Evening star., 1926-11-09
Sound Fiscal Policy.

President Coolidge's latest tax re-
Auction plan has a strong supporter
IN Secretary Mellon Of the Treasury.
In a statement covering the fiscal and
economic conditions OF the American
Government and country, Mr.. Mellon
outlines a sound policy which will
commend itself TO the people general
ly. He calls attention to a fact which
some of those dema ndins an imme-
Histe change in the permanent tax
rates either willfully overlook or fail
~ appreciate. The sources OF revenue
of the Federal Government are in
comes. customs duties and miscel-
ianeous internal revenue taxes. The
receipts from these sources may huc-
tuate violently. according to the pros
rerity Of the people who must pay the
tsres While surplus OF $3.50, 600 600
II expected at the end of the fiscal
year. June 80. 1927, there is no assur-
ance that the following fiscal year, un
der present rates OF ia xa ton. will pro-
dUce q surplus. Mr.. Mellon urges the
IN teopa rdy of tax increase ses a year or
two from today. at a time when the
people and the business of the country
might he far less able to bear ia xes.
the people should not benefit in the
surplus accruing i'm the Trea sury from
Federal ia xation. His plan is to give
the taxpayers credits on the income
taxes which they would pay to the
Government during the first half of
thA wear 1927. these credits TO he met
nut Of the Treasury surplus. Under
This plan. the taxpayers benefit just
as surely as they would benefit next
year from reduction in the rates Of
taxation. and at the ame time the
danger Of future trouble from a too
precipitate change in the tax rates is
eliminated
The country today is on the crest OF
q great wave of prosperity. The very
surplus Of taxes is the best evidence
Of this condition. A people lacking
prosperity does not roll up hundreds
of millions of dollars i'm it's Treasury.
No signs of break in the good times
are discernble on the horizon. But
this country has still billions of war
debts to settle with it's own people.
II is settling them far more rapidly
than had at Hrst been believed pos
aihle. The time to pay debts is when
there is money in the pocket. not
when the pocket is empty. When the
debts are maid. the country will he
better able to face any emergency
that may arise. Who would venture
10 predict that the United States will
NOT in the fnture ia ce emergencies he.
aide which those of the last war pale
into insignificance?
Under the guiding hand of Secre-
tary Mellon, taxes have heen reduced
or eliminated during the last six years;
the public debt has been reduced by
billions ~ dollars. His present advice
ta to avoid hasty tampering with the
tax rates. So as to escape danger OF
tax tncres ses later. The Mellon tax re-
duetion plan calling for drastic cuts
In the higher bra ckets OF the surtaxes
has proved it's wisdom. Tax receipts
have Increased despite the reduction
af tax rates. A recalcitrant Congress
delayed the adoption of the Mellon
plan in 1924. The present Congress
showed greater wisdom and followed
his advice.
A. hattie over the latest Coolidge
Mellon plan for tax reduction is i'm
pending. Not because il Is unsound.
bna because it's opponents are seeking
relN1csl advantage. Some of these
opponents sought political advantage
In 1894, when they blocked the Mellon
tax reduction plan. 1t is not on rec
erd they gained by their opposition.
Russian rims are initiating Ameri-
can movie stars. The Soviet idea ap-
pears 70 have extended TO the thought
that rAruta tion as we'll as property