Milford chronicle., 1930-03-14
LARGE INCREASE IN
DELAWARE INCOME
TAX REVENUE
Continued from Page y

system, Nhile the remaining fifteer
per cent contribute by tax on theil
incomes sixty per cent of the entire
annual school maintenance cost.
"The injustice of this situation
must appeal to those who have been
relieved of their taxes. Eventually
the burden should be appOrtioned
more equitably by extending the in
come tax to include greater num-
Der or by levying capitatiOn tax as
a matter of convenience.
"In addition to the injustice OF
tax exemption for eighty-tive per
cent of the residents of the State, is
the danger of reduction in revenue
through failure to discover all tax
sbles. A capitation tax would furnish
a list from which all income tax
payers could be selected. One-third
Of the Per capita rate paid in some
of the townships in adjoining States
would be quite sufficient.
"The corporation invested capital
tax, formerly imposed upon corpor-
ations having more than fifty per
cent of their capital invested in Del
aware, was abolished by the last
General Assembly. This brings to-
gether all corporations under one
tax law; it will prove wise step In
the simplifcatipn of corporation
burdens and will tend to increase
the popularity of the Delaware law
lfor those who plan to incorporate
their affairs.
THE importance of continuing
0thirty-year record of wise corpora
tion laws in Delaware is brought out
by the fact that the State income de-
rived from this source represents a
live per cent return on $1OO,OOO,OOO.
Looked at in another way, THIS
income is equal to tax of 81 per
s1OO on all real estate and improve
ments now assessed in the State OF
Delaware.
1.-THE State has made much prog
tess in the development of the pres
ent system of taxation from which
This very substantial and satisfac-
kOry revenue flows. To continue this
flow and to secure the increase de-
handed by continually enlarged
population is a study that should oc-
cupy much time and thought. wei
cannot afford to rest upon our
achieved success in expectation thaC
Gt will continue without effort from
us. The State must offer justice and
increasingly good service in order
to maintain its position"
Mr.. du Pont makes no recommen-
iatiUns in iTis-TepCIt stating that as
1.-THE next legislature will not meet
hlntil next January, he will defer
making recommendations in regard
Ito changes in the tax law.
He sets forth in his report, print
ed in attractive booklet form, that
during the four years of 1925-1929'
the first four years of his service as
tax commissioner, citizens of Dela-
ware have been relieved of Sl,126,-
600 in taxes for school purposes.
The citizens have been relieved
from paying 100000 in filing ices,
S7S2. 900 in real estate taxes, $3OO,OOO
in corporation invested capital tax
Citizens saved $394,OOO in reduc-
tions in income tax by allowances
the State allowing deduction OF Fed
eral income tax, deduction OF con-
tributions for charitable, religious
and educational purposes and ex-
emption for parents or others sup
porting dependent minor children
and other incapable of providing
their own support.
No new tax has been levied 10
take the place of these educatloAs
which have been Offset by increased
income from the income tax and
corporation franchise tax without
advance in the tax rate.
In outlining revenue require
ments Mr.. du POnt says:
"The operation and maintenance
of the public schools of the state
has required an annual expenditure
of $3,500,000. Four million dollars
annually will probably be needed. {
(Fiscal years beginning July l. 1881
and July 1, 1922"
This $4,O00,0O0 may be raised ne
said. as follows: franchise taxes, {
81, $780, 900; income from school tund' I
$50, 900 and income tax, $1,44O,OOO'
The current income tax received
last year on income for 1928 pro-
duced s2,1OS,O04.84 he says, but adds
that this will be reduced through
allowance of deduction for Federal {
income tax, contributions and ex-
emptions for dependents by about {
100000.
"In addition to the reduction by Q
the above items" the report contln- a
ues, "the recent panic in the stock i
market may cause further reduc- i
tion in income, but until the enecC S
is known no definite plan of pro-
2edure can be recommended.
However, it now seems fairly
certain that the item, net capital
gains, which accounted for about 10
Der cent of al taxable income of the
year 1928 will be much reduced af- p
.er the year 1929. =, S
Income from this source Will
continue to fluctuate widely and N
should not be depended upon as an y
tenn of current revenue for the a
State. Probably the abolishment OF u
he tax on capital gains Will be rec y
,mmended next year if revenue from -
,ther sources proves sufficient. .
Mr.. du Points resume of his tirst II
our-year term in Office shows that w
,etween November 1, 1925, and Oc- W
ober 81, of last year his Office col .. -
ected $14,62S, ,249.9S in cash. TINS =, q,
ooney was received from the fol- u
owing sources: n,
Filing fees, $66S, ,69OS1; income y
axes, $6,S71, ,624.51;> corporation in q,
ested capital taxes, $1,14l,979.S1; h,
ranchise taxes, $6,27S'lz1'4z; pena d.
les only, $159,656.77; income taxes gl
nd penalties prior to 1871, SSoo;oV' cISo is
interest on bank balances, lz,Io4.Lo' to
nd refund of wages TO State 4Ie"' in