The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1931-12-16
BUSINESS SEES TAX PLAN AS PERIL
Mellon Act Would Cost City S3,OOOOOO Annually

IF the Hoover Mellon war tax
Il IS placed into effect, Mr.. and
Mrs. John Citizen of Indianapolis
must pay, and pay-and pay.
In fact, the city's tribute to
Uncle Sam, in the form of addi-
tional taxes on automobiles,
radios, stocks, checks and amuse-
ments may total more than three
million dollars annually, accord
ing to conservative estimates.
The proposed new burden, is
so staggering, as a matter of fact,
that gloom prevails in industrial
circles affected by the proposal.
1t will mean, these leaders as
sert, that Mr.. Public will think
twice before buying commodities
on which the tax is placed.
And the estimated tax revenue
does not include the additional
revenue under the proposed new
income plan, by which Mr.. Citi-
zen may be called on to add still
more millions to the national
treasury.
Nearly one million dollars will
be drawn from the car-buying and
check-writing public alone, it was
estimated. This figure is based on
the volume of exchange and trade
in the last year.
L. G. HENRY, manager of the
II Indianapolis Auto Trade
Association, estimated that about
100000 will be paid in auto sales
taxes, exclusive of the 2l5 per
cent on tires and accessories, as
proposed to congress.
In the fiscal year, 1000 cars
we're sold in the city. If the new
tax rate is passed, the buyer will
pay an additional 5 per cent to
Uncle Sam, the tax ranging from
$40 upward, according to the price
of the car.
Although exact figures Of the
number of checks written annual
ly in the city are not available,
bankers estimate that at least
100000 will be added to the trea-
sury by the proposed 2-cent tax
on checks and drafts.
This tax greatly will impede
the use of checks as medium of
exchange, and will result in more
liberal use of currency, according
to heads of the Indianapolis
clearing house. 1t is estimated
that more than $4,000 checks are
written daily in the city.
NEW tax on stock transfers,
~ increasing the existing
stamp tax l per cent, would yield
from 100000 to 100000, it was
estimated, although city brokers
declined to guess at the additional
revenue.
Proposed tax of 5 cents on tele-
phone calls costing from IA 70 SO
cents, and 10 cents on each mes
sage costing so cents or more
would place an additional cost
of SOL 900 on city patrons, accord
ing to estimates based on public
service commission reports.
Telegram users probably would
not feel the proposed tax, heads
of the Postal Telegraph and Gable
Company indicate. In event the
tax is imposed, rate reductions
probably will be placed in effect, it
was said.
Radio buyers would pay an ad-
ditional $4,000 to Uncle Sam, &C
cording to Theodore Brown, head
of the Indianapolis Electric
League. The estimate is based on
the sales volume of the fiscal
year, of about one and one-half
million dollars.
Theater owners and patrons
will be hard hit, by the proposed
10 per cent tax in each admission
costing more than 10 cents, in the
opinion of local theater heads.
Only vague estimates could be
obtained as to the total additional
revenue. These placed the tax
burden at more than $400,OO0.
NNE theater official stated the
" tax will be too much to put
on the public" and that more
than two hundred theaters in the
state will be forced to close.
The cigaret smoker probably
will not pay the 16 2-3 per cent
tax proposed for tobacco products,
except cigars.
Edward Harris, head of the
Hamilton-Harris Company said
he believes the tax will not affect
the present retail price, and that
the tax will be paid by the manu-
facturer.
Nearly $4,000 would be realized
py taxing of real estate transfers,
another provision in the Hoover
Mellon tax proposal, according to
County Auditor Harry Dunn.
Increased postal rates, provid-
ing a Scent letter postage and
higher rates on other mail, would
cost the city approximately $780,
600, based on an annual postal
revenue of $1,500,000, Postmaster
Robert H. Bryson said.
GR0WNUPS WRITE SANTA