New Britain herald., 1927-10-31

t274.ooo.o0a.
 Anticipating tho demands which will he made for larger reductions on nh" grounds that the estimates Of the surplus for 1929 are too low in view of the fact that past estimates hay" always been low. the secretary denied that the Under"stimatos in tn" rast were th" result of "delibor- ate intention or policy"
 Every effort to avoid a repcji- ton of this result" he said. has boon made in preparation Of the cs- inmates her" presented. lt would be unWacrant'd anl uuwise 10 assume that in the present estimates thcr" is any concealed surplus. Tn those figures. the treasury has not con- sciously nor as q matter Of policy played safe.
 "If tax reductions arc made or appropriations voted on the assump- lion the present figures rnders'ate probable future receipts rnSponsl- biiity for such reductions or appro- priationS must b" assumed by those who advocate them. Tn" treasury has placed th" probable receipts al the highest figures compatibl" wit tho most dependable forecast and facts which careful and disinterestcd investigation could secure.
 HsIp Small Taxpayer
 'Ta 1,inEr he trC N1,' Mellon said that the effect Of the drastic cut in the maNimum surtaN rates and tho sharp reduction in the normal rates in past reynue bills was Ito benefit the small taxpayers and the large taxpayers somewhat more than those who's" taXabl" in comes fall in the brackets running from S1S.00O 10 S70, ,00n."
 He proposed adjusting the surtaX rates so that they would increase uniformly by one per cent for each additional s4,0o0 of income from sln.0oO 10 s7O.0o0 instead of tho present graduation of on" per cent for each additional S2.oao. Some ro- ducj;ons will be granted to all sur tax payer. he admitted by this plan but more particularly 10 thOs" whose incomes fall in the intcrmc- diate brackets.
 Renewing his app"a! for repeal of tEat "by tradition. legal theory and revenue ncco ssity. this tax belongs to th" states
 Mir Mellon told the committee. E." realized that great pr *surc would he brought to bear for Inc repeal Of the tax on automobiles but h" op- posed it vigorously.
 Fodcral appropriations for good roads amount 10 about SD, 5,oOu. .oOU, which expenditures. he said, Wcr" for the direct and immediate benefit Of automobile owners and. he added. 'thay should make some contribu- ton in return"
 Income Tax Restricted
 "'rhr income tHN has gradually bccomn so restricted in its applica- ton. that il is class rather than 2 national tax. For the calendar year 1925, 956n taxpayers returned about 49 per cent of the total tax re- turned 327oiS individuals TO- turned s76t.t97.726 out of q total of $734.c55. .1&$. out of our entire popr- la,ion of II. millior@. only .. 50l,- iG individuals rcturncd taxable in come, and of these @,174. 14S returned only 5000, ,000 Of tax, the balance of s70l, ,0o6,0o being returned by 327.o1S individ- tals and tf these, 2.l74.14S returned only S33. .on0. .000 of fax. the balanc" of s70l. .no0.00o being returned by @7.0iS inliyiduals. According 10 thosa returns. less than "-1 Q of per c,mt of our population returned @5.5 per cent of our total income tax: about Ia per cent rcturn"d 4.5 per cent. and tho remaining ?7.H per cent of the population returned no tax whatsoever.
 Obviously, some other taxes should be retained"
 Arguments for retention Of tho @utomobil" tax. be said. apply vii h equal force for continuance of the admissions tax, which cannot be held ito be burdcnsome or 10 impose a restriction on legitimate rccrcation.'
 This TaN-Idcal
 "I' Is difficult 10 imagine" h." said. "a more ideal tax than one on the $40 ringSidc seats at the recent Drmp pscy-Tunncv fight. Surely no enc Will contend that the men and women who were willing 10 pay s4o for q s"ut for thirty ninutcs of box