Show TAX PROGRAM ADDS BILLION ONTO INCOME Mellon Lays Plans for Emergency Emergency Emergency Emer Emer- gency Measure Before Ways Means Body By Br United Press Freas WASHINGTON Jan 13 The 13 The administrations administration's administrations administration's admInistrations ad ad- ministrations ministration's program for levying nearly of oC added taxes in inan inan I Ian an emergency effort to balance the national budget was laid bid before Defore the house ways and imd means committee today to today day b by Secretary of Treasury Mellon Mellon was the first witness called by the committee as it began hearings hearings hear hear- ings on its unwelcome task of oC drafting draft drafting in ing a bill to impose new and md higher taxes on the nation The secretary following out his earlier recommendations to congress advocated a return to the income tax rates of C 1924 and the imposition of or new special taxes on automobiles theater tickets telephone and telegraph telegraph tele tele- graph message checks and other j items terns For the fiscal year car beginning next July Mellon estimated the increased and new taxes he proposed would yield additional revenue as follows ADDITIONAL REVENUE Higher taxes on individual ual incomes High tax ax on corporate incomes incomes in in- comes Super tax on estates Higher tax on tobacco 00 Realty transfers Stock transfers Automobiles and accessories Theater tickets Radios and phonographs Telephone and telegraph messages Checks and drafts Increased postal revenue Total The proposed income tax schedule would ou d require payments by all single individuals earning more than 1000 and by all married persons with an I income over 2500 An additional exemption exemption ex ex- emption of would be allowed for I each dependent On the first of ot taxable income the tax would be 2 per cent instead of ot the present 1 2 1 per cent On the next it would be 4 per cent instead of the present 3 per cent On taxable income above the normal normal nor nor- mal rate would be 6 per cent LEVY SURTAXES In addition surtaxes ranging up to 37 per cent would be levied on incomes incomes in comes from to On I incomes of more than the tax would reach a maximum of 40 per cent The proposed revisions would bring back into the taxpaying group some Secretary Mellon said Even so our income tax law Jaw would still remain a tax paid b by relatively relatively rela few individuals There would be only some federal taxpayers ers in a nation of at people and of ot this number less than would contribute 90 per cent of the tax The secretary emphasized the advisability ad ad- visibility of balancing the budget in inthe inthe inthe the next fiscal year ear He estimated the treasury deficit for the fiscal year ear ending June 30 at and said this would cause an increase of ot in the public d debt bt But coincident with tax increases there must be real economy in gov government government OV expenditures Mellon warned RIGID ECONOMY We are arc only just justified in making this call if at the same time we eliminate eliminate nate hate every unnecessary expenditure and sec see to it that just as enforced rigid economy prevails pre in every home in the land so must it be observed ob ob- observed served in every operation of the federal federal federal fed fed- eral government the secretary said In addition to raising the tax on larger incomes it is imperative to draft a new army of ot federal taxpayers ers he held Man Many not now taxed are very definitely in a position tomake tomake to tomake make some contribution to the support support sup port of or the government They should be asked to do so so This basic basie concept underlies the entire program which the treasury department is submitting for tor your our consideration We are in the midst of a grave emergency It is essential to raise additional revenue not just to cover current expenditures but to maintain unimpaired the credit of ot the United Unite States government This last objective objective objective tive is of paramount importance to every citizen in ip the land It is an indispensable step in our progress toward recovery |