The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1930-08-09
TEN MILLION
INCOME TAX
BILL DRAFTED
Evans and Cause Prepare
Measure to Be Given
1881 Legislature.


tvs representative in the last ses-
sion of the state legislature, assist
ed by Fred c. Cause. Indianapolis
attorney and former member Of the
state supreme bench.
The bill. modelled upon the Geor-
cia state income tax law. Evans and
Cause believe. to be constitutional,
and would bring tax relief now
sought. without the necessity OF
constitutional convention TO change
the state Constitution.
The Georgia supreme court re-
Gently ruled that its new income tax
law was constitutional, and Evans
points out that the Constitution Of
Indiana is quite similar to that OF
Georgia.
Much TaIk-N0 Acting
Evans declares that for a number
of years the tax question in Indiana
has been "whitewashed" by state
legislators. and that it is high time
that the state is getting down TO
business on the question at hand.
For many years in Indiana we
have heard talk of an income tax,
most of which came from httle
groups trying to change or re-Wrlte
the Constitution of Indiana, but IN
ali that time not a bill was intro,
duced on income tax. Only resolu-
tions to change the Constitution SO
We could have a legal income TAX,
was introduced. I have always
charged. and I charge now, that
those proponents were not sincere
on the question Of income tax, ana
were only using it as leverage 10
bring about change in the Con-
ktitution." he said.
The Evans bill. according TO It's
author. would require but four addi-
tional state employees to handle the
additional sIO,O00,000 in taxes to be
derived.
Similar to Federal Law
,The state income tax bill would
operate quite similar to the federal
income tax laws, but at rate OF
about one-ffth of the federal in
come tax rate.
The state income tax returns
would be made at the same time,
and in the same manner, as the
federal income tax returns. They
would be on duplicate blanks, which
furnish the same information as IS
contained in the federal income tax
returns.
The returns would be made to
the state board of tax commission
ers.
However. to the amount aScer-
tanned under the laws OF the United
States, as the net income taxable
bv the United States, there shall be
added in the returns to the state,
the gross amount of any salary re-
ceived by the taxpayer during the
year. or accrued to him during that
period as a public official or en-
ploye Of the state, OF of any county,
municipal corporation. or other po-
litical division of the state, and the
net amount of any fees, perquisite
or other emolumentS, from these
sources. paid to him during the said
period for official compensation
Employees Liable
From the amount so aScertained
as the taxable net income. shall be
deducted any salary paid to the tax
payer by the United States, or
arcured to him from the same source
as an official salary for any service
rendered by him to the United
States. and any and all interest paid
to,him on any bond or bonds of the
United States.
ANY person, firm or corporation
who makes no income tax return to
the United States because of having
no sufficient income taxable by the
United States to call for such return
under laws of the United States, but
who would have sufficient income if
his salary, fees or perquiSites from
the state or subdivision thereof were
taxable by the United States, shall
be, liable and is required to make
to the state of Indiana an original
return on the same or similar form
as would be used in making
duplicate return as required in
section . of the bill. indicating
whether or not the same is an
original return.
Under. the provisions Of the bill
In any case where a nonresident
corporation. having an Office and
doing business in this state makes
an income tax return to some other
state, such corporation shall make
an original return to the Board OF
Tax Commissioners of Indiana, con-
fined to its business done in this
STATE
exemption May Be Claimed
The bill further provides that any
taxpayer, feeling he has just cause
for exemption of any part. of his
income from taxation, may make.
claim for exemption, to the tax
board, at the time of filing his re-
turn. A tribunal. to hear these
claims. would be created consisting
OF the attorney general. auditor OF
state and secretary Of state, TO be
known as the board of income tax
review.
The taxpayer. for himself. or the
board os tax commissioners for the
state. shall, if dissatisfied with the
finding of the board of income tax
review, have recourse in an appeal
TO the circuit court of the county
where the taxpayer resides or has
his place of business within ten days
from the date Of receiving notice
OF said finding, and no bond shall
be required as a condition thereof.
Any person, firm or corporation
who shall fail or refuse to make the
state income tax returns. would be.
liable to a penalty to 10 per cent OF
the liability of such taxpayer as
fixed by the return. Should any tax
payer fraudulently or with any pur-
pose to conceal his liability under
this act, fail or refuse TO make
return, or make a false or fraudu-
lent return, to escape liability under
this act. shall be deemed guilty of
q misdemeanor and fined in any
sum not more than 81, 900, to which
may be added Imprisonment in the
county Jail. not to exceed six
months. the proposed law also pro-