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Avoiding Quote by Andrew Mellon

“The 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 realization of…” quote by Andrew Mellon
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“The 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 realization of taxable income. The result is that the sources of taxation are drying up; wealth is failing to carry its share of the tax burden; and capital is being diverted into channels which yield neither revenue to the Government nor profit to the people.”

Andrew Mellon

About This Quote

Source Speech: Public Policy Remarks, 1930s, United States

Excessive tax rates drive capital away from productive uses, reducing revenue and overall wealth.

In simple terms: High taxes push money into tax shelters, hurting government income.

Key Takeaway

Avoid over‑taxation to keep capital productive.

Themes

taxation economics government policy wealth distribution

Mood

critical analytical

Type

policy economic

When to use this quote

  • business investment
  • government budgeting
  • wealth management

Key Concepts

tax avoidance capital flight public finance incentives

Questions to Reflect On

  • How can tax policy encourage investment while ensuring fairness?
  • What alternatives exist to prevent capital flight?
A Different Perspective

Tax rates must balance revenue needs with economic incentives.

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