| Show MELLON UrH UPHOLDS lD REFUND r POLiCY IN TALK OVER RADIO Treasury Favors Further Red Reduction of Taxes He Declares AGAINST AG I ST PUBLICITY Points to Reduction of National Debt 30 CAP I The rhe first public utterance rance of Secretary Secre Secre- tary Mellon as a member of the Hoover cabinet made tonight over the radio was a spIrited defense of the treasury's tax refund policy an assurance of treasury sympathy toward toward to- to ward further tax reduction and a reiteration of the de- de tion to wipe pe out the national na- na debt na-I na Jn in a speech broadcast under the auspices or of the Washington Eve Eve- ping Star Mr Ir Mellon outlined plans of his for improving tax admInistration debt refunding and budget saYings savings Tie Tle basic principle principles prin- prin ciple or of American government ft fI- lIe sOld said the quick repayment re re- payment or of national obligations the o of expenditures w with within th In income and the upholding orp or p public cr dit The of bettering arid aM r f t tac levying fj always alwa's were ere the before administration of- of DEBT REDUCED R o 0 other part of our financial policy has been more consistently than that providing forthe tOt for the prompt payment nt of public debt he continued the World war this policy polley was continued Today the national debt has been reduced to bl Proportions and about a year saved l In interest charges Eventually as that debt Is paid off oCt entirely this drain on our revenue will wll be bere- bere remoVed re- re moVed mo and We can look forward then theu to a a avery very ery great reduction In taxes Already taxes have been restored re- re stored to a peacetime level ThIs is progress in the rIght direction There Is still much that can bc done be done when rev rev- shoWs sufficient permanent increase At present there is a Continued on page 4 MELLON UPHOLDS REFUND POLICY IN TALK OVER RADIO Continued from page 1 growing demand for further reduction reduction tion In taxes on earned Income It ItIs Itis Is a with which I have hae alas alWays al- al Ways been In sympathy The treasury tress tress- ury will be glad to see the principle principle prin- prin ciple further carried Into law lass whenever er revenues justify such ac Ac- lion Another place where progress can bo be made Is In the administration administration adminis- adminis I of 01 the tax laws The real for Improvement ement lies In simplifying the administration of the tax laws and this the treasury Is making a determined effort effort- to do The government Is trying to settle each ta tax case promptly and finally and With duo due regard to the interests of both the government and the taxpayer EFFICIENT RECORD Since 1911 the of Internal Inter Inter- nal revenue re has collected almost and has assessed more than four billion ot t back taxes During this time It has refunded i less Iss than one billion dollars or approximately ap- ap proximately 2 l- l 2 1 per cent of the amount collected This Is a record or of efficiency that would be hard to equal and yet et responsible public officials while whilo not charging dishonest dis- dis honesty honest have hae attempted to dis- dis Is credit this record because occasIonally occasIon occasIon- ally allya a refund or of several millions of doll dollars rs hall haa been made to a single taxpayer The They neglect to state that the taxes paid b by such Individuals or corporations often orten run Into the hundreds of millions or of which only onh onha a small part Is ever refunded Mr Mellon said that the treasury policy polley always would be one ot of opposition op- op position to tAX public pub pub- lic and or of protecting taxpayers front subjecting their business at- at Irs to the scrutiny ot of their om- om the Idl idly curIous the solicitors solicitors so- so or of contributions and anil unscrupulous tJ practitioners seel seeking ing out possible future clients I He credited tho machinery of the I federal reserve reser system with enabling en- en abling the government to hand handle 1 refunding re- re funding transaction and short short- time borrowing in 1928 without creating disturbances In the tho money market Ito He pointed to the contrast contrast con con- between the vast sums now needed in the public debt and its floating short loans and th those se needed during durIn the Civil and wars but declared declare l that less disturbance to business and banking had been created In recent cent years ears by the great shifts of the huge modern debt than in previous periods pe- pe nods of the countr country's history He added that embarrassment embarrass embarrass- ment In the had been created b by the manipulation of much I smaller totals without a federal reserve re- re I serve system to guide procedure 1 Such In brief outline are the governments government's financial policies he added They still conform to the traditions established when the government gov- gov ov- ov emment was WIlS first founded We e cannot cannot can can- not do better than to follow those traditions and to make sure that in fundamental matters our actions square with those great Immutable principles which our forefathers with such consummate wisdom made a part or of the very structure of our government In this this' country tradition plays an important part in government I the treasury secretary continued In the conduct of business on the theother theother other hand we are singularly free as a a. people from being hampered by precedent It If a bridge must be built or a new process developed or an industry established we find the best and quickest way to do It and andare andare are not concerned because it was never done that way before It Is this initiative In blazing new naw trails this enterprise In overcoming s. s that have Jve made America great SLOW IN GOVERNMENT But in the conduct of government govern govern- meat ment we have been slow and rightly right right- ly so In introducing Innovations We have changed somewhat and can stilt still improve the structure of governmental machinery especially in the coordination of of related or overlapping In so far however as fundamental policies are arc concerned they have been based and are based toda today on certain guiding principles which with the passage of time hav assumed the force of great traditions This Is particularly true as regards regards re- re gards our financial policies These policies are few In number and may be easily enumerated One Is keeping of expenditures always within the revenues Another Is the payment of the public debt A third Is the levy Jevy of the lowest taxes consistent with the governments government's needs and still mother another Is' Is the support support sup sup- port of the pUblic credit so that the financial Integrity ot of th the government government govern govern- ment shall be a 3 rock amidst the fluctuations of Internal and world finance VITAL CONCERN These policies he said are of general interest because the business business busi busi- ness of nt has become so vast In extent and is so far reachIng reaching reach reach- Ing in its Influence that the manner In which it Is conducted Is of at vital concern to every man woman and child chUd in the countr country In so far as keeping down expenditures expenditures ex- ex is we have always believed that they should be kept within our revenues and that the piling of debts for current ex- ex i except In time of wat waris Is strictly to be avoided But before the establIshment of the budget system eight years ago there was no noway way of knowing what our expendi tures would be Each department went to congress and secured whatever what what- ever it could in the way of Since the budget system was established however congress has recognized the Importance of a balanced budget and has adhered strictly to the policy of keeping apprOpriations appropriations ap- ap well within the bUdget estimates Elaborating on the restoration of taxes to a peacetime level Mr lr Mel Mel- lelIon Ion said Over O two million Individuals In the lowest brackets have been re- re o or aU all for federal income income in- in come taxes and the substitution of f moderate rates for excessive ones has benefited all along the line Productive business by being relieved re- re of oppressive rates has found it possible to expand In an orderly manner As a result prosperity has become more general the national Income has increased and during the year rear 1928 which set a new record record rec- rec ord for prosperity the government received d revenues adequate for its needs even with lower rates and fewer taxpayers REPEATS RECOMMENDATION He repeated a treasury recommendation made to congress In 1923 which said The I f irn ss of r taxing more lightly Income wag wages Sj S 5 S S 4 f p. p t ii l Y f salarIes a and d professional services than the Income from a business or 01 from Investment Is beyond question In the first case the Income is Uncertain uncertain un- un certain and limited In duration sickness or death destroys It and old age diminishes It In tho other the source Income continues it may be disposed ot of during a mans man's life and it descends to his heirs Mr Mellon 1 expressed sympathy with witt the point of view of the average aver age man and woman Who wish simplification of income tax return forms but explained that it If the tax laws Jaws are to cover ajl ll the Intricacies intricacies of modern business then these laws Jaws must be technical in their provisions 1 |
