The times-news. [volume] (Hendersonville, N.C.) 1927-current, 1933-02-03
STORM: CENTER.
WILL BE.0VER
LEVY METHOD
Whole Tax Program As
Tentatively Agreed On,
Is Strapped
MAY BE EXTENDED
TO ALL INCOMES
BY J. c. baskerville
The Times News Bureau
Sir Walkep Hntel


RALEIGH, Feb. 3.-The ten
tative revenue bill recommended
by the Budget Commission has
been scrapped by the joint fl
nance committees and new bill
will be drawn before a joint sub
committee. 1t is expected that
the new bill will contain pro-
vision for a general sales tax of
8 per cent on all retail sales,
estimated to yield approximately
$12,500,000. The belief is also
growing that the general assem-
bly, will be, here at least until
April l before it will be able to
agree upon and enact revenue
bill.
The subcommittee appointed
to write the new revenue bill
which is expected to. contain q
general sales tax, is composed
Of Senator Rankin, Gastonia,
chairman of the Senate Finance
committee and Senators Waynick
Of High Point. Mclean of, Wash
ington and Aiken of Hickory;
Chairman Doughton, of Allegh-
any of the house finance com
mittee and Representa- ii e S
Cherry;of CASTOR, Moss of NASH,
Goffey of Caldwell, Flanagan
of Pitt and "Gattis Of Orange.
All the members of this joint
committee are regarded as being
more or less committed to the
belief that q general sales tax
is the only way to provide enough
revenue to operate the state
even on a minimum basis and
balance the. budget. It is-,u
derstood that even Represents.
ives Cherry, Moss and Rtanpa-
gan, who were opposed to any
sales tax in 1881, have virtu-
ally, come to the place where
they are willing to accept one
now. y
The big fight in the general
assembly is expected to center
shall be 8 per cent on gross re-
shall be 8 per cent on gress re.
tail sales, as is expected to be
proposed, or 2 per cent, or
whether a still smaller sales tax
shall be spread out over manu-"
.facturers, retailers and to all
incomes of lawyers, doctors,
teachers, preachers and farmers,
as is the case with the Mississ-
ippi sales tax. But indications
are that the fight eventually will
simmer down to a contest be-
tween the 3 per cent rate on
gross retail sales and 2 per cent.
1t is already apparent that the
manufacturing and industrial in
terests are either too powerful
or presented such a good case
for themselves in their hearings
before the joint finance commit
tees, to warrant serious consid-
GRAFTON of any form of produce
ton tax along the lines contain
ed in the bill introduced by Sen
ator Clement of Salisbury. i,
It is also apparent that the
industrial sections are going to
favor the 8 per cent sales tax,
in the hope that if $12,500,000
can be obtained from this source
that the high brackets in the
1881 Revenue Act can be lower.
ed and franchise, income and
other corporate taxes reduced by
to the levels of the 1925, Rev.
enue Ret. This would give many
of the corporations large reduc-
tions, since the 1881 Revenue
Act increased the franchise,
corporation income and other
corporate taxes all the way from
SO to 200 per cent above. the
1929 schedules. In other words
if it. is found possible to get as
much as $12,500,000 from a 3
per cent general sales tax, the
industrial interests are going to
try to get at least $5,500,000 OF
this amount: applied so as to re-
lieve them of that amount.
This procedure will be bitterly
CONTINUED on page five)