Question

In the 1920s, Secretary of the Treasury Andrew Mellon succeeded in cutting taxes on: a.corporate profits and personal incomes. b.both eliminating half of the federal debt c.dramatically trimming the federal budget. d.eliminating half of the WWI debt.e.All these answers are correct.

Answer 1

Answer:

a.corporate profits and personal incomes

Explanation:

After being appointed by the then US president, Warren G. Harding, T. Mellon was tasked with reducing the large federal debt accumulated as a result of World War I. Hence, in his bid to achieve the aim, he increased revenue by lowering tax rates so a s to boost the economic activity as well as increasing overall tax revenue by encouraging more people to actually pay their taxes.

His then successfully cut taxes across the board both corporate and personal income tax, which was finally enacted by Congress in the Revenue Acts of 1921, 1924, and 1926.

In turn, the top marginal tax rate fell from 73 percent in 1922 to 24 percent in 1929.

Answer 2

Answer:

All these answers are correct.

Explanation:

Andrew Mellon was a successful business man with interest in sectors ranging from aluminium, steel, coal and to oil. After the first World War, he was appointed as the Secretary of Treasury inorder to assist in the reduction of the federal debts as a result of the war.

Due to the fact that the economy of US was in turmoil, he had to cut taxes across all board inorder to encourage the recovery and growth of the economy and at the same time encouragment of more people to pay tax to the government.

This tax law which he enacted lead to the marginal tax of US to fall from 73%  to 24% which on the long run proved effective on lowering the national debt.