and are harmful to bust
ness men.
All in all, the Treasury Depart
ment will do all it can to bring.
about a wide distribution of the
$500, 900 900 tax melon The final
step. Of course, will be up to Con-
grless. which must enact the neces.
sary legislation.