Imperial Valley press., 1933-04-21
PRESENT NEW
PROGRAM FOR
STATE BUDGET
Collapse Of Riley-Stewart Tax
Measure Brings Out lC-Point
Plan As Substitute.
IS FAVORED In ASSEMBLY
Sponsors Assert 1t viii Balance
Budget And Reduce Taxes By
$12O,0OO,OO0.
BY THOMAS b. MALARKEY

By THOMAS b. MALARKEY
United Press Staff Correspondent
SACRAMENTO, April 21.-From
the wreckage of the Riley-Stewart
taxation program, killed by the as
sembly late last night, emerged to-
day a new 10-point program which.
its sponsors claim, will balance the
state budget and reduce local taxes
by $120,000,000.
This program, already signed by
% assemblymen, bundles together
pending all anticipated legislation
into coherent and unified budget
balancing plan. It's outstanding
feature is two per cent sales tax
which would raise approximately
$50, 100000 for the forthcoming BIZ
ennium. This revenue would be
utilized to relieve counties Of man.
datory fixed school charges.
Further savings to the real estate
owner will be accomplished by the
enactment of legislation designed
to lower the school district tax. In
| addition legislation has been pro-
posed to transfer an additional II
cent of the Scent gasoline tax to
counties and cities. This would re-
suit in an equal division of the gas
| tax between the state and local
subdivisions and should eliminate
the necessity of the Accent road
district tax as well as certain mum
icipal expense for street work.
Point by point, the plan includes:
l. Two and one half million dol.
| lars from the 62-cents per barrel
tax on beer for the next two years.
2. Tightening up of inheritance
tax statutes will increase revenue
81 100000.
8. Equalization of bank and cor
poration taxes, $2,000,000.
4. Diversion of s8,779, ,750 from the
gasoline tax fund to reimburse the
general fund for expenditures in
Icurred during the present biennium
in payment of highway bond inter-
est and redemption.
5. Diversion of SO, ,449 1926 from the
gas tax fund for a similar purpose
during the next biennium, 1933-35.
6. One million dollars from ex-
pected revenue from the state s
share in the pari-mutuel horse rae
ing betting pools.
Z. Increase of gas company gross
receipts taxes from rs per cent to
8.5 per cent; electricity companies
from rs per cent to 9 per cent
and telegraph and telephone COM
panies from SIS per cent to SIS
per cent, thus bringing $500 900
| increased revenue.
8. Diversion of $4,000, 900 from the
state permanent school fund to the
state general fund.
8. Additional economies of ap-
proximately $2,l78,000 from un-
used appropriations, the unusued
| portion of the current emergency
| fund and other frozen funds.
10. Two per cent retail sales tax
which will raise approximately $780,
| 100000 for the biennium. This rev.
enue would be used to pay counties
fixed school charge and thus relieve
! real property taxpayers.
The plan was sponsored by
Speaker of the Assembly Walter j.
Little and Assemblymen Badham,
Cobb, Filey, Feigenbaum, William
! son, Clowdsley, Levey, Patterson,
Meehan, Maloney, Roland. Horn
blower, Knowland, Boyle, Redwine,
G. Ray Robinson, Roberts, Cottrell,
Hoffman, Cassidy Throp, Meeker,
Fisher, Cronin, McMurray, West and
| Nielsen.
The Riley-Stewart plan was vot-
ed down after perfmctory debate.
The program called for repeal OF
of amendment No. l, imposition of
a gross receipts tax, limitation of
real property taxes to so per cent
of government costs, and limitation
of governmental cost increase to
five per cent annually. Its defeat
was due to two causes: one, the
asserted pyramiding features of the
gross receipts tax; two. the report
1t would relieve oil companies OF
considerable taxes.