Milford chronicle., 1932-03-25
DUPONT WOULD
RAISE ADULT
TAXFOR SCHOOLS
[COntiHped from First Page]

lieved of this additional burden"
A change in the State law would
be necessary to carry Mr.. dupont S
recommendations into effect, making
it possible for Wilmington to receive
all its operating expenses from the
St2te School Fund in proportion 10
tn enrolment of children in the
public schools.
Mr.. duPonts suggestion is based
upon the results of a study OF the
revenue from the corporation fran
chise taxes. This revenue he finds to
be very dependable, in that it IS not
subject to wide variations from year
to year as is the income tax, and
that the franchise tax tends to in
crease each year, making it q very
desirable source of revenue for
school purposes.
For an instance, the total number
of corporations taxed in 1881 under
the corporation annual franchise
tax was 36,093. an increase of 2.127
or 81 per cent. The net amount col
lected from corporations in the year
ending, October, 1881, was $4,52l,-
1S3.07 or an increase of 1879 per
cent over the net amount collected
for the year ending October, 1880.
The franchise tax tables included in
Mr.. duPOnt's report show a consis-
tant increase each year in the reve-
nue. collected from franchise taxes
since 1922. Some years, however,
have had larger increases over the
previous ones, as 1890 over 1929
when the increase was 6S.6 per cent.
1.-The importance of the tax on
franchises of corporations, organiZ-
ed under Delaware laws. should
again be noted" Mr.. DUPONT states.
"The amount of this tax collected
for the year 1881 shows an increase
of almost - per cent over $780, de-
spite a large decrease in the number
of new companies incorporated. In
vestigation of the income from fran
chise taxes over a period of more |
than 90 years shows an increase |
each year regardless of general |
Tax Due
business conditions and we have |
every reason to believe that the rev.
enue from this source alone will be |
sufficient to pay the operating eX-'
penses of all Of the schools in the !
State. The fact that the revenue |
from this tax is very dependable, in |
that it is not subject to wide varia-
tions from year to year as is the in
come tax and that it tends to in |
crease each year, makes it a very |
desirable source of revenue for |
school purposes. We probably shall
find it necessary to increase our eX-
penditures for operation of schools
each year for some time to come and
if the franchise tax is used entirely
for school purposes it will take care
of this increase and avoid the neces-
sity of looking for new sources Of
revenue"
AS in former years, Mr.. dupont
renews his recommendation that
So capitation tax be instituted in the
State. He points out that of the to-
tai number of taXabies in Delaware,
about $4,000 persons are taxed under
the State income tax law and 10000
exempt from taxation. Since the in
come tax is used for the support of
public schools, in which the exempt
ed persons are far more interested ,
than the taxed Mr.. DUPONT states, Il
more reasonable and fair apnortiOn-
ment should apply. ;;
Mr.. dupont directs the Governors \
attention to the fact that a 50 tax =
amounts to about one-third or one =
half that charged in rural sections =
of adjoining townships in the State a
of Pennsylvania. =,
This tax" Mr.. DUPONT writes, :,
would redistribute the burden pro- =
over the entire adult :,
population whose interest in schools
is a duty surmOuntng the resp0nsi-
Dility of ten per cent of the taXables a
whose contributions now furnish the I
income tax for the State school pro- t
gram" Ii
Total taxes collected by the State r
Tax Department during 1881 repre- 1
sented a IS per cent decrease as C
with the collections of the C
5ear, 1880, Mr.. DUPONT informs Gov 1
arnOr Buck. This decrease, Mr.. Gu /
oont explains, resulted from reduced Il
ncOme tax collections. The general Ii
business decline, which diminished Il
axable incomes for the year 1890 c.
md the SO per cent reduction in o
ates authorized by the General As 81
embly account for the shrinkage.
The taxes collected in 1881 OF
mounted to $5,961, ,316.43, a decrease il
# Is per cent as compared to the m
of 1880. The total number p,
f persons taxed under the Income m
AK Law was 1919, a decrease of IL
,287 or 1871 per cent CT
Mr. DUPONT tells of the effort made ei
" the State tax Office to increase cC
he taxable" list to equal the gov
rnment census for 1890. The latest eC
ensus of the United States shows to
Or Delaware, 1892 citizens or ia
over twenty-one years of &C
Iarch Is Wilmington New Castle
1922 S 215,393.92 S 5S,7G1.13