Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-03-31
MELLON PREDICTS
EVENTUAL W|P|NG
OUT OF u. S. DEBTS
Treasury Chief Foresees
Great Reduction in Taxes as
Result of Present Policies.
REFUNDS ARE DEFENDED
IN FACE OF CRITICISM
Reiterates Sympathy Toward Fur
ther Cuts on Earned Income
Levies in Radio Address.

4VN4Co ia 4SA0AO &4UuAV0Ss
Declaring the year 1928 set "new
record for prosperity under the present
policies of the Government, Secretary oi
the Treasury Mellon, who has been
guiding the financial destinies off the
United States under three Presidents,
predicted last night that continuance OF
these traditional policies eventually
would lead to elimination Of the public
debt and a "very great reduction in
taxes"
In a radio address for the National
Radio Forum, under auspices of The
Star, through Station WMAL and the
coast-to-coast network Of the Columbia
Broadcasting System, Secretary Mellon
vigorously defended the Treasury policy
on tax refunds, reiterated his sympathy
toward further reductions in taxes on
earned income, and declared such re-
ductions should be made whenever
revenues justify such action"
Mr.. Mellon replied to responsible
public officials" who, he said, had at
tempted to discredit the record of the
Treasury on tax refunds because occa-
sionally a refund of several million dol
lars had been made to single tax
payer. Since 1917, the Secretary said,
less than 81, ,00O, 100000. or only 2l2 per
cent of the amount collected, had been
returned.
Taxpayers were assured by the Secre-
tary that the recent regulations on
publicity of tax refunds would not make
public the income tax returns Of the
people to competitors, idly curious, the
solicitors of contributions and unscrupu-
lous practitioners seeking out possible
future clients
Explains Treasury Policies.
Speaking in direct and simple Ian
guage to his listeners throughout the
country, he explained the fundamental
Treasury policies under which the un-
precedented prosperity of the United
States is proceeding. He related the
efforts to keep expenditures within reve-
nues, to reduce the public debt, to levy
the lowest taxes consistent with the
Government needs and to support pub
lie credit so that the financial integrity
Of the Government shall be q rock
amidst the fluctuations of internal and
world finance"
Secretary Melons address opened a
series of messages to the American peo-
pie from members of President Hoover'S
cabinet, over the National Radio Forum,
arranged by The Washington Evening
Star, and sponsored by the Columbia
BroadcaSting System. He spoke through
a microphone Of station WMAL in the
newly established radio broadcasting
studio of The Evening Star, located on
the fourth floor of The Star Building.
The address was the first to be broad
cast from this studio, which will be
used for succeeding cabinet officers
addresses, other features OF the forum,
and Evening Star broadcaStS.
In his discussion of future possible
tax reduction Mr.. Mellon made no ref
erence to any specific time when he
thought Congress might proceed to
further tax revision, except the indef1-
mite prediction Of whenever revenues
justify such action" @
Can Expect Tax Reduction.
Pointing to the fact that the public
debt had been reduced to manageable
proportions 50 that about $500, 900 900
a year was saved in interest charges,
the Secretary said, eventually, as the
debt is paid or entirely, this drain on
our revenues will be. removed, and we
can look forward then to a very great
reduction in taxes"
Mr.. Mellon reported that more than
100000 individuals in the lowest
brackets had been relieved of all Fed
eraI income taxes, and moderate rates
had succeeded excessive ones" all
along the line.
Productive business, by being re-
lieved of oppressive rates." said Secre-
tary Mellon, has found it possible to
expand in an orderly manner. AS
result, prosperity has become more gen.
eral; the national income has increased;
and during the year 1928, which set
new record for prosperity, the Govern
ment received revenues adequate for its
needs, even with lower rates and fewer
taxpayers.
This is progress in the right direc-
tion," he said. There is still much
that can be done and should be done
when revenues show sufiicient perma-
nent increase"
Referring to "a growing demand for
further reductions on earned incomes"
the Secretary said he still was in favor
of such reductions, and that he had
recommended it to Congress as long ago
as November, 1928.
"The Treasury is still of this opinion,
he said, "and will be glad to see these
principles still further carried into Law
whenever revenues justify such action
Tells of Tax Administration.
Progress in administration of the taS
laws was still possible, MFR. Mellon
pointed out, with a view to further
Turning to refunds, Secretary Mellor
said that since 1917 the Bureau of In
ternal Revenue had collected almost
$39, 600 ,000,0 and had assessed more
than $4,000, ,000, 600 of back taxes. Dur,
ing this time. he said, "it has refunded
less than 81 ,000, ,000, 900 or approximate.
notwithstanding the large amounts re-
funded under interpretative court de-
cisions or because of retroactive legisla.
ton or under provisions Of the Law
which can be administered only through
refunds. Even the credits and abate
Ynents allowed. since 1922 have amount
ed to less than $4,000, ,0O0, 900. 1t is
record of efficiency that would be hart
to equal. And yet responsible public
officials, while not charging dishonesty
:. have attempted to discredit this recort
because occasionally refund OF severa
million dollars has been made 10 SIN
Gle taxpayer They neglect to stat
that the taxes paid by such individual
or corporations often run into TN
hundreds of millions, of which only
small part is ever refunded"
Under the system set up by tn
z Government to carry on its own finan
cial operations with the least possible
disturbance either to business or to tn
individuals of the country, Mr.. Mellol
said much improvement had been mad
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