The Indianapolis times., 1932-05-26
LUXURY. Y.TAXES
RESTORED TO
SENATE BILL
Sales levleS Are Voted On
Variety of Articles in
Lollipop Revolt.
TIRE RATES UNDER FIRE
0hiOanS Lash at Burden
Placed by Committee on
Rubber Products.

I " hDflllfAJ ON. May 20 nc
senate put so-called luxury sales
taxes" back in the billion dollar rev.
enue bill today. and, in the midst of
a 'lollipop revolution. quickly voted
Il levies on a variety of articles, from
matches TO mechanical refrigerators.
The senate finance committee,
meeting an hour before the senate
4 convened, restored the luxury levies.
They were acted upon speedily when
senators gathered to continue con-
/ siderstion Of the new tax measure.
Senator James Couzens rep,
Michl raised the issue of a ''lolli-
I pop rebellion when he complained
That the finance committee had re-
stored candy 10 the tax schedules.
and would take 2 per cent on every
clilos lollipopr while leaving silver
on the free list.
With the word "lollipips' echoing
IN the senate chamber, the senate
voted 43 to % TO make sterling sill
yer subject to the restored 10 per
cent sales tax on jewelry.
$50, 900 in New Revenue
Then the senate restored the 10
I per cent sales tax on sporting goods.
T firearms and cameras, calculated 70
yield 100000. Aerial cameras were
exempted.
The candy tax was voted to raise
( S5,000.000, and the jewelry tax on
articles costing more than IS is
/ estimated to realize S5,000.00O.
Senator Pat Harrison Dem.
Miss) calculated that the 500 .0OO. .00O
to S70.000.000. to be had from lux
ury sales tax retintrcduced into the
bill by the committee and immedi-
ately submitted to the senate. would
not be sufficient TO make up for
losses expected in the reduction of
other taxes.
The automobile and rubber taxes
already have been reduced by $685.
100000.
Leaders expect the admissions tax
exemption to be raised from 10 cents
to 25 or 80 cents. with a loss oS ap-
proximately s5sOOO,OOO.
Restore Soft Drirk Schedule
The aggregate prospective loss is
S89 O00. 900.
The 2 per cent tax on chewing
gum again was upheld
The senate then restored the en-
tire soft drink schedule with
changes which left it as follows:
Cereal beverages. Ik cents per
gallon; infermented grape Juice, 5
cents per gallon: other fruit juices.
2 cents per gallon; still drinks, 2
cents per gallon: mineral waters,
2 cents per gallon; fountain syrups,
s cents per gallon.
The senate replaced the boat tax
adopted Wednesday night with a
use tax on pleasure boats. graduated
from $40 on those between twenty
eight and fifty feet to 5000 on those
over 200 feet.
Craft imported from abroad
would be subject TO a double tax.
The rubber tax of 81 cents
pound on tires and 4 cents a pound
on tubes proved a snag to speedy
action.
Senator Robert J. Bulkley Dem,
o. asked that those articles be in
cluded under the general heading
Of automobile accessories, to obtain
the benefit Of refunds provided by
that section on articles held beyond
Aug. /. 1884.
Fight Heavy Tire Taxes
The expected yield of the rubber
tax is s33,O0O.0O0.
Bulkley argued that the tire tax
was four times as onerous as that
Of batteries or spark plugs. and that
on tubes seven times as heavy. He
asked the committee TO give the
rubber industry no more than an
equal burden.
Senator Simeon d. Fess CRep.. o.
Joined his colleague from the great
est tire and tube manufacturing
state in bolting the committee on
the rubber taxes.
1T isn't right and it isn't fair"
Fess said.
The senate rebellion against
elimination Of the luxury taxes"
fiared up on the floor Wednesday
night when the committee amend
ment striking out the 10 per cent
tax on boats was reached. Senator
Clarence c. Dill (Dem.. WashD
succeeded in having it reinserted.
Stuck on Chewing Gum
Chewing gum was next on the list.
taxed at 8 per cent under the COM
promise plan recommended by the
treasury. Minority Leader Joseph
T. Robinson asked that il BE- re-
duced to 2. per cent, and Senator
James Byrnes Dem, s. c. moved
il be eliminated.
Byrnes argued that the tax, would
result in the manufacturer taxing q
pinch Of gum out of the package
Of each child in America and
asked the senate why it singled out
automobiles and gum when IL de-
clined 70 tax greater luxuries like
jewelry, furs, cosmetics and re-
frigerators.
Other senators joined the fight
and faced with the threat Of an ex-
else tax jam, the committee deter
mined to meet this morning to re-
x-s1t.- ff-c an4fv. -0t-~-..r.