What did the Mellon plan do?
The central tenet of Mellon’s tax plan was a reduction of the surtax, a progressive tax that affected only high-income earners. Mellon argued that such a reduction would minimize tax avoidance and would not affect federal revenue because it would lead to greater economic growth.
What was the purpose of the Mellon plan quizlet?
He bought into his office the Mellon Plan which had four main points: Cut the top income tax rate from 77 to 25 percent, cut taxes on low incomes, reduce federal estate tax, and efficiency in the government. Created in 1921 to assist the President in preparing estimates for annual expenditures and receipts.
Who was Andrew Mellon and what did he do?
Andrew Mellon, in full Andrew William Mellon, (born March 24, 1855, Pittsburgh, Pennsylvania, U.S.—died August 26, 1937, Southampton, New York), American financier, philanthropist, and secretary of the treasury (1921–32) who reformed the tax structure of the U.S. government in the 1920s.
Why did Andrew Mellon reduce federal income tax?
Andrew Mellon worked to reduce federal income taxes in order to have businesses and consumers spend more money, growing the economy, resulting in higher income with more money for the government to take.
What did the Revenue Act of 1924 do?
The United States Revenue Act of 1924 (43 Stat. 253) (June 2, 1924), also known as the Mellon tax bill cut federal tax rates and established the U.S. Board of Tax Appeals, which was later renamed the United States Tax Court in 1942. The bill was named after U.S. Secretary of the Treasury Andrew Mellon.
What was the purpose of the Revenue Acts of 1921 1924 1926?
The United States Revenue Act of 1926, 44 Stat. 9, reduced inheritance and personal income taxes, cancelled many excise imposts, eliminated the gift tax and ended public access to federal income tax returns. Passed by the 69th Congress, it was signed into law by President Calvin Coolidge.
What economic policy did the Secretary of the Treasury Andrew Mellon favor?
Mellon sought to increase revenue by lowering tax rates in the hopes of both stimulating economic activity as well as increasing overall tax revenue by encouraging more people to actually pay their taxes. His plan cut taxes across the board and was enacted by Congress in the Revenue Acts of 1921, 1924, and 1926.
What is the meaning of supply side economics?
supply-side economics, Theory that focuses on influencing the supply of labour and goods, using tax cuts and benefit cuts as incentives to work and produce goods. It was expounded by the U.S. economist Arthur Laffer (b. 1940) and implemented by Pres. Ronald Reagan in the 1980s.
What impact did Andrew Mellon have on the world?
Mellon’s financial backing led to the creation of the Aluminum Company of America and the Gulf Oil Company. He also helped found the Union Steel company, which eventually merged with United States Steel Corporation. In 1889, Mellon helped organize the Union Trust Company and Union Savings Bank of Pittsburgh.
What did Andrew Mellon do with his money?
Mellon was an avid collector of art and in 1937 he donated $10 million to construct the National Gallery of Art in Washington, DC He also founded the Mellon Institute of Industrial Research with his brother in 1913, which later became Carnegie Mellon University. Mellon died in 1937.