Imperial Valley press. (El Centro, Calif.) 1907-current, 1931-12-09
Hoover Urges
Tax Increase
Continued From Page II

cent on incomes Of $4,000, gradu-
ated 20 81 per cent in incomes be-
tween 100000 and 100000, reach
ing 20 per cent on incomes III eX-
cess Of 100000. compared with
present maximum rate of 20 Der
cent in incomes exceeding 100000.
Postal Rates
Increased rates to raise a mini
mum OF sl50OO0,000 a year add
tional.
Mote: Postmaster General Brown
in his annual report just made pro-
POSED a cent letter rate, except
local. and increases in parcel post,
registered, insured and GOD.
mail and domestic money orders
Corporation Tax
Present rate CT y per cent to be
raised to l214 per cent.
Estate Tax
Ilz- Der cent supertax TO be
atooa 10 existing graduated tax
which reaches 20 per cent on eS-
tateS Of Sl0.000,000. Amounts paid
in state inheritance taxes to be
credited up to 80 per cent of nor
NAL federal inheritance tax, same
as now.
1t is not easy for any people to
determine to assume a large add
ticnal tax burden at a time when
their resources are depleted through
business depression, but in the long
,r.,11 host thaits
interests by doing whatever is re-
CURED to maintain the finances Of
their government on a sound basis,
Mellon said
Il am confident that increased
taxation, clearly necessitated by
emergency conditions, will meet the
supporting response Of our citizens
to the needs of the government. -
Fought BY Garner
The 1924 law was the first big
tax measure of the Coolidge admin
iStration. Originally recommended
by Mellon, it was revised radically
under the leadership of Rep. John
NJ. Garner, now Democratic speaker
of the house. Mellon opposed its
high income and inheritance tax
rates but in the present emergency
he is more favorable to them tenn
porarily, though still unwilling to
go to the maximum inheritance tax
of 1924
we are convinced that in the
long run lower rates are more pro-
ductive than the higher ones. Mel
Ion said. But these are not nor
nal times. There is a real emery
eccy resulting in the immediate
need Tor q substantial amount of
additional revenue. Until the
emergency is passed, we cannot
avoid utilization of emergency
measures.
We believe that the taxpayers
will recognize the facts of the sit
uation, and, particularly in view
of their temporary character. will
cooperate with the government to
make higher rates effective"
Mellon said the lower income tax
exemptions would bring back
100000 additional taxpayers, max
ing total of 100000 OF which less
than 100000 would contribute 90
per cent of the tax.
The taxpayer is asked to assume
q large additional burden" Mellon
said. 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"
He emphasized that money raised
by a government loan would in the
end have TO be redeemed by taxes.
There is a limit to the extent
which the government. under our
social and economic structure. NAV
wisely divert funds from private
employment to governmental USE"
Mellon continued. When We take
into consideration the mounting
burden Of STATE and local taxes, it
is net eXaggeration to say that we
are approaching that limit
Mellon said that in laying out
sac lro~rsm st has been assumed
..H- ~ he calendar year Of 1882
ta.-@ Hlll be definite improvement
IN he General conditions of indus
try and trade However, the gov.
eminent will be slow to benefit be-
cause any increased business next
year would not be reflected until
taxes are collected in 1888 and fur
thermore corporations may carry
toward prior losses in computing
income returns.
Mellon reiterated President Hoov-
er5 analysis OF the government
debt, predicting it would increase
S3,250,000,0 900 in the three years
1878.
Such a financial condition calls
for an immediate remedy" he
added.