The Waterbury Democrat., 1931-12-09

We cannot maintain public con- fidence nor stability in the federal government without undertaking some temporary tax increases" said President Hoover in his bud- get message.
 Mellon, at the same time, laid down the detailed program in his annual report to congress.
 The administration plan, based roughly on the 1924 tax law, rec ommends these taxes: Miscellaneous Taxes Checks and drafts 2 cent stamp tax on each. Telephone, telegraph, cable and radio messages = 5 cents on charges between IA cents and 50 cents; 10 cents on charges in ex- cess of 50 cents.
 Admissions - extension of pres- ent 10 per cent tax by reducing present exemption from $3 to 10 cents.
 Radio and phonograph equip ment and accessories - 5 per cent on manufacturers sales.
 Automobiles Passenger cars, per cent; trucks, per cent; ac- cessories, 1-2 per cent, on fnanu- lecturers sales.
 Increase of one-sixth on cigar cites and tobacco products except cigars.
 Increase of one cent in existing stamp tax on sales of transfers of capital stock.
 Conveyances of realty--50 cents on each $500 of value in excess of $100.
 Individual Income Tax
 
 per cent, now l 1-2 per cent; next 4,oo0. 4 per cent, now 8 per cent; remainder 6 per cent, now 5 per cent.
 Exemptions Single, $1,0O0. now $1,50O; married, $2,600, now $3,500; dependents, $400 each. no change. No change recommended in 25 per cent reduction on earned incomes up to $30,000.
 Surtaxes - Beginning with l per cent on incomes of $1O,O0O. graduated to 37 per cent on in comes between $100,000 and $2OO,- 900, reaching 40 per cent on in- comes in excess of $500,000 com pared with present maximum rate of 20 per cent in incomes exceed ing $1O0,000.
 Postal Rates
 Increased rates to raise a mini mum of $150,000,000 year ad- ditional. (Note-Postmaster Gen eral Brown in his annual report just made proposed 3-cent letter rate, except local, and increases in parcel post, registered, insured and c. O. D. mail, and domestic money orders)
 Corporation Income Tax
 Present rate of 12 per cent to be raised to 12 1-2 per cent.
 Estate Tax
 Five per cent supertaX to he added to existing graduated tax which reaches 20 per cent on eS- tates of $1O,O00,O00. Amounts paid ih state inheritance taxes to be credited up to 90 per cent of nor nal federal inheritance tax, same as now.
 'It is not easy for any people to determine to assume large additional tax burden at time when their resources are depleted through business depression, but in the long run they will best serve their own interests by doing what ever is required to maintain the finances of their government on a sound basis" Mellon said.
 1T am confident that increased taxation, clearly necessitated by emergency conditions. will meet the supporting response of our citizens to the needs of the government. .
 "The increase of the revenues must be decisively undertaken, but the promptness with which full ad- justment can wisely be affected is conditioned upon existing economic circumstances. The rate at which debt reduction has hitherto been effected .still permits some leeway. Additional tax burdens should not be so great as to retard the busi- ness recovery upon which the re-