Evening star., 1931-12-13
INCOME TAX YIELD
MAY Be CURTA|LED
Extent of Business Depres-
sion viii Affect Return
on Levies.
BY BRADLEY w. TRENT.

Special Dispatch to The Star.
NEW YORK, December I2-Wall
Streets reaction to the new tax pro-
posals Of Secretary Mellon, which he
hopes may become effective from Janu-
airy l, is that the proposals, in effect,
the 1924 schedules, are as good as may
be expected under the circumstances.
1t Is thought that If the Treasury can
obtain enactment Of the plans into law
In the present Congress in time to get
needed funds, more extended tax pro-
gram may be devised subsequently It Is
recognized that the new excise taxes are
arbitrary, in the sense that they bear
upon certain classes of manufactured
goods while letting others escape, but
their trend is toward luxury goods.
1t Is recognized also that while the
Treasury has widened the list of those
who will pay income tax, 1t also has in
creased the burden upon large incomes,
SO that the income tax will remain as 1t
has always been, a class tax, the bulk of
which is paid by a small percentage of
the population.
Increase in Taxpayers.
In some quarters there is q disposi-
ton to question whether Mr.. Melons
estimates on the yield from the income
and surtax in the next two years will be
anywhere near equal the actual yield
since the income tax is SO responsive to
the business situation According to
Treasury figures 5,5l8,310 persons paid
the income tax in 1924, which in that
year yielded SLOTS 900 900, while in
1928 about 2,523,063 persons paid taxes
on incomes, which yielded in that year
81 ,204 900 900. UnderSecretary of the
Treasury Mills in an address made last
May stated that while $500 600 paid IN
come taxes. 81 per cent Of the amount
paid was collected from $50 900 persons.
The half OF l per cent larger income
tax on corporations is characterized as
straw laid SO gently upon the camel's
back that 1t will not quite break It, 1t
Is not quite so severe as the 1871 per
cent rate OF 1926-27 nor as pleasing as
the 10 per cent which was levied on
corporate income in 1920 and 1921.
The principal interest in the financial
district in the tax program proposed by
Secretary Mellon appears to be in the
probable yields of the new excise taxes
and increased old taxes. In the case of
the bank check tax no reliable esti-
mates can be made, for such a tax has
not been in effect since Spanish War
days.
Other Taxes.
The increase of the rate on tobacco
products probably will be productive in
so far as it applies to cigarettes, which
are now contributing the bulk of the
tobacco taxes, but for some time the
Treasury has felt the limit of return on
cigar taxes The theater admissions
taxes in 1924 yielded the fairly respect
able sum of s77,7l2,524, and it is not
improbable that by making all admis-
sions over 10 cents taxable the Treasury
may make this tax much more produc-
tive. The new tax on telephone and
telegraph messages may yield more
than the $34 ,662. .429 brought in by SINH
lar taxation in 1924, but letter writing
will be encouraged, even If the postage
rate should be raised The sales tax
upon automobile manufacturers doubt
less will be the most productive of the
new miscellaneous levies, since this kind
Of impost in 1924 produced 5000, ,e2l, ,721.
tCOpyright, 1891