Andrew Mellons financial plan

Question

Describe Andrew Mellon’s financial plan.

Answer 1

Andrew Mellon wanted to reduce national debt, slash government spending, and cut income taxes of all section of societyparticularly the very rich people. He forced other cabinet members to reduce their departments’ expenditure. The cancellation of naval construction got huge savings. The budget reduction enabled him to cut income taxes sharply for individuals with annual incomes larger than $60,000 and corporations with annual profits topping $60,000. He increased taxes on import duties. The costs of postal services were increased. The excise tax was raised and the Congress imposed a new tax on new automobiles applicable to all consumers.