The times-news. [volume] (Hendersonville, N.C.) 1927-current, 1933-01-19
TAX.
BILL IS LIKELY.
Revenue Measure Expect
ed to Affect Retailers
and Manufacturers
Rv ]. c. BASKERVILLE
Timps-Ncws Bureau
Sir Walter Hotel

RALEIGH, Jan. ia sales
tax of some sort, probably a COM
bination general gross sales tax
that will touch manufacturers as
well as retailers and wholesaler
but at much lower rates than
would be necessary if the tax
were imposed on either group
alone, is regarded as being IN
creasingly likely to receive more
and more consideration before
the general assembly adjourns.
This is especially true since Gov.
]. C. B. Ehringhaus came out SO
emphatically against the diversion
of any funds from the highway
to the general fund, as recon-
mended both by the tax commlsN
sion and the budget commission.
The fact that Governor Ehrlng-
haus also is opposed to the plan
to refnance more than Sl,OOO,OOO
a year in general fund bond ma
TURTLES. as proposed by these two
commissions, as we'll as signifying
opposition to any further horizon
tai salary cuts for state employees,
who have already had their sala-
ries cut from 20 to 40 per cent
indicates that the general assem-
bly, must find at least 50, 1000, 600 d
wear new revenue in addition to
replacing the $3,S50,000 lost from
the repeal of the Is cents prop
erty tax.
In other words, if the assembly
is to follow Governor Ehringhaus,
and refuse to divert $2,000,OO0 a
year from the highway to the gen
eral fund, refuse to refund any
general fund bonds and decline to
cut salaries as much as is recon-
mended and also remove the 10
cents property tax, it must find
at least 100000 in new reve-
nue. and another $4,000,O00 to re-
place the IS cents tax, or a total
of approximately $8,OOO,0OO iE.
all.
1t is agreed that the S4,0o0,O0O
necessary to replace the revenue
lost from the repeal of the Is
cents property tax can probably
be replaced by the steps recon-
mended by both the tax commits
sion and budget commission.
These steps include increasing the
franchise taxes, the income taxes
to the constitutional limit of 6 per
cent and additional increases III
license taxes. But it is also agreed
that even if all these increases
are enacted-and they will have
stiff opposition from many quar-
ters-fully 100000 in addition
al new money must be raised.
Opinion seems to be growing
among many members of both
houses that the only way this ad-
ditional $4,0OO,O0O year of new
revenue can be raised is from
some kind of sales tax. Chair
man R. A. Doughton of the house
finance committee has long been
and still is opposed to any form
of sales tax and pronounces it as
a nefarious form of taxation. Yet |
he admitted the other day that
for the time being some kind of a |
sales tax seems to be almost the
only way out of the present diff
Guilty. Chairman R. Grady Rank
in of the Senate finance commit
tee shrdl hrdlu hrdl hrdl hrdlshrs
tee is not friendly towards q sales
tax and was one of the 81 "im- |
mortals" in the 1881 senate that |
stood out against a sales tax for !
five months. But indications are |
that he is beginning to believe |
that some kind of sales tax is |
almost inevitable.
Senator Hayden Clement Of |
has already offered his |
production tax bill. which is moth
ing more than a sales tax levied |
upon the manufacturers and paid |
by them at the source. The rate
proposed in the Clement bill is
one-half of one per cent on gross
income, and conservative esti-
mates are that it would Weld I
about $7,500,00O a year in reve-
nue.. !
But indications are that the be-
lief is already general that this