The Birmingham age-herald., 1923-09-03
BILL BEING DRAWN ID PROVIDE FUNDS TO AVERT DEF F|C|T.
Revenue Sources To Provide Million Dollars Annually
 Must Be Found
STATE CAPITAL BUREAU l
 THE AGE-HERALD } Afnntlomery. Ala, Sept, Q

Montgomery. Ala, Sept. J
 Faced by the necessity of obtain ing additional revenue or. permitting the state to entail an annual deficit during the next four years, the ad- ministration will propose a sales tax on tobacco and other luxuries. ac cording to information Tn legisla- tive circles today. The bill probably will be itroduced during the legis- lative week which will begin Tues day afternoon.
 It is known that the bill is being drawn and that administration forces believe it is the surest method of obtaining sufficient revenue for the support of the states activities dur ing the next quadrennium. No infor- nation has been obtained regarding the proposed tax or what articles will be involved. The best information is that the measure will be framed somewhat after the South Carolina law which levies a tax on tobacco and kindred commodities, candy, etc.
 The budget prepared by the budget commission anticipates an annual de- ficit of little more than one million dollars figuring in this amount the to al due the highway fund by the general fund. Governor Brandon has said that state expenses cannot go beyond state revenHe during his ad- ministration. The deficit September 30 will be about $2700,o00. accord in to the budget report.
 O o O
 Million Annually Necessary.
 This deficit coupled with the es- timated deficit, during the next four yearst and the governors declaration that outgo must not exceed income means that the state must find sources of revenue which will pro- duce about one million dollars year more than the budget commission has estimated that present taxing laws will produce.
 The claim is that between $500, 900 and $5C0,000 will be obtained from the Long measure increasing the cor poration franchise tax from 50 cents to $1 a thousand. Ther efore. ;t least $500,000 and probably more must be obtained from other sources,
 The luxury tax in South Caro- lima which became effective this year will furnish that state a large amount of revenue, according to re- ports. It is estimated that the im- position of similar tax in Alabama and the increaseI franchise tax will bring in enough revenue to cover the anticipated deficit
 Even with this increase in revenue funds will not be provided fer the expansion of the educational system. It appears to be certain now that the educational program must de- pend upon the submission by the leg fslature and the ratification by the voters of constitutional amend ment imposing an educationa tax of mills Cn all property. This amend ment will come before the house of repre- esentatives for action during the week. Governor Brandon has staked all on it. He told conferees durlng the week that the success of his administration depends upon the success of the 4-mill tax. He fur ther said that if the 4-mill tax fails he will he willing to admit that his administration of state affairs has failed. This statement has come from an authoritative Source.
 O Q sOa @ A Faces Defeat In House.
 Therefore, it may be expected that the entire force of the administration will be used in the furtherance of the olll submitting the amendment. At this time the general admission Is that miracle only will send the bin through the house. Sixty-four af- 1irmative votes must be cast For many days opponents of the measure have sought to perfect their organi- zation. It is quite well understood now that the opposition has enough votes to defeat the bill
 But even though there be enough votes now to defeat it, this does not mean the measure is dead. Time and asain during the present session of the legislature forces have been banded together in opposition to stipulated legislation and have met and entered into an agreement to vote together. But something hap pened and when the time came to vote. the bills went through
 bloc succeeded only in one in- stance. The organization opposed to the general revenue bill did force the administration to recede from its plan of retaining one-half of the gasoline tax in the general fund. The administrati agreed to give the counties the entire tax and when this agreement was made the oppo- sltion assented to the passage of the revenue bill
 Other efforts were made tC prevent the passage of bills, but they failed. Therefore, 1t cannot be said that these opposed to the submission of the 4-mill tax amendment will win their fight on the floor of the house, even though they now control suf- flCleQt NlteS tO nraVeDt cthr1i Sin,