The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1931-02-04
TAX MEASURE
TO Be FILED
DURING week
House Finally Agrees on
Bill Designed to Ease
Property Load.
INCOMES TO FACE LEVY
lntanglbIeS Also Expected
to Provide Portion OF
State Revenue.

AAuldAs hOuSS OF representatives
expects to wheel on to the floor of
the house Thursday the infant tax
plan counted upon to grow up in
four weeks to become the support of
state government.
The hush of expectancy" hung
over the ways and means commit
tee maternity ward today where
mldwlveS and attendants at the
birth include thirteen nervous ways
and means members, nine senate
finance committeeman. the senator
who is chairman of the Governors
tax survey committee, tax expert
and economist. political leaders and
twelve joint tax committeeman.
Income taxes on individuals and
corporations, counted upon to raise
annually about half the $15.OOO.OoO
now provided by the state property
levy, are qualifications expected of
the infant
Democrats trust the youngster
will grow up to look like its father
the income tax pledge of the
Democratic state '>1-tform. Repuh-
licans want it to rase'-Nle Repub-
llcan insistence for relief from bur-
densome property taxes. Sometimes
they agree 1t may look like both.
Two Bills Chosen
Decision to settle upon House
Bills 271 and 233, drafted by the
legislative reference bureau for the
tax survey commission which
worked on tax revision for more
than a year, was reached at
round table meeting of the joint
tax committee of both houses late
Tuesday.
Unaware that r. Earl Peters,
Democratic state chairman, and
Paul V. McNutt, touted as the 1882
Democratic gubernatorial nominee,
had told the ways and means COM
mittee Monday night that these two
bills were satisfactory as start
ing point" Representative DELPHI l..
NcKesson, majority floor leader.
opened the meeting with a gesture
toward stamping the income tax
effort with the Democratic party
label.
There's a bill being drafted along
lines of the Georgia law" he said.
and 1 think we ought to wait
on it."
He did not know Chairman Peters
had told ways and means twenty
four hours before, Colonel McNutt
has given several days close con-
sideration to the Georgia law"
McKesson's position indicated
successful "McNutt income tax act"
might not be harmful to the guber-
material aspirant in the fall of 1882,
Lieutenant-G Governor Edgar D.
Bush, leading the Republican tax
relief drive, and Speaker Walter
Myers, watching to see that Repub-
leans do not steal all the thunder,
agreed something's got to be
started at once"
Delay Causing Complaints
Chairman Hardin S. Linke Dem,
Bartholomew of ways and means
said: people back home are begin
ming to complain at the delay"
Senator j. Clyde Hoffman (Rep.,
Marion), head of the tax survey
committee, stressed the need for q
comprehensive plan for enough new
revenue measures to supplant the
present state property levy, plus
measures to reduce local expendi-
lures.
This finally was agreed to be the
sense" of the joint committee.
Then the patient Professor George
w. Starr of the bureau of business
research of Indiana university, was
asked again to make the explana-
tions of tax research he has made
throughout the country. He has
followed committee after committee
through scattered hearings, trying
to find just who is framing the
new tax law. But the same people
never seem to be there twice.
His remark that an act to tax
intangibles at perhaps 25 per cent
Of their face value would be re-
quired as a companion to the in
come tax bill to discourage seques-.
tering, brought bolt from Bush.
Opposes % Per Cent Levy
"If a man will steal a dollar, he'll
steal a quarter" the Lieutenant
Governor declared with a smack CT
his fist. "TThe whole purpose Of
intangible bills is to get rid of the
tax ferret, and that would be a. mis-
take"
Ways and Means Chairman Linke
had left the room with his sheaf
of bills for another committee meet
ing. Senator Lee J. HartzeIl (Allen
and Noble), Republican majority
leader, was on the point of doing
IN his chair-hiS feet outstretched
on another.
What would happen if we passed
a law here to tax irtangible5 at their
full face valued" Hartzell asked.
Informed such a law has been
on the books for years, the senator
seemed impatient for adjournment.
Talking to Myers, while others
chatted one to another, Bush did
not hear Senator Hoffman point
out that his estimate of the rev.
enue raising power Of the income
tax bills had been made on the
assumption an Intangible tax bill
would be passed also.
We've got to do something: we've
got to get action" Myers enjoined
them.
The action is due for Thursday
or Friday at latest with the income
measures, bearing committee amend
ments, being brought to the floor
Of the house, recommended for
passage.