Evening star. [volume] (Washington, D.C.) 1854-1972, 1926-12-30
S4O0,0]O,00O LEVY
DUE TO MISTAKES
Mellon Says $175,000,0 900
Refund Has Been Made on
Last Years Errors.

While the Treasury refunded $175,-
600 900 in illegally collected taxes last
fiscal year, Secretary Mellon declared
today that during the same period it
had collected $500, 100000 in additional
levies made as q result of mistakes
by taxpayers in computing their re-
turns or in failure to make returns.
The bulk Of the refunds resulted
from regular court orders, Mr.. Mellon
said, and many of them resulted from
mistakes by the Government in inter
preting provisions of the excess profits
tax. which is not now in existence.
The list of refunds paid by the
Government during the last fiscal
year was sent to the House ways
and means committee this week by
! Secretary Mellon, in accordance with
the revenue law, which provides that
| the Treasury indicate to whom the
refunds are given.
President Coolidge has forwarded
to Congress a request for another
SITS 900, 600 appropriation to take
care of refunds which will have to
be paid during the next fiscal year.
All persons named in the list sub
mitted this week have been paid.
Oldfield Urges Cut.
TuTIf1PE I6dSOtt III ICA AtNuNetCA
legislation at this session of Congress
is found by Chairman Oldfield of the
Democratic congressional campaign
committee in the request for an ap-
preparation of SITS 100000 for the re-
funds. He says that it calls attention
to the fact that the Government is
collecting entirely too much money
from: both individuals and corpora
tions.
Making it plain that he is, not
criticizing the refunds, Mr.. Oldfield
says: 1.-The greater part of the money
will go to a relatively few individuals
and big corporations, for instance the
du pont interests, which will get back
| from the Federal treasury approx
mately $10,000,0oU.
while it is probably true that most
of this money was collected unjustly
and possibly illegally, it is also true
| that lot of this tax money was
passed on to consumers who Will re-
ceive none of the benefit from the re-
funds 1t is also true that unless
there is immediate tax reduction legls-
lation, the Government will collect
approximately a half billion dollars
more from the taxpayers during the
present fiscal year than 1t actually
needs. and that is as unjust as was
now asks an appropriation to refund.
IF he will give his approval to the
tax reduction bill now before the
House, which would reduce taxes
during the calendar year 1927 approx
imately $35O,O00, 900, he will be help
ing to do something for the consum-
ing masses who will get little or
nothing out of the $175. 900, 600 refund
appropriation now recommended.
Mellon Takes Exception.
eft would be much better for Mr..
Mellon to join in this just plan of
relief than to go on collecting exces-
sive and UNJUST sums, and then come
| to Congress next year on the eve OF
another presidential election and ask
| for refunds and reductions for poiiti-
| cal and not economic reasons and
which would directly benefit only
relatively few people, but give no re-
lief to the consuming millions on
whose shoulders more than 40 per
cent of these tax burdens are I'M
| loaded
/ Taking exception to the charges or
! REPRESENTATIVE Oldfield, Democrat, of
/ Arkansas that the refunds OF taxes
showed the Treasury was collecting
| roo much money, and therefore there
should be a tax reduction, Secretary
of the Treas ury Mellon today sara
most of the refunds were made from
! taxes collected under the old excess
/ profits law, no longer on the statue
books.
| It could not be logically concluded.
according to Mr.. Mellon. that because
the courts decided certain funds had
been illegally collected under an ex-
ceadingly difficult law to administer
that the Treasury could now stand
tax reduction. The refunds, he point
ed ont. were from decisions of both
| the Board of Tax Appeals and the
courts. and arose out of exceedingly
technical questions difficult to decide.