The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1929-03-09
TAX PROBLEM
TANGLE STILL
IS UNSOLv we'd
Appears Legislature Will Be
Forced to Hike Levy
From % to SO Cents.
STATE is BANKRUPT
Jackson Administration Is
! Blamed for Money
Question.

With but the rest of today and
Monday left in which to act the
state legislature today still was try
ing to find a way out of the states
financial moraSs without increasing
the tax levy from % to 33 cents. It
appeared more than likely to legisla-
tive observers that the solons In the
end would increase the levy.
The taxation problem was the
5ast major item on the general as
Sembly'S business, the primary,
armory, gasoline tax, city manager
and Indianapolis gas bill fights be-
ing out of the way. The session
ends at midnight Monday.
The so-called chain store licensing
bill, which really provides for
licensing all stores and filling sta
tions in the state, failed of a con-
Btitutional majority in the senate
Friday afternoon. Proponents of
the measure planned another at
tempt at passage today.
jackson Is Blamed
Meanwhile, the corporations tax
BILL companion measure approved
by a joint committee appointed to
try and avert the 10-cent tax in
crease, remained on committee re-
port without further action in the
house.
Another conference committee was
trying today to iron out the difficult
ties arising over senate increases in
the regular budget bill. The COM
mittee was to see Governor Harry
C. Leslie.
When the store licensing bill was
called on third reading in the senate
Friday all agreed that the situation
was dire. Senator Alonzo H. Lind
ley, Kingman, from the Republic
an side, and Senator Samuel Benz,
English, from the Democratic, laid
the presents financial stress OF the
state directly at the door OF the
Jackson administration.
Policy OF Governor Ed Jackson
in keeping the tax rate at % cents
is given as the reason for the more
than $5,000,000 increase in the pres
ent budget. This economy was
pointed to with great pride by all
G.. 0. P. stump speakers during the
campaign last fall.
Says State Is Bankrupt
Jackson himself termed 1t the
greatest record ever made by a Gov
ernor in his farewell address to the
present legislature.
Citing the famed economist, John
Stewart Mill, Senator Lindley adj
mitted in pleading for the store Ii
cense bill that IAN excise tax Is the
last resort of a bankrupt govern
ment"
Our state is bankrupt and we
might as well admit it," he con-
tinued. I'VE are in a dire condition
and 1t is only because of this that
I beg support for this measure"
Senator Benz took advantage of
the opportunity to harrass the ma
jority members.
II feel sorry for the Republican
party" he told them Bad as this
bill is I'm ready TO vote for it to
administration has busted us COM
pletely.
Bill Constitutional
II recall the time when Governor
Ralston announced that the last of
the state debts had been paid. Now
look at our financial condition. It's
too bad that Governor Jackson
wasn't as good a Governor as he
was horse trader. He came down
into my county and bought horse
for $195 and then he announced
some years later that he had sold
it to D. c. Stephenson for $2,500."
In opening and closing debate On
the bill Senator Arthur B. Stonex,
Goshen, emphasized that the COM
mittee, of which he was chairman,
had sound advice that the bill was
constitutional.
He pointed out that the licensing
measure was introduced in the
house early in the session and that
it was thoroughly studied before
passage there.
This is no last minute, hurried
action, he asserted.
Leisure for Farmers?
He predicted that it will take one
or two cents from the tax levy.
Senators william A. Hodges, Gary,
and French Clements, Evansville,
urged against placing tax on
necessities. after turning down tax
on Injuries.
Senator John L. Niblack. Indian
apolis, talked against passage on the
grounds that such licensing with
out regulation was un-American in
principle and contrary to flnda-
mental freedom.
Il think that if this bill is passed
we should require a license from the
farmers next session." he said.
SNOW SETS RECORD