Evening star., 1931-12-09
TWO-yEAR INCREASE
Of TAXES IS URGED
Mellon Asks Wide Levies to
Prevent Deficit Now
Threatening.
tContinued From First Page)


lw more than $4,000 net income, be
graduated up to 81 per cent on incomes
Between 100000 and 100000 and
reach 40 per cent on incomes In excess
ef $500, 900.
Personal exemptions for heads Of fam
Gies would be decreased by 81 900, be-
coming $500. The single person ex-
amption would be reduced $500, be-
coming 81 900. For each dependent
t4o0 exemption would be allowed.
The earned income provision Of pres
snt law, under which 25 per cent If
The tax Is credited, would be continued
A half per cent would be added to
khe IL per cent corporation levy of now,
and the $1,000 exemption provision
eliminated. 1t was estimated this
would bring in 100000 by the end
sf next fiscal year.
Would Increase Other Levies.
The recommendations on miscel-
hneous taxes were: An increase OF
one-sixth in the present rates on to-
bacco manufactures and products except
cigars: an increase of ! cent in the
existing stamp tax upon sales or trans
fers of capital stock; extension of the
present tax on admissions through the
reduction Of the present exemption to
10 cents; tax on manufacturers sales
of automobiles, trucks and accessories
ut 5, 8 and az per cent, respectively;
q stamp tax on conyeyances of realty
Of SO cents for each $500 of value in
excess of 500; tax OF per cent on
manufacturers sales of radio and
phonograph equipment and accessories;
. stamp tax of 2 cents on each check
end draft; and tax on telephone, tele-
graph, cable and radio messages of S
cents for charges in the amount In ex-
soxs Of so cents"
The secretary estimated that the 1881
= period, under present circumstances,
would see q S4, ,440, 900 900 deficit and
the public debt lifted $3,250, 900, 900.
Sees Three Ob5ectives.
He set up these three objectives for
The legislation:
Substantially to reduce this fiscal
years deficit.
Provision of adequate revenue 20
meet current expenses next year, and
10 balance the budget for the 1884
nxcal period.
No specific postal rate increase was
proposed. Mr.. Mellon only asked that
It be sufficient to return sl50,00o 900
more annually, to Offset the post Office
&ehcit.
Cites Duty TO Taxpayers.
At the same time he seconded Presi-
dent Hoover's warning against in
creased Federal obligations. in these
words:
Additional expenditures for objects
IA themselves most meritorious should
be judged In the light of the further
burden which they would place upon
the economy of the Nation and upon
the public credit at 8 time of unusual
diff1culty.
''The taxpayer is asked to assume a
large additional burden. He Is entitled
TO know that the Government on its
part Is SO conducting its business as
not TO demand of him anything more
than is actually necessary. The Gov
eminent Is not an entity apart from
the life of the people and 1t has no
money to spend except what 1t gets
from the pockets of the people. The
Treasury cannot of itself create funds
Whatever 1t spends must be obtained
either through taxation or through the
sale of Government securities, and the
securities in the end must be redeemed
by taxes There is limit to the extent
to which the Government, under our
social and economic structure, may
wisely divert funds from private en-
ployment to governmental use. When
we take into consideration the mount
ing burden of State and local taxes, 1t
Is no exaggeration TO say that we are
approaching that limit" .-....