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Taxation: The People's Business.
The Making of the Modern Legal Treatises, 1800-1926 includes over 20,000 analytical, theoretical and practical works on American and British Law. It includes the writings of major legal theorists, including Sir Edward Coke, Sir William Blackstone, James Fitzjames Stephen, Frederic William Maitland, John Marshall, Joseph Story, Oliver Wendell Holmes, Jr. and Roscoe Pound, among others. Legal Treatises includes casebooks, local practice manuals, form books, works for lay readers, pamphlets, letters, speeches and other works of the most influential writers of their time. It is of great value to researchers of domestic and international law, government and politics, legal history, business and economics, criminology and much more.
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The below data was compiled from various identification fields in the bibliographic record of this title. This data is provided as an additional tool in helping to insure edition
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Minnesota University Law Library
CTRG99-B888
New Macmillan, 1924. 227 p.; 20 cm
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The below data was compiled from various identification fields in the bibliographic record of this title. This data is provided as an additional tool in helping to insure edition
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Minnesota University Law Library
CTRG99-B888
New Macmillan, 1924. 227 p.; 20 cm
218 pages, Paperback
First published January 1, 1924
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147 people want to read
About the author
Andrew W. Mellon
5 books6 followersAndrew William Mellon (March 24, 1855 – August 26, 1937) was an American banker, industrialist, philanthropist, art collector, and Secretary of the Treasury from March 4, 1921 until February 12, 1932.
See http://en.wikipedia.org/wiki/Andrew_W...
See http://en.wikipedia.org/wiki/Andrew_W...
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Displaying 1 - 8 of 8 reviews
September 15, 2021
Classic short read, written in 1924 by Andrew Mellon, which many say is the origin of the Laffer Curve. Essentially what Secretary Mellon says here is that the government’s objectives in taxation are to: (1) maximize revenue for the government; (2) lessen the burden of taxation on those least able to bear it; and (3) be cognizant not to retard stifle or penalize the productive taxpayers by discentivizing innovation or hard work. As to (1), it is important to note that higher tax rates do not necessarily mean more revenue because at some point taxpayers will be disincentivized from earning and/or producing, or alternatively simply find legal tax loopholes. In this regard Secretary Mellon advocates for a simplified tax code that does away with such loopholes and also argues against tax-exempt securities. On (2), Secretary Mellon recognizes that those who earn more should pay more in taxes, but that a surtax (aka progressive tax) was only justified (if it all) in times of war. Tax policy should not be a means of rewarding one class of taxpayers or punishing another. If such a point of view ever controls our public policy, the traditions of freedom, justice, and equality of opportunity, which are the distinguishing characteristics of our American civilization, will have disappeared and in their place we shall have class legislation with all its attendant evils. The man who seeks to perpetuate prejudice and class hatred is doing American an ill service. In attempting to promote or defeat legislation by arraying one class of taxpayers against another, he shows a complete misconception of those principles of equality on which the country was founded. Regarding (3) high taxes relieve the idle man and punish the producer. The most noteworthy characteristic of the American people is their initiative. It is this spirit which has developed America, but if the spirit of business adventure is killed, this country will cease to hold the foremost position in the world. Finally Secretary Mellon gives a dire warning about plunging into too much debt (some debt is useful) and alludes to the condition of Germany’s Weimar Republic as proof of the dangers of too much debt, financial pyramiding, and eventual inflation. Orderly debt retirement out of surplus revenues is better calculated to restore prosperity.
January 15, 2013
Mellon was the Secretary of the Treasury from 1921-1932, a period of Republican presidents (Harding, Coolidge, Hoover). While Mellon's book is primarily a compilation of letters he had written to Congress, expressing his opinion on various tax issues, many of this views are remarkably thoughtful. On tax reform, for example, Mellon wrote, “Tax revision should never be made the football either of partisan or class politics but should be worked out by those who have made a careful study of the subject in its larger aspects and are prepared to recommend the course which, in the end, will prove for the country’s best interest.”
Regarding the deficit, his insight is,“Wars, past and future, are responsible for the consumption of over three-fourths of the public revenue. It is time to face the facts and recognize that, in spite of the utmost economy that can be effected in administration, the cost of government cannot be greatly reduced so long as wars continue to recur with their aftermath of vastly increased expenditures.”
And finally, regarding whether the income from labor or from business and investments should be taxed more heavily, his answer--considering he was one of the wealthiest men of his time--was surprising. “The fairness of taxing more lightly incomes from wages, salaries and professional services than the income from business or from investments is beyond question. In the first case [wages], the income is uncertain and limited in duration, sickness or death destroys it and old age diminishes it. In the other [business, investment], the source of the income continues; in income may be disposed of during a man’s life and it descends to his heirs."
"Surely we can afford to make a distinction between the people whose only capital is their mental and physical energy, and the people whose income is derived from investments. Such a distinction would mean much to millions of American workers and would be an added inspiration to the man who must provide a competence during his few productive years to care for himself and his family when his earning capacity is at an end. . . . [And] if the distinction between unearned income and earned income is good, it is good in every bracket.”
Regarding the deficit, his insight is,“Wars, past and future, are responsible for the consumption of over three-fourths of the public revenue. It is time to face the facts and recognize that, in spite of the utmost economy that can be effected in administration, the cost of government cannot be greatly reduced so long as wars continue to recur with their aftermath of vastly increased expenditures.”
And finally, regarding whether the income from labor or from business and investments should be taxed more heavily, his answer--considering he was one of the wealthiest men of his time--was surprising. “The fairness of taxing more lightly incomes from wages, salaries and professional services than the income from business or from investments is beyond question. In the first case [wages], the income is uncertain and limited in duration, sickness or death destroys it and old age diminishes it. In the other [business, investment], the source of the income continues; in income may be disposed of during a man’s life and it descends to his heirs."
"Surely we can afford to make a distinction between the people whose only capital is their mental and physical energy, and the people whose income is derived from investments. Such a distinction would mean much to millions of American workers and would be an added inspiration to the man who must provide a competence during his few productive years to care for himself and his family when his earning capacity is at an end. . . . [And] if the distinction between unearned income and earned income is good, it is good in every bracket.”
February 21, 2009
Interesting to see what the goal of taxation used to be. A lot of effort went into thinking about paying down the national debt and then reducing taxes afterwards. [sigh:]
May 29, 2012
Where's this guy when you need him!
April 4, 2021
Very Best Case For A Flat Tax!
By 1924, under the VERY able administration of Andrew Mellon as Secretary of the Treasury, the United States has balanced the budget with a small surplus each year and was making great progress at paying the War debt. The high tax rates being charged on high incomes, which had been implemented during the War had remained unchanged, yet collections were rapidly shrinking due to the wealthy using legal tax shelters to avoid taxes, just as they do today. In this brief book, Andrew Mellon laid out the very clear and succinct case for the Flat Tax and elimination of loopholes allowing so much income to be concealed, in spite of the fact that he was one of the wealthiest men of his day and benefited from the shelters himself. He has facts and figures from the three previous year's receipts to demonstrate the validity of his argument that high taxes drive capitol OUT of the marketplace and has an extremely adverse trickle down effect to the lowest level earners. Absolutely EVERYTHING he writes could be applied to modern day, except for the part about, in 1924 they continuously slashed and reduced the size of government to keep the budget in line. It is a book EVERY American should read to understand how very "off the rails" we've gone fiscally.
But he also said this in one of the opening paragraphs that was as prescient as it gets: "I have never viewed taxation as a means of rewarding one class of taxpayers or punishing another. If such a point of view ever controls our public policy, the traditions of freedom, justice and equality of opportunity, which are the distinguishing characteristics of our American civilization, will have disappeared and in their place we shall have class legislation with all its attendant evils. The man who seeks to perpetuate prejudice and class hatred is doing America an ill service. In attempting to promote or to defeat legislation by arraying one class of taxpayers against another, he shows a complete misconception of those principles of equality on which this country was founded."
By 1924, under the VERY able administration of Andrew Mellon as Secretary of the Treasury, the United States has balanced the budget with a small surplus each year and was making great progress at paying the War debt. The high tax rates being charged on high incomes, which had been implemented during the War had remained unchanged, yet collections were rapidly shrinking due to the wealthy using legal tax shelters to avoid taxes, just as they do today. In this brief book, Andrew Mellon laid out the very clear and succinct case for the Flat Tax and elimination of loopholes allowing so much income to be concealed, in spite of the fact that he was one of the wealthiest men of his day and benefited from the shelters himself. He has facts and figures from the three previous year's receipts to demonstrate the validity of his argument that high taxes drive capitol OUT of the marketplace and has an extremely adverse trickle down effect to the lowest level earners. Absolutely EVERYTHING he writes could be applied to modern day, except for the part about, in 1924 they continuously slashed and reduced the size of government to keep the budget in line. It is a book EVERY American should read to understand how very "off the rails" we've gone fiscally.
But he also said this in one of the opening paragraphs that was as prescient as it gets: "I have never viewed taxation as a means of rewarding one class of taxpayers or punishing another. If such a point of view ever controls our public policy, the traditions of freedom, justice and equality of opportunity, which are the distinguishing characteristics of our American civilization, will have disappeared and in their place we shall have class legislation with all its attendant evils. The man who seeks to perpetuate prejudice and class hatred is doing America an ill service. In attempting to promote or to defeat legislation by arraying one class of taxpayers against another, he shows a complete misconception of those principles of equality on which this country was founded."
June 25, 2022
Andrew Mellon, was the Treasury Secretary of the United States in the in the inter-war years before the Great Depression. He was also a leading industrialist of the day. Mellon reduced the rates of income tax which had reached exorbitant levels during the war years. He also retired most of the public debt which the United States had incurred to pursue its war efforts. The small book summarises his ideas about taxation.
Excessive rates of tax will not yield more revenue, rather it will reduce the incentive available for business to invest more and produce more wealth. In the long-run high rates of tax can harm rather than boost the economy. Taxation is a means of raising revenues for the state, not for pursuing ideals like equality.
Here are some quotations from the book that I found interesting.
“Any man of energy and initiative in this country can get what he wants out of life . But when that initiative is crippled by legislation or by a tax system which denies him the right to receive a reasonable share of his earnings , then he will no longer exert himself and the country will be deprived of the energy on which its continued greatness depends.”
“History of taxation shows that taxes which are inherently excessive are not paid . The high rates inevitably put pressure upon the taxpayer to withdraw his capital from productive business and invest it in tax - exempt securities or to find other lawful methods of avoiding the realisation of taxable income.”
“High rates of taxation do not necessarily mean large revenue to the Government, more revenue may often be obtained by lower rates.”
“Government is just a business, and can and should be ran on business principles.”
“High taxation, even if levied upon an economic basis , affects the prosperity of the country, because in its ultimate analysis the burden of all taxes rests only in part upon the individual or property taxed . It is largely borne by the ultimate consumer.”
“High taxation means a high price level and high cost of living . A reduction in taxes, therefore, results not only in an immediate saving to the individual or property directly affected, but an ultimate saving to all people in the country . It can safely be said , that a reduction in the income.”
"One of the foundations of our American civilization is equality of opportunity , which presupposes the right of each man to enjoy the fruits of his labor after contributing his fair share to the support of the Government.”
"The United States is no mere happy accident .What we have has been achieved by courage and hard work.The spirit of business adventure has built up in this country a civilization which offers unprecedented rewards to any man who is willing to work. But where the Government takes away an unreasonable share of his earnings, the incentive to work is no longer there and a slackening of effort is the result.”
The ideas of Mellon, anticipates the views of later economists like Arthur Laeffer (of the Laeffer curve, fame). However influential economists like Thomas Picketty now advocate very high marginal rates of income tax. Andrew Mellon’s little book is worth another look.
Excessive rates of tax will not yield more revenue, rather it will reduce the incentive available for business to invest more and produce more wealth. In the long-run high rates of tax can harm rather than boost the economy. Taxation is a means of raising revenues for the state, not for pursuing ideals like equality.
Here are some quotations from the book that I found interesting.
“Any man of energy and initiative in this country can get what he wants out of life . But when that initiative is crippled by legislation or by a tax system which denies him the right to receive a reasonable share of his earnings , then he will no longer exert himself and the country will be deprived of the energy on which its continued greatness depends.”
“History of taxation shows that taxes which are inherently excessive are not paid . The high rates inevitably put pressure upon the taxpayer to withdraw his capital from productive business and invest it in tax - exempt securities or to find other lawful methods of avoiding the realisation of taxable income.”
“High rates of taxation do not necessarily mean large revenue to the Government, more revenue may often be obtained by lower rates.”
“Government is just a business, and can and should be ran on business principles.”
“High taxation, even if levied upon an economic basis , affects the prosperity of the country, because in its ultimate analysis the burden of all taxes rests only in part upon the individual or property taxed . It is largely borne by the ultimate consumer.”
“High taxation means a high price level and high cost of living . A reduction in taxes, therefore, results not only in an immediate saving to the individual or property directly affected, but an ultimate saving to all people in the country . It can safely be said , that a reduction in the income.”
"One of the foundations of our American civilization is equality of opportunity , which presupposes the right of each man to enjoy the fruits of his labor after contributing his fair share to the support of the Government.”
"The United States is no mere happy accident .What we have has been achieved by courage and hard work.The spirit of business adventure has built up in this country a civilization which offers unprecedented rewards to any man who is willing to work. But where the Government takes away an unreasonable share of his earnings, the incentive to work is no longer there and a slackening of effort is the result.”
The ideas of Mellon, anticipates the views of later economists like Arthur Laeffer (of the Laeffer curve, fame). However influential economists like Thomas Picketty now advocate very high marginal rates of income tax. Andrew Mellon’s little book is worth another look.
September 7, 2012
A very well written and concise presentation of how to address tax policy that could be translated into any time in history and regrettably one in which we continue to ignore to our detriment.
February 22, 2016
Great look into Andrew Mellon's thoughts about the Coolidge-Mellon plan of reduced tax rates.
Displaying 1 - 8 of 8 reviews