The times-news. [volume] (Hendersonville, N.C.) 1927-current, 1933-02-08
ASSEMbLYMEN
PREPARE fer
TAX ON SALES
Many Find Only Way to
Balance Budget Okey
Back Home"
Bv J. c. BASKERVILL
The Times-News Bureau
Sir Walter HOtCl

Sir Walter Hotel
RALEIGH, Feb. S.-The con-
viction that a general sales tax
is the only way enough money
can be found with which to bal
ance the budget and maintain the
schools among the members of the
house and senate here today fol-
lowing their return from a week
end at home with their constltu-
ents. Many of these found that
the "people back home" have viz
tually made up their minds that a
general sales tax will be enacted
and that they might as well
make the best Of it, even though
many of them do not like and do
not want a sales tax.
So the main question the
subcommittee of the joint finance
committee will have to decide is
not whether or not it will write u
sales tax into the revenue bill! 1T
is now writing, but the size and
type of sales tax to be incorporat-
ed into it. The prevailing belief
is, however, that the tax finally
approved will be a sales tax or
gross retail sales of every sort,
from bread and meat to silks, furs
and diamonds. 1t is apparent that
Senator Hayden Clement of Row.
an is going to make an effort 10
get his production tax plan con-
sidered by the subcommittee, with
a levy of from one to two mills on
the gross sales of manufactured
goods in the state. Senator Hins-
dale is also expected to make an
effort to get his luxury tax plan
considered. But so far there seems
to be little or no sentiment for
these other plans, indicating that
most of the members of the as
sembly have already more or less
decided upon the tax on gross re-
tail sales.
Much difference of opinion is
expected to develop over the size
of the sales tax that will be rec
commended, however. There is one
group that wants to impose sales
tax as high as per cent, to yield
as much as $20,000,000 a year
and to use a large portion of the
revenue from this tax TO reduce
present taxes on corporate bust
ness. such as the power COM
panies, railroads, textile mills, to-
bacco companies and other indus
tries. The group opposed to this
procedure, however, points out
that these industries will benefit
from the reduction in ad valorem
taxes that will result from a sales
tax, especially if the state takes
over the eight months school term
and that they thus will not need
reduction in these other taxes.
1t is also maintained that these
big corporations, with the possible
exception of the textile mills and
railroads, are still earning more
than any other class of business
and hence able to continue to pay
the present tax levies. So any eff
fort to relieve the larger c0rpo-
rate interests with revenue de-
rived from a sales tax is going to
meet stiff opposition.
Consequently it is believed that
sales tax of about per cent
will eventually be recommended,
since a 8 per cent tax will provide
about $12,00O,O00, according to
most estimates, although the tax
commission estimates that it will
not produce more than $4,000, 600
a year. This $12,000,000 a year
will be sufficient to provide the
100000 needed to balance the
budget by making up the loss of
the 100000 lost through re-
moving the Is cents property tax
and also leave more than $4,000
900 available for taking over the
eight months school term, which
now seems more and more likely,
There is an increasing sentiment
that if sales. tax il imposed. IL
should be used exclusively for
balancing the budget and for