This report sets forth the principal arguments advanced both for and against the Mellon Tax reduction plan. For purposes of reference a copy of the Mellon letter is attached.
The generally accepted theory of taxation is this: A levy is laid upon the property or earnings of persons living in and under the protection of the state, for the purpose of maintenance by the state of such institutions as render public service under the law.
The first consideration of a governing body, in the making of taxation laws, is to obtain revenues for the maintenance of the government and its various activities. The second consideration which, theoretically at least, is as important as the first, is to procure such revenues with the least possible burden to the tax payers, and to keep the cost of government and government service as low as possible.