The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1931-02-20
Senate FIGHT
TO FLARE ON
income TAX
Democrats Are Expected to
Battle Lobby Urging
Corporate Defeat.
G. 0. p. VICTORY IS SEEN
Amendments to Be Drafted
Into Houses Personal
Levy Measure.

Amendments lowering exemptions
TO bring in mos small income tax
payers are expected to be drafted
into the house personal income tax
bill upon completion Of the bills
consideration in the senate commit
tee Of the whole today.
The move is backed by the Re-
publican majority and has some
Democratic support.
A strictly G.. Q. p. move will be
to recommend that the corporate
income tax bill, passed by the house,
be killed.
The personal income tax bills
changes are based OH the Indiana
tax survey commissions recon-
mendations ard will place exemp-
tions ON the smaller scale upon
which they were Based when the
measure was introduced originally
in the house, according to Repub-
lican leaders.
To Be Called deductions"
Present exemptions in the per-
sonal income tax bill are $500 for
single and $500 for married per-
sons. When and if amended, the
bill will be changed to exempt in
comes under $1,000 and $4,000,
respectively, it was announced.
These will not be called exemptions,
but deductions"
Senator Walter S. Chambers
Dem, Hancock. Henry and Mad
ison), minority floor leader, said he
had agreed to the amendments on
the personal income tax.
The Democrats, however, are OK
pected to fight for the corporate
income tax bill, which is being
urged for defeat by one of the out
standing industrial Hobbies in the
history of Hoosier legislatures.
The bill, as passed by the house
and now ready for consideration in
the senate, would levy 3 per cent
income on net corporate revenues.
Hartzcll Prc3'cis Defeat
Senator Lee j. Hartzell CRep.,
Allen and Noble), G. o. P. floor
leader, who presided over the COM
mittee of the whole, confidently
predicted the corporate bills de-
feat
Following conferences by both
parties, the committee Of the whole
convened and the entire morning
spent in reading the income tax bill
which is to be amended by substi-
tuition Of an entirely different meas
ure. Fifteen pages remained to be
read when the senate recessed until
p. m.
HartZel said the reason for read
ing the measure was to show the
galleries that there was nothing to
conceal and that the Democrats had
insisted on it.
Other senate taxation plans being
considered as possible alternatives
TO an income tax or as companion
measures to wipe all state tax from
the property levy, include a plan
Of increased license fees for motor
vehicles which hackers predict will
raise $19,000000 This they say
would leave $4,OOO,00O for local dis
tribution after all state govern
mental expense had been paid.
New Auo Scale Proposed
Another bill with Republican sup
port would take all license fees
from the state highway department
and put them into the general fund.
Favorable reports on both meas
ures were adopted today.
The new schedule of fees pro-
posed for automobile licensing
would be 40 cents per 100 pounds
of weight for all pleasure vehicles,
$40 a seat for motor buses, $25
minimum for all commercial cars
up to $500 pounds in weight. go
cents per 100 pounds from $500 to
5000. 80 cents per 100 pounds from
5000 to 1000, 81 per 100, pounds
from 1000 to 5000, and $3.50 per
100 pounds from 5000 pounds
upward.